Car Insurance Premiums Hit by the Uninsured

Car insurance premiums hit by the uninsured

In the car insurance industry, honesty is always the best policy. If you fail to tell the truth, the whole truth and nothing but the truth to an insurer then chances are that when you need to make a claim it will discover the discrepancy and your hopes of a payout will be dashed.

Most people who lie to their car insurance provider do so to save cash – for example they claim to park in a garage at night, even though their property doesn’t have a garage, because most insurers reduce premiums for this added security. The theory behind the dishonesty is straightforward enough – motorists hope they will pay less on their premiums while still enjoying the protection an insurance policy can provide.

Unfortunately however, since the onset of the credit crunch, it seems that car insurance premiums have become all the more unaffordable for even more drivers. As such they are not just cutting corners, but driving without insurance altogether.

How many motorists drive without car insurance?

A survey by a comparison website has revealed that the number of motorists driving uninsured has risen by 33 per cent compared to 2008. Indeed around a fifth of motorists admit to driving without insurance compared to just 15 per cent last year, while incredibly, nine per cent of motorists have shown complete disregard for the law by driving their own car without insurance. A further three per cent confessed to driving without insurance before renewing their policy.

This trend, which seems to be provoked by motorists looking to save cash, could prove to be a false economy. If hit by another motorist, only those with comprehensive car insurance can expect to have their car repaired by an insurer and even then they may lose their no-claims discount. Indeed it is estimated that accidents involving uninsured motorists add around £30 to the average motorist’s premiums.

If you’re the one driving without insurance then the penalties can be even greater – and make the risk far from worthwhile.

Anyone caught driving without car insurance faces an instant £200 fine and six points on their driving licence. There’s also a strong chance that their car will be impounded – which typically costs £150 for collection and an additional £20 for every day it remains in storage.

So the message to drivers is to take out car insurance, not only to protect yourself in the event of damage to your car, but also to safeguard yourself against less responsible drivers.

How to get cheaper car insurance

Of course just because you should take out car insurance, it doesn’t mean that it’s affordable. Indeed the latest quarterly figures from the AA British Insurance Premium Index showed a rise of around 3.5 per cent in average premiums to a whopping £778.13 a year.

As such, honest drivers should take all the steps they can to cut their premiums without taking the risk of driving uninsured. One step, for example, is to improve your own driving – picking up any convictions will hurt your premiums, while staying accident free can allow you to build up a no-claims discount.

Security is high on the agenda of most insurers when determining premiums. Keeping your car safe from thieves by parking in a garage at night, and by fitting car alarms and immobilisers will work in your favor. Another option is to pick a car with a smaller engine and no modifications – the more conventional the car the less likely it is to be driven at high speeds and targeted by thieves.

When applying for car insurance also make an honest assessment of the number of miles you drive each year. The less you drive, the lower your premiums will be so you may be able to agree to a mileage limit.

If you’re a younger driver then typically your premiums will be the highest as you’ve yet to prove yourself as a reliable driver and accidents involving young motorists are sky high. Nevertheless there are ways to cut premiums such as by taking advantage of a rapid bonus scheme which allows you to earn a full year’s no-claims discount in around nine or 10 months. The Pass Plus course also helps insurers see that you are a safe driver and some are willing to cut premiums by around 35 per cent if you complete the course. Another option is to add a parent to a policy as a named driver so you can benefit from their experience – don’t ask them to front a policy for you however, as this will invalidate your insurance.

Perhaps the most important step to cheap car insurance however, is to shop around before you buy – according to the AA British Insurance Premium Index the average quote for those who shop around is £250 cheaper than those that don’t. So make sure you use a comparison website to compare the deals available to you rather than accepting the first quote you find.