UK Insurance Industry Feeling the Cost of Uninsured Drivers
Uninsured drivers are costing the UK insurance industry £500 million per year according to data released by the Motor Insurers Bureau. They have estimated that for every death caused by a driver without insurance, the British taxpayer faces a bill of £1.2 million and £140,000 for every serious road accident.
That leaves law-abiding policyholders paying £30 more than they should do for their premiums, simply to cover the costs that uninsured drivers are causing.
The number of people driving without proper car insurance is on the increase and when the average fines handed out to these people when they are caught are looked at, it is not surprising. The average fine for driving uninsured has fallen over recent years from £224 to just £185.
Compare that figure to the maximum fines imposed on people for using graffiti being £5,000 and for those not paying their TV licence standing at £1,000 the difference is startling.
However, the problem of uninsured drivers is far more dangerous and concerning. Drivers without insurance are responsible for over 200 deaths on Britain’s roads every single year. The Motor Insurers Bureau also estimates that one in twenty people are driving without proper cover, which is a staggering 1.5 million motorists in the UK.
When the reasons for people driving without insurance are looked at, the picture becomes even more disturbing. Uninsured drivers are four times more likely to drive without due care or attention, six times more likely to drive a vehicle that is deemed un-roadworthy, and perhaps more concerning, ten times more likely to have a conviction for a drink driving offence. These are dangerous motorists who cannot afford to be insured, so simply do not bother.
In the summer of 2008, new legislation was passed by the government to allow law courts to hand out custodial sentences of a maximum of two years to uninsured drivers who caused a fatality on the roads. Before then, courts could only impose fines up to a maximum of £5,000, but were unable to send people to prison.
Campaigners had complained for years that the courts assumed driving without insurance was a victimless crime and punishment was not severe enough. However, offenders still believe that if they are caught without cover, all they expect to face is a small fine and points on their licence. People remain sceptical about the introduction of custodial sentences actually acting as a big enough deterrent.
Rochelle Martinez, Freelance Web Content Article Writer for three years.
Article Source: ArticlesBase.com - UK Insurance Industry Feeling the Cost of Uninsured Drivers