Biba warns of uninsured drivers raising premiums

www.moneynews.co.uk > Insurance > Biba warns of uninsured drivers raising premiums

Biba warns of uninsured drivers raising premiums

Wed 22nd Nov 2006

Drivers that are uninsured are not only endangering the lives of other road users and themselves, they are also forcing the price of premiums up, according to a spokesperson for the British Insurance Broker's Association (Biba).

The likelihood of an uninsured driver being involved in an accident on the road is eight times greater than drivers who are insured and this is resulting in the average person paying an extra £30 in insurance premiums.

Graeme Trudgill, Biba's technical services manager, said: "The level of uninsured drivers in the UK is beginning to fall but the claims cost is still increasing.

"That means that the Motor Insurers' Bureau are paying out over £300 million pounds a year to victims of uninsured driving and they get that money from the extra cost that the insurers place on everyone's premiums."

At present, a government initiative entitled Operation Foist is taking place in a bid to get uninsured vehicles off the road which will reduce accidents and also decrease insurance premiums as a result.

The initiative is the brainchild of Scotland Yard and Transport for London and it has been reported that some 50 cars a day are being seized from east London's streets as part of the crackdown.

Related News : Insurance
	Under-insurance 'a costly mistake for Brits'
	Rodents and pests 'causing havoc for homeowners'
	Brits 'should be aware of home cover details'
	PPI scandal 'has helped tighten financial regulation'
	Location 'can impact home insurance costs for Brits'
	FSA and CC 'failed to tackle PPI issue head-on'
	Pet cover 'important for Brits to get right'
	UK homes are 'falling into disrepair'
	Brits advised on reducing home insurance cost
	UK insurance 'has become more complex'