How uninsured drivers cost us all dear

As if the rising costs of fuel and tax weren't enough for motorists to contend with, new research from moneysupermarket.com shows the scale of Britain's problem with uninsured drivers.

The study has revealed that a staggering one in six of us has admitted to driving a car we weren't insured on.

Here, we take a look at what this means for the majority of road users and how you can combat the extra costs without falling foul of some new rules which apply to cars not currently in use.

Ignorance, apathy and other excuses

Amazingly, nearly a third of those who admitted to driving without any insurance said they didn't know they needed to be insured to get behind the wheel.

Equally mind-boggling is the fact that one in 10 of those who admitted driving uninsured said they simply couldn't be bothered arranging cover, while 6% said there was no point buying car insurance because they didn't think they'd be likely to have a crash.

The majority of those who owned up to having driven without insurance said it was due to the fact they were in-between policies.

Worryingly, 13% said they had been driving uninsured because they just can't afford the ever-increasing cost of insurance cover, which is inadvertently pushing up the costs in itself, according to the Motor Insurers' Bureau.

The bureau deals with 30,000 claims involving uninsured drivers every year and says uninsured driving is costing the industry £500 million each year, adding the equivalent of an extra £30 to each of our annual car insurance premiums.

Peter Harrison, head of car insurance at moneysupermarket.com, said the number of drivers prepared to get behind the wheel without proper insurance is "extremely worrying."

He said: "It is illegal to get behind the wheel without adequate cover and, should you be involved in a crash when not insured you could face thousands of pounds in liability, a conviction including six points on your license as well as charges of up to £5,000.

"Our research shows insurance premiums rose on average by 44p per day, or by 31%, last year. Coupled with rising fuel prices, you can see why people are looking to cut costs, but car insurance is a necessity for all motorists and not something you should avoid paying for."

Did you know the rules are changing?

The government is changing the rules on which cars need insurance cover from April, in a bid to protect road users from uninsured drivers.

Under the new Continuous Insurance Enforcement (CIE) rules, anyone who is the registered owner of a vehicle which has not been declared as off the road with a SORN (Statutory off Road Notification) must have valid insurance cover for it, or else pay a penalty.

This means that if you have a vehicle you no longer drive, then it must by law have either a SORN or the appropriate insurance coverage.

How can you lower insurance costs?

It may not be fair that you should have to pay for the recklessness of those who choose to drive without insurance, but there are ways you can lower your insurance costs without sacrificing appropriate cover.

Firstly, is your car as secure as it can be? Insurers set your premiums based on the likelihood that you will make a claim. The more secure your vehicle is, the less likely it is to be stolen, and that should attract lower premiums.

Installing an approved alarm and immobiliser like a Thatcham 1 or Thatcham 2 should have a positive effect on your premium. If you already have these devices, you might want to consider an industry-approved steering wheel lock.

Similarly, where you park your vehicle determines your level of risk. If you park your car in a secure location overnight, like in a locked garage, then your insurer should reward you with lower premiums.

Beyond security, you might want to consider minimising the optional extras on your policy. For example, if you have access to another vehicle, you might not need a courtesy car in the event of yours being off the road.

The fewer extras you add, the lower your premiums should be, as the insurer then has fewer obligations. Don't sacrifice cover you really need, though, as that's a false economy.