A surprising fact that has come to light recently is that up to 1.2 million vehicles are being used on the road in the UK without having insurance cover in place. The consequences for anyone involved in an accident with someone who has no insurance can be disastrous. Some have therefore called for the introduction of a system which would mean drivers have to display their insurance information on their vehicles.
The details would be displayed by means of a small pink disc that would be placed on the windscreen of a vehicle much like a tax disc. There has been a similar system in place in France for several years now and some leading figures in the UK, such as Baroness Oppenheim-Barnes and Lord Mawhinney, who is a former Secretary of State for Transport, have started a campaign for it to be introduced here.
The Dangers of Drivers with No Insurance
The 1.2 million uninsured drivers in the UK amount to a staggering one in twenty motorists. In addition, statistics show that uninsured drivers are often the biggest danger on the roads. Research carried out by the Association of British Insurers has revealed that they are at least three times more likely to receive convictions for dangerous driving than insured drivers.
The problem is that vehicle owners who do pay their insurance premiums end up paying for all of these uninsured accidents. It has been estimated that, on average, insurance premiums are up to £30 more expensive due to the accidents which have been caused by uninsured drivers. In the UK as a whole, some £500 million is being paid out annually by motorists who choose to obey the law.
However, there is another aspect to the issue that is far more worrying and frustrating for the law-abiding motorist. Because if an insured driver is involved in a collision with an uninsured driver, the accident will still go down as a ‘fault claim’ on the insured person’s record. Essentially, that means when repairs are made to the vehicle the insured driver will have to pay the excess. In addition, their no-claims bonus will undoubtedly be affected.
The issue is a serious one. Fortunately, measures have been introduced recently in an attempt to address the problem. The police now have the power to seize any vehicle that is being used on the roads without insurance. The vehicle will be impounded and subsequently crushed. So far, the scheme has proven something of a success. Within a year of it being introduced in Durham, the police there have impounded some 1,200 vehicles.
The scheme is nonetheless limited, of course, as the police don’t have the manpower to catch every offender. This is why the ‘pink disc’ idea could prove effective as the general public could play their part in eradicating the problem. Naturally, the scheme has its drawbacks and requires some fine tuning. For example, drivers could take out a policy on an instalment basis, receive a pink disc and then stop their monthly payments. It is nonetheless an idea that is worth considering and one which law-abiding drivers will be sure to welcome.
Post supplied by Tony, on behalf of SO Switch. Tony is a UK finance blogger who loves to find a bargain and save money.