Car insurance provider rejects calls for policy reversal

Tue, 29 May 2007

A car insurance company has explained why its car insurance premiums will remain higher for motorists with points on their licence than those without.

Last week, motor insurance provider Norwich Union announced that it would not raise premiums for car insurance policyholders who receive a small number of points on their licence.

Explaining its decision at the time, the financial services provider said that so many motorists now pick up licence points for speeding or for using a mobile that it is no longer an indicator of driving proficiency.

However, a spokesperson for car insurance firm Direct Line has confirmed that his company is not planning to alter its car insurance tariffs following the move.

"We haven't made any change to our policies," he asserted.

"People with more points are more likely to have an accident . therefore they carry a greater risk and their premiums are higher."

Many car insurance customers may have received points following a recent change in the law.

On February 27th 2007, the government introduced new stricter penalties for driving with a mobile handset .

Offenders are now given a £60 fixed-penalty notice and three points on their driving licence .

add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page




Simplyhealth Dental Plan

Affordable cover from only £7.50 per month. Join now and get first month FREE

Health cover, life insurance and PMIProtect Your Health

Find Critical illness, Life and Private Medical Insurance PMI policies.

Save money on your mortgageSave on Your Mortgage

Would you like to save money on your mortgage? Fill out our quick mortgage enquiry form.