Uninsured drivers and fraudulent claims are adding around £50 to the cost of
car insurance, new figures have indicated.
According to research conducted by Co-operative insurance, nearly a quarter of young people admitted to driving without insurance or a license during the last year, which is coming out of the pocket of honest motorists.
The study revealed that the additional cost on premiums to cover such behaviour is around £1.25 billion a year – which is equivalent to 52 days of cover on the average policy.
Tim Franklin, Chief Operating Officer at The Co-operative Financial Services, said: “Millions of people are deliberately flouting the law by not insuring their cars at massive cost to honest road users and the wider insurance industry posing an unnecessary and unjustified risk.”
He added that most people would report benefit cheats, so those deliberately avoiding insurance should be treated no differently as risk calculations are pushing up prices for other drivers.
Under current law, anyone found to be driving without
car insurance faces having their vehicle seized, a £200 fine and six penalty points on their licence.
