Uninsured drivers harming No Claim Discount.

Posted on: 25 August 2011 by Gareth Hargreaves

Motor Insurance Bureau reports uninsured drivers cost UK motorists £380m a year

No claim bonusAccording to the Motor Insurance Bureau there are 1.4m uninsured drivers in the UK today, responsible for 160 deaths and 23,000 injuries on Britain’s roads each year. So the chances of having an accident with an uninsured and untraced motorist are higher than you might expect.

In May this year, changes to the law governing uninsured vehicles were introduced to crack down on uninsured drivers, and help reduce the number of deaths and accidents on our roads. Churchill Insurance was among the first to demonstrate confidence in the new legislation by introducing an 'uninsured driver promise' in July 2011.

Road Safety Minister Mike Penning has said “Uninsured drivers push up premiums for other motorists and often drive with no regard for other road users.”

The changes, which now make it an offence to keep an uninsured vehicle (that has not been declared as SORN) on the road or a public place, will make it easier to tackle uninsured drivers. Owners of uninsured vehicles will be sent a letter telling them that a failure to obtain car insurance could end with them facing a £100 fine, and the possibility of having their vehicle destroyed.

How do uninsured drivers affect your No Claim Discount?

If you’re involved in an accident with an uninsured driver, and you have comprehensive car insurance, your insurance company will pay for your car to be repaired. However, you could lose your no claim discount and it’s most likely you will have to pay the excess on your policy. The cost of the excess could leave you a few hundred pounds out of pocket straight away, and losing your no claim discount could increase your premium each year until you’ve built it back up again.

Motorists believe it is unfair to penalise them because someone else has broken the law, so Churchill's uninsured driver promise, which is included with all comprehensive car insurance policies, is a welcome added safeguard. This means your no claim discount is protected if, by no fault of your own, you’re hit by an uninsured driver – and they’ll cover your excess too.

Uninsured drivers already cost other motorists around £380m a year (pushing all car insurance premiums up by about £30), so the uninsured driver promise is a welcome and valuable addition to comprehensive car insurance. For more information, visit Churchill.co.uk.



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