Last Auto news – Cover cheat KO to cut premiums

Last Auto news – Cover cheat KO to cut premiums Insurance fines to go to address on V5C – which is being facelifted.

Are car insurance bills finally set to fall? The industry claims they are, as the Government enacts a tough new law next year to clamp down on Britain’s 1.5 million uninsured drivers.

The legislation will put the onus on the registered keeper of the vehicle to arrange cover, not only the driver. That will be enforced by a link between the Motor Insurance Database (MID) and DVLA, with the uninsured automatically fined £100.

“We could see a significant reduction in cars being driven without cover – well beyond what we see today,” said Andy Drane, head of MID Services.

“That could lead to a big cut in the subsidy the law-abiding motorist pays the cheats.” The MID estimates claims involving uninsured drivers add £30 to a motorist’s premium. A police clampdown has cut the number of uninsured drivers by 20 per cent in the last four years, with officers seizing 600,000 cars from offenders in that time.

Next year, the process will be more simple, with warnings sent to the address on the V5C logbook first, then fines. Five of the 10 worst-offending postcodes for uninsured drivers are in the West Midlands, says the MID.