Partner Article

Counting the cost of insurance avoidance

The cost of car insurance has risen rapidly in recent years, with the average motor insurance policy now standing at a record £971 a year. With costs so high, it is perhaps no surprise that an estimated 1.4 million now drive without insurance in Britain.

Over 50’s insurance specialist Castle Cover explain that while those dodging their annual insurance bill may be saving themselves money, they are costing the economy £500 million every year and adding an average of £30 to the policy of those who do.

Understandably, this news has angered the thousands of honest drivers who pay their insurance premiums.

A new survey carried out by insurance broker Adrian Flux revealed that the majority of drivers believe the existing penalty for driving without insurance is far too low. Currently, motorists caught without insurance are given six penalty points or handed a fine of £200, an amount that seems unbelievably low when compared to the cost of insurance itself.

One in five motorists think that the fine should be equal to the figure that each specific driver would have to pay for insurance, one in four believe that offenders should receive a prison sentence and 40 per cent said that the drivers should receive a ban. Community service was another punishment that was suggested, with one in ten drivers saying they would welcome such a move.

A total of 1,000 drivers were questioned for the survey and the results show that the anger towards insurance dodgers is widespread. Perhaps this is because the cost of motor insurance is so high that it is squeezing the budget of every driver –even households on modest budgets are seeing a huge drop in their disposable income because of the cost of car insurance.

However, students and young people are feeling the burden more than most. The average motorist under the age of 22 has to pay £2,497 for car insurance – a price that many simply cannot afford.
The sharp rises are also hitting businesses such as taxi firms and distribution companies. With the price of insurance and petrol growing increasingly expensive, businesses and SMEs are seeing profit margins squeezed as transport costs soar higher and higher.

Firms and families alike are being forced to make cuts elsewhere to compensate for the rise in their car insurance premiums. When everyone else is working hard to pay the inflated prices, is there any wonder that they feel anger towards those who dodge their insurance and push the price up for everyone else? However, while the fine for getting caught remains much lower than the cost of insurance, there will always be motorists willing to take the risk.

This was posted in Bdaily's Members' News section by Jonny Marshall .