BIBA welcomes new motor car insurance legislation

One organisation has recently welcomed new governmental legislation concerning motor car insurance in the UK.

The coalition government of the UK has recently set out new policies that will criminalise the possessing of a vehicle that does not possess breakdown car cover.  Prior to the change regulations stipulated that cars may still be owned without yearly discount car insurance cover as long as they were kept off the road, which has led to irresponsible motorists in the UK participating in driving without insurance cover.

This new parliamentary measure, part and parcel to the newly amended UK Continuous Insurance Enforcement regulations, has been welcomed by the British Insurance Brokers’ Association.  The organisation, which represents the interests of several car insurance groups, expressed its delight at the new regulations as they have been lobbying for their introduction for over six years.

BIBA also commented that the new regulations will work to create a system that will be more fair towards responsible motorists.  Currently car insurance rates are approximately £30 higher every year due to the costs that uninsured drivers incur in car crashes.

Industry experts have been mostly positive in regards to the new regulations.  Motor Insurers’ Bureau chief executive Ashton West has indicated in a recent interview that the new measures will make it even harder for uninsured drivers in the UK to continue to operate.  Mr West declared that soon such drivers will be left with no places to hide.

According to estimates released by the government an approximate 1.5 million motorists drive while uninsured in the UK.  The annual cost to the country amounts to around £500 million, sources say.

The new regulations are poised to go into effect this coming spring under the Statuary Off Road Notification clause in the Continuous Insurance Enforcement regulations.

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