Motor car insurance experts say that the first speeding offence of any given driver carries the possibility of hidden costs that can be up to four times as much as the average fine of £60, as many insurers will raise car insurance rates in the aftermath of a conviction.
The discount car insurance division of the AA recently conducted research investigating the way insurers respond to motorists with driving offences, discovering that many car insurance companies will penalise their customers for being caught speeding. However, contrite motorists who decide to take speed awareness courses will not only keep their record clean but can also reduce the effective costs that are associated with their offence, the research discovered.
While insurers take a dim view of their customers being caught speeding, they have an even worse opinion on those using a smartphone to email, text, or make calls while behind the wheel. Insurance providers have been known to be quite severe with these customers, even going so far as to withdraw cover completely in some cases.
The AA’s research found that while many insurance providers had a policy of ignoring a driver’s first speeding offence in the past, this has changed drastically. Risk assessment tactics have changed, the motoring organisation said, which has led to more advanced and complex premium pricing schemes than in the past.
Insurers now typically increase a premium price after an initial speeding offence immediately, with levels returning to normal over a three-year period of time. This means that some drivers could pay more than £200 in a combination of premium increases and speeding fines.