Penalty Points Increase Cost Of Motor Insurance by 89.3%
Driving licence penalty points raise cost of motor insurance by 89.3% / £132 million. Motorists in London most heavily penalised.
Penalty Points Increase Cost Of Motor Insurance By £132 Million
Driving licence penalty points increased the cost of motor insurance by 5.1% to 89.3% in the last year which totalled £132 million, the Institute of Advanced Motorists and MoneySuperMarket claimed.
Motorists with 1 to 3 points paid an additional 5.1% followed by those with: 4 to 6 (25.8%), 7 to 9 (45%), 10 to 11 (81.9%) and 12+ (89.3%). Penalty points were collected for offences such as speeding and drink-driving.
This – from the insurance industry's perspective – suggested the recipients were a comparatively high risk on the road so premiums rose on this basis.
London motorists faced the highest penalty at £8,079,529. It incorporated those that had 1 to 3 points (£2,454,856), 4 to 6 (£3,880,410), 7 to 9 (£1,265,990), 10 to 11 (£269,797), and 12+ (£208,466).
London was followed by: Glasgow (£4,080,190), Birmingham (£3,423,840), Nottingham (£2,833,865), Newcastle (£2,642,079), Cardiff (£2,586,075), Sheffield (£2,535,609), Edinburgh (£2,070,783), Swansea (£2,036,358) and Manchester (£2,026,561).
Safety Charity's Perspective
Institute of Advanced Motorists Chief Executive Officer, Sarah Sillars, said: “If people don’t understand the safety dangers of the offence they have committed which has earned them the penalty points, they should certainly understand the damage it will do to their bank balances.”
The road safety expert added: “Someone with multiple points and fines is paying through the nose for car insurance; just think what other things they could use that money for. Driving safely could put thousands back into your pocket.”
Insurance Expert's Perspective
MoneySuperMarket insurance expert Kevin Pratt added: “When it comes to driving offences, points definitely don’t mean prizes. In fact, points on your driving licence mean pounds – extra pounds payable on your car insurance.”
He added: “Insurers want to know about your motoring offences so they can build up a picture of what kind of driver you are. The more points they see for offences such as speeding and careless driving, the higher your premium will be.”
Mr Pratt explained: “A typical £500 premium would increase to around £525 for someone with just a single three-point speeding offence. But someone with six points on their licence could see their premium leap to £625. Drivers with points on their licence should shop around and compare prices when it is time to renew their insurance as it is highly likely they will get a cheaper offer with another provider.”
He conluded with: “The message is simple: points on your licence puts pounds on your premium - so stick to the speed limits and drive with care, courtesy and attention to avoid unnecessary costs.”