One in three falling foul of car insurance laws

One in three motorists knows someone who has either driven, is driving or has considered driving without insurance-that’s the shocking finding from new research from GEM Motoring Assist. With the nation gripped by recession, it is becoming apparent that drivers are willing to cut corners to save money.

Motorists face severe punishment if caught, including fines of up to £5,000, six to eight points on their driving licence, having their licence revoked or even having the police confiscate and dispose of their vehicle.  Furthermore, with the new motor insurance law which came into force earlier this year, it is now possible for the DVLA to compare its database with the motor insurance database to find out if vehicles are insured.  The DVLA can then inform uninsured drivers and should they subsequently not renew their insurance their car can be confiscated.

Sometimes however, motorist unintentionally break the law by failing to understand their insurance policies. To help breakdown firm, GEM, has issued a list of some common myths and facts:

Top Insurance Misconceptions:

Myth: You’re automatically insured to drive other cars if you have a comprehensive policy.

Truth: This is not always the case, as it can depend on your age or occupation. It is always best to check your policy beforehand.

Myth: You’re fully covered with a comprehensive policy if you have an accident whilst driving another person’s car.

Truth: A comprehensive policy will often only cover the damage tothe car or object you hit, not the damage to the car you are driving.  Always check the level of insurance your policy provides.

Myth: Third-party cover is cheaper than comprehensive.

Truth: Not true. Some insurers have raised rates for third-party because of the number of high-risk drivers who apply.

Myth: Non-fault claims won’t affect your insurance premium.

Truth: Even if you didn’t cause the accident, your premium can still rise.

Myth: You don’t need to inform your insurance company if you have less than six points on your licence.

Truth: All points have to be declared, even for previous offences, regardless of how long ago.

Myth: You’re always guaranteed a courtesy car if you have an accident

Truth: Not true. These are normally subject to availability, and in most cases only offered if your car is repairable and taken to the insurer’s approved repairer.

David Williams, CEO of GEM Motoring Assist comments, “It is imperative that drivers understand the importance of always having motor insurance and always at the correct level. The truth is that if you find yourself in an accident without insurance you will end up forking out a whole lot more money, not forgetting the penalties if you are caught driving your vehicle without insurance.”

David continues: “Despite many motorists being aware of these consequences, it is shocking that so many drivers know friends or family who have driven without insurance or who have even considered doing so. Plus, if motorists take the risk of driving without insurance it is also likely that they have failed to tax or MOT their cars or indeed even gained a valid driving licence.”

Author: Faye Sunderland, August 18th, 2011
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