Motorists may soon find that discount car insurance may become attainable once again if newly introduced proposals are adopted by the government, sources say.
The British Insurance Brokers’ Association recently submitted a plan consisting of eight separate points to the government to aid in combating the rocketing motor car insurance costs of which the country has been suffering lately.
BIBA corporate affairs head Graeme Trudgil recently appeared before the government’s Transport Select Committee where he stated that motorists in Britain need more aid in finding cheaper car insurance.
Mr Trudgil told the Committee that the government should be prioritising such matters as making it easier for customers to find any help they may need, enact changes in order to facilitate a reduction of the costs associated with injury claims related to motor accidents, and institute a continuous policy regarding insurance enforcement.
In order to combat those motorists who disregard official warnings for driving without any form of car insurance, Continuous Insurance Enforcement is rumoured to involve the introduction of a new penalty for such drivers.
The new policy will apply to any motor vehicle which the vehicle both neglects his duty to procure motor car insurance and does not declare it being off the road. The penalty for such behaviour could be a seizure of the vehicle by the government.
Expected to be instituted in 2011, the new scheme is being adopted with the hopes that the number of uninsured motorists on the motorways will be reduced. As the hike in car insurance rates can partially be attributed to uninsured drivers, which accounts for approximately £30 of the average driver’s premium, the new scheme could lead to lower premiums in the long run.
The BIBA has also made clear its desires for the government to take a more active role in directing motorists, especially younger motorists, to providers of affordable cover and sources of help.