Not all speeders are high risk drivers say insurers

Mon, 03 Oct 2005

With the rise in numbers of speed cameras, insurers are rethinking what their perceptions are of a typical driver. This is because too many drivers are gaining points on their licences and insurance underwriters cannot afford to label all speeding drivers as high risk.

Comparison website www.confused.com revealed that 14 per cent of drivers seeking a car insurance quote have one conviction at least on their licence. This figure is up by 9 per cent compared to the end of 2003.

Adrian Webb of First Alternative insurance says: "Insurers used to regard drivers with points and convictions as 'non-standard' but now they are becoming almost the norm. As enforcement has been stepped up, more people are being flashed and fined so insurers need to adapt their view of the ordinary driver."

Brian Bridges, motor underwriting manager at Norwich Union, says: "When I started in insurance, the company I worked for wouldn't take anyone with a speeding conviction. Now a single fine is pretty much insignificant." It may affect premiums by 1-2 per cent rise for younger drivers, Bridges says, but will not affect rates for older motorists.

In 2003 speed cameras trapped 1.78 million drivers in England and Wales. Another 125,000 motorists were caught going through red lights. In addition to this, thousands were caught by cameras but their prosecution were successfully challenged.

In 2005, it is estimated that 2.5 million motorists will be caught by cameras this year. On the M4 near Bristol, two cameras were installed by the road works. These cameras have caught more than 20,000 speeding drivers in a period of ten weeks.

Now that three points are added to your licence for a single fixed penalty speeding notice, this will not unduly worry an insurance company. The knock on effect will be that some insurance companies will put premiums by about five per cent.

Andrew Blowers is chief executive of an internet-only insurer www.swiftcover.com launched in June. He said, "As a new start-up, we have been able to take a fresh look at our underwriting and we do not change premiums one jot if you have a single speeding conviction. There is something wrong with using speed as a rating factor when people like my mother are getting caught on camera."

If you get caught once you may be forgiven but twice is a different matter. Your premiums can rise by up to 20 per cent. Three offences can lead to your premiums rising by 40 – 50 per cent.

Adrian Webb says, "An insurer wants to see that you have learned from your mistake, so it is less impressed by repeated offences."
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