Will clean motorists end up subsidising those with points on their licence?

With more and more cameras appearing on the roads an increasing number of drivers are being caught speeding. It is unlikely that more of us nowadays are speeding but merely that it is far easier than ever before for the police to catch us breaking the law. According to 2004 figures 2.1 million drivers were given speeding tickets that year, accounting for just over one third of all driving offences. You may well think that this could have a serious impact on the amount you pay in car insurance. It seems, however, that much depends on which insurance company you use.

Half of all UK insurers will ignore a one-off offence under SP30 (breaking the speed limit) whereas others will increase your premium by up to £1545. Offences under SP50 (speeding on a motorway) and SP60 (undefined speeding offence) are more serious and Swiftcover are the only insurers to ignore these. Insurers are likely to take a dim view of multiple offences on the basis that this demonstrates habitual behaviour rather than a one-off lapse. For two offences under SP30 you can expect your premium to rise by as much as 70 per cent or in some cases, particularly with young drivers, you may be refused insurance.

Motorists should not be tempted to lie to their insurance companies about how many points they have as the insurers can cross-check against a central data-base and if clients who are in an accident are found to have lied, their policy will be invalidated, leaving them with a hefty bill.

There are of course plenty other ways to get points on your licence such as having defective tyres or brakes, using a mobile phone or failing to stop after an accident; currently more than 6 million of us have points. For motorists who are close to losing their licence there is special insurance available from companies like Chauffeurplan and Keepumoving to cover the costs of alternative transport, from as little as £4 a month. Under the Chauffeurplan policy you are given £300 a week to cover taxis, trains, planes or even a private driver.

Some motorists may well see all this as good news. Points on the licence no longer mean dire financial repercussions and for the price of a couple of pints a month, disaster can be held at bay if you do lose your licence. The disquieting thing, however, is that someone along the line has to pay the price and it seems likely that it will be the drivers with clean licences who will end up subsidising the minority by general increases in their premiums.

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