Car Insurance News - March & April 2004

Posted April 2004

Uninsured Drivers Targeted In New Clampdown Proposal

Under new draft proposals put forward to the Government by the Association of British Insurers (ABI) convicted uninsured drivers would be forced to hand over their assets to help pay for appropriate compensation to victims. Examples of assets seized may include Hi-fi’s, TV’s, cars, and property.

The idea behind this radical proposal is to ensure victims are properly compensated for their loss and ultimately reduce the numbers of uninsured drivers on the roads. The proposal is also part of a wider ranging package which includes impounding the cars of uninsured drivers who cost the industry and the paying population around £550 million a year. Every driver who does have car insurance is currently subsidizing the uninsured driver by £30 each year. Over 2 million people in the UK currently drive without insurance and are 9 times more likely to crash than a driver with car insurance.

In France the system of pursuing the uninsured driver for compensation has meant that only 3% of the driving population are uninsured. This compares to 5% in the UK.

The ABI wants to see larger punishments handed out as the current system encourages those without suitable financial incentive to ignore car insurance. At present an uninsured driver can expect a fine of £150 in comparison to an average car insurance premium of £350. An ABI spokesperson said ‘The prospect of losing a hi-fi or TV would have a very strong deterrent effect’.

Unless the proposal in put into action quickly UK motorists should expect to see their subsidization of uninsured drivers double by 2005 to £60 a year according to the ABI!

Posted March 2004

Hill House Hammond Insurance Brokers To Close

Aviva who own Hill House Hammond Insurance Brokers, in addition to the Norwich Union Group of companies, have announced Hill House Hammond Insurance Brokers will cease trading later this year. All existing and new customers’ insurance policies will be honoured and communications have been issued to policyholders explaining the forthcoming changes. Hill House Hammond branch network consists of 230 outlets in the UK.

Posted March 2004

New 'speeding insurance' policy available for motorists worried about the threat of disqualification through amassed points

Adrian Flux, the specialist motor insurance brokers, have recently launched ‘Flashguard’, a new type of insurance for motorists who are concerned about being disqualified from driving as a result of speeding convictions. The policy is designed to provide financial assistance up to £6,000 for alternative transport costs in the event that a driver could be disqualified from driving through amassed points on their licence. To qualify for this new type of insurance drivers must have no more than six points current or pending and they must not have been disqualified for any offence during the previous 12 months. Naturally drink and drugs-related convictions are not covered, nor are those directly associated with dangerous or reckless driving convictions.