Cost of uninsured drivers soaring
Tuesday 21 December 1993
There has been a 70 per cent increase during 1993 in the cost of third-party claims made to the Motor Insurers' Bureau, which compensates innocent parties when no legitimate insurer can be traced.
The MIB is funded through individual motor insurance companies by all motorists and adds about 1 per cent to each driver's premium.
In 1993 pounds 85m was paid out compared to pounds 50m the year before, despite the fact that the number of claims only rose 17 per cent, to 40,000, in the same period. Since 1988 the cost of claims has rocketed by 227 per cent, while the average cost of insurance premiums has gone up by nearly 50 per cent, according to the Consumers' Association.
According to the RAC, in many parts of the country there is no stigma attached to driving with no insurance. A spokesman said many offenders regard themselves as being insured by the MIB.
The Association of British Insurers said fines for driving with no insurance were so low that for many drivers it was almost worth taking the risk.
The Automobile Association said the 3 per cent tax on insurance premiums introduced in the Budget would discriminate against young motorists and people living in higher risk areas and would further intensify the problem of uninsured motorists.
The Department of Transport said a working party would soon report on the possibility of introducing windscreen insurance discs. Many experts say these would not solve the problem because in Britain, unlike in most European countries, it is the driver who is insured, not the car.
- 1 Isis 'jihadi bride' claims forced sex with Yazidi girls is never rape because Koran condones it
- 2 Woman accidentally shoots herself in the head while posing for a selfie
- 3 Art Garfunkel calls Paul Simon a 'monster' with a Napoleon complex
- 4 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 5 Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
Isis 'jihadi bride' claims forced sex with Yazidi girls is never rape because Koran condones it
Woman accidentally shoots herself in the head while posing for a selfie
Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£35 - 40k + Benefits: Guru Careers: We are seeking a Software Developer (JavaS...
£18000 - £23000 per annum + Commission: SThree: As a Trainee Recruitment Consu...