A Fine is Just a Fraction of the Cost of Poor Driving

Research sponsored by motoring organisation the AA has found that insurers are increasingly likely to hike the premiums of drivers who have transgressed motoring laws.

The research shows that a driver with motorhome insurance, for example, who picks up a £60 speeding fine, will probably pay at least four times as much as that in increased insurance premiums. There is little doubt that insurers and the actuaries who work for them now calculate the risks involved in insuring motorists with driving offences under their belt, to the finest degree. The truth is that for every driving misdemeanour committed, a motorist will feel the effect in more than just a fine.

Figures show that a driver with one speeding conviction is around 11% more likely to make a claim than a motorist with a clean licence, and following on from that a driver with two convictions is around 18% more likely to make a claim than the driver with just one conviction. A driver who has been caught shooting a red light is between 20 and 25% more likely to end up calling the claims department of his insurer than someone with a long term no claims bonus. The average figures are important because they emphasise that each insurer has different customers who make different levels of claims and that is how they find a figure for the premium.

It is when statistics like these are used to calculate insurance premiums that a good insurance agent becomes invaluable. Finding the insurer that feels the red light shooter is only 20% more likely to make a claim will obviously return a cheaper quote than the insurers who regard the driver as 25% more likely to claim. It is the story of insurance and the reason why customers often get upset about the quotes they receive. In the past a driver looking for motorhome insurance would probably renew with his old insurer without even thinking. This day and age the internet has made comparing insurance quotes relatively simple and an expert can fine tune a quote to the customers benefit quite easily.

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