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.
Solutions
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.
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Post supplied by Tony, on behalf of SO Switch. Tony is a UK finance blogger who loves to find a bargain and save money.
Modest Money says
I didn’t realize that was such a big problem in the UK. Here in BC, Canada, our license plate has a sticker that states when the insurance expires. So it is relatively easy for a police officer to notice that their insurance is expired. I think it mostly prevents people from driving without insurance.
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Ethan's Money says
Interesting, I never realised that so many cars are on the road without insurance! Anything that helps to address the problem has to be a good idea.
One argument might be that we don’t need a separate ‘pink disc’. Under existing UK vehicle licensing regulation you need to provide details of insurance in order to obtain the tax disc that we already have to display on our windscreens.
So, perhaps it’s just a case of better enforcing our existing licensing regime?
On the other hand, an additional ‘pink disc’ might raise the profile of car insurance. It would definitely stop people from not taking out car insurance during the months when they don’t need to tax their car.
What do people think?
savvyscot says
I think the problem is that a lot of people will take out a policy then cancel it. That way they have a certificate to show the post office. Maybe the validity of your policy should be checked when purchasing tax?
B Gilbey says
I don’t know where this Baroness thinks she has seen this pink disc on French vehicles that she keeps making reference to. France has not had tax discs since 2001, it was abolished. The only thing on a French windscreen is and always has been a Green insurance certificate and a similar MOT style sticker. Pink discs however?? The 96 tax disc was pink. Meaning she hasnt seen a French car in over 16 years……