Car Insurance Premiums hit by EU drivers

The number of EU nationals working in the UK has become the subject of fierce debate on both sides of the immigration argument. However, the rise of EU drivers in the UK has brought with it its own issues, particularly for the average car insurance customer in the UK.

Research from car insurance company LV= has revealed that the number of resident EU drivers in the UK has risen by 270,000 in the last six years with the amount of HGV traffic from the continent trebling over the same period.

With the cost of insurance claims, potential congestion and accidents taken into account it is estimated that the cost to the economy of EU drivers will reach £795million in 2008 – an increase of £100million compared to the previous year.

Why is the rise of EU drivers a potential problem?

Clearly the number of EU nationals on UK roads has its benefits. They are, for the most part, bringing a boost to the economy by providing goods or services. The development of the EU has allowed people to be much more flexible in the way they work with the ability to be more mobile and it’s probably fair to suggest that there are many UK drivers traipsing across the continent too.

However, clearly such a large increase in the number of vehicles on the roads has an impact on safety. Car insurance claims involving EU drivers have grown every year from 2001 to 2006 and since 2001 collisions with these foreign nationals have increased from 11,685 to 18,865. That’s a leap of 61.4 per cent.

It’s not just accidents either, as their presence also has an impact on congestion. In 2007, EU car and lorry drivers combined to contribute an additional 6.6billion miles to UK traffic. The cost of this congestion was estimated to be £328million on the economy in 2006 and is expected to rise to £494million by 2012.

The affects of the increasing number of EU drivers on British roads is inevitably met by the taxpayer at least in terms of road maintenance and additional emergency services. The issue of car insurance claims brings with it a very different dilemma.

How do accidents with EU drivers affect car insurance claims?

The cost of car insurance claims involving EU drivers has risen dramatically – almost doubling in the last five years to £36million. Accidents involving Polish drivers top the list at 16.6 per cent, closely followed by drivers from Germany (13.5 per cent), the Netherlands (13 per cent) and France (10.7 per cent).

When two vehicles from different countries are involved in a collision it complicates the claims process. It can be costly and slow for an insurance company and drivers should ensure they are covered for accidents involving EU drivers in their policy’s terms and conditions.

The process has been known to take years for a car insurance claim to be resolved, predominantly because there are so many intermediaries involved in negotiations. Consequently, UK drivers are urged to provide their car insurance providers with as much as information as possible when an accident takes place to speed up any issues.

What should you do if you have an accident with an EU driver?

Basically you should follow the same procedures you would undertake if you had an accident with a UK motorist. However, it’s perhaps all the more crucial to ensure the information is accurate and that you don’t miss anything important.

Firstly you must exchange name and address with the other driver, take the registration number and note down insurance details if the EU driver has them to hand. It’s a good idea to ask the driver how long they will be in the country for and if they have a temporary UK address at which they can be contacted, particularly if police action is necessary.

You must report any accident to the police within 24hrs. It’s a good idea to note down the make and colour of the car you’ve been involved in an accident with, along with its registration plate. Note any damage to both vehicles and take pictures if you have a camera on hand. Look for witnesses too and note down their names and addresses.

Draw a rough sketch of the accident and where the vehicles ended up. Make notes of what happened too, as soon as possible, so you don’t forget anything when a claim is made.

From there get in touch with your car insurance company and explain the situation. Help your insurer as much as you can with any queries and work with them to solve the issue as quickly as possible.