"Fines For Uninsured Drivers Not High Enough" Shouts Direct Line

With young drivers facing premiums of £2,000 - £3,000 a year, many are taking the risk of driving uninsured, reasoning that the fine and loss of their vehicle if caught will be far less than the cost of the insurance.

Now there has been a re-think of fines for driving uninsured and Direct Line is saying that the proposed new fines for uninsured drivers not high enough.

Direct Line argues

*        Uninsured drivers cost Britons £500 million each year
*        Fine for being uninsured could be as little as £50
*        People fined more for overfilling their bin

Direct Line is calling for a policy rethink after proposed new fine levels for uninsured drivers could be as little as £50.  

Whilst initially a fine of £100 will be issued, if paid promptly it reduces to £50 and is unlikely to deter the persistent uninsured driver. The new fine level is even less than the current average fine of £185 which has already fallen from £224 over the last decade.* This is despite the £500 million financial burden of uninsured driving adding around £30 to insured drivers’ premiums.**

With accidents involving uninsured drivers killing around 160 road users each year,** the new proposed fines stand in stark contrast to the maximum penalties for a range of lesser misdemeanours such as:

*        Failure to pay your TV licence fee: £1,000
*        Smoking in a smoke-free place: £200
*        Conviction for graffiti: £5,000
*        Fare evasion on London buses: £1,000
*        Overfilling your bin: £110

Andy Goldby, Director of Motor Underwriting at Direct Line, says, “Whilst we welcome this initiative, with uninsured drivers costing British society around £500 million each year, the severity of penalties must act as a deterrent to those considering driving without insurance.

“Of the 1.5 million uninsured drivers on our roads, only 260,000 are convicted each year.* The Government’s proposed Continuous Enforcement programme will catch more uninsured drivers, but if the fines are less than the average insurance premium then it’s not going to stop them from re-offending.  

“Uninsured drivers cause accidents which kill around 160 people each year** and seriously injure hundreds more. The fact that the new proposed fine for driving uninsured is less than if you were to overfill your bin is alarming. We will continue to push the government to review the level of fines.”

Significantly, drivers in higher risk demographic groups are more likely to be uninsured with almost a fifth under the age of 20.** Uninsured drivers are five
times more likely to be involved in road collisions, to fail to comply with other road traffic requirements, and to be engaged in other criminal activity.***

Key facts (from Direct Line):

The average fine imposed at magistrates courts for uninsured driving was £185 in 2006 (the most recent year for which figures are available). This compares with £224 in 1997.*

63,000 uninsured drivers were convicted by magistrates courts in 2006. This compares with 255,000 in 1997.*

Almost a fifth of uninsured drivers are under 20 years old.****

It is estimated that one-in-twenty drivers are uninsured. This represents around 1.5 million motorists.
        
Direct Line is one of the few insurers to offer as standard a nil excess and maintain its customer’s No Claims Discount if they are hit by an uninsured driver. With uninsured drivers already adding around £30 to everyone’s insurance premium, drivers shouldn’t have to pay even more if they are hit by an uninsured driver.

However, Direct Line does not propose to reduce insurance premiums for drivers aged under 20 to an affordable level. Instead it continues to level them on the basis of underwriting statistics which show that your drivers are a proportinatel greater risk.

By giving young drivers no alternative to either driving uninsured or not driving at all, and by drawing attention to the low level of fines, Direct Line could unwittingly be showing many more young drivers that the way out of their dilemma is to risk driving uninsured.

For more information on the features of Direct Line’s car insurance, visit www.directline.co.uk