Norwich Union not issuing 'punitive' insurance premiums

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Norwich Union not issuing 'punitive' insurance premiums

Tue 29th May 2007

Customers will not be encouraged to drive less responsibly if they are not penalised through higher premiums from their insurance company, Norwich Union has said.

According to David Ross, a spokesperson for the group, the insurer was ignoring the notion that people who speed have more accidents because there was little evidence to support it.

"The perception that if you've got a couple of speeding convictions means that you're a bad driver doesn't necessarily seem to be borne out by our data," Mr Ross said.

"People drive the way they drive…I don't think there's any suggestion that people would drive differently because they thought it might cost them a little bit more on their insurance," he added.

Direct Line contends that people with points on their licence are more likely to have an accident and so they incur higher premiums through greater risk.

The group offers a range of personal finance products to more than ten million customers across the UK and in Europe.

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