Increased Number of Uninsured drivers having a damaging Effect


Increased Number of Uninsured drivers having a damaging Effect

Recent figures indicate an increased rate of accidental claims against illegitimate road users which further emphasises the destructive effect of uninsured driving.

In the past 12 months, MIB (Motor Insurers’ Bureau) reported about 10% rise in compensation claims by those who have fallen victims to uninsured driving. This will go down as the first recorded increase in ten years.

According to RAC, this may indicate a rising number of uninsured drivers which could result in a subsequent increase in insurance premiums paid on cars. It also offers a higher safety risk to all road drivers.

For many years before this increase, there has been a regular decrease in the number of accidental claims associated with uninsured drivers. A decrease of about 56% was recorded yearly since 2004. This represents a reduction from 25000 yearly to approximately 11000.

According to the MIB, many factors could be responsible for the increase, from the rising number of drivers without insurance, a more efficient law enforcement and a difference in the volume of cars on the road.

A statement by the boss of MIB states that the volume of claims which MIB deals with every year shows the damaging effect of uninsured driving on families and communities throughout the country.

Starting from the 1st of June, the insurance premium tax rate rose from 10% to 12% which represents twice the rate on many policies about two years ago.

This increases which have resulted in a higher premium for young drivers has given rise to thoughts that more drivers would take the risk of driving without cover.

The insurance director of RAC, Mark Godfrey noted that there’s a need to validate facts before drawing conclusions. He, however, agreed that there is an obvious indication of more uncovered drivers on the roads of Britain. Last year’s Statistics from the industry recorded about one million of those drivers. Godfrey added that if it proves to be true, many potential factors could be responsible. He said that on three occasions, drivers have been subjected to different increases in IPT within just two years. RAC interpreted it as an original stealth tax on motor drivers.

The director further said that at 12%, it means payers of the highest premiums (mostly younger motorists and lowly experienced drivers) are to pay a higher tax. There is a concern that rising premiums may push more drivers to take the risk of driving without cover which could potentially lead to higher premiums for all.

Godfrey further said they have emphasized that premiums are being increased unnecessarily due to governmental alterations in the manner of calculating compensation premiums. He vowed to call for the result of the Ministry of Justice’s review on August 3 to be promptly released.

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