Ministers vow uninsured driver clampdown, encourage telematics

Government ministers have come forward with renewed vows to clampdown on drivers getting behind the wheel without first taking out at least discount car insurance, and have also taken steps to encourage telematics-based motor car insurance policies as a way to control the costs of motoring in the UK, experts say.

The Department for Transport, in response to a new report from the transport select committee, announced it will begin working with the motor industry to reduce the cost and volume of whiplash claims that have been blamed for rising car insurance rates.  The report stated that increased insurance costs are one of the most significant socio-economic issues for all drivers, particularly for younger ones, who are routinely subject to eye watering premium quotes.

The DfT remarked that it was supportive of banning referral fees in cases involving personal injury and to extending the claims threshold for injuries sustained in road traffic accidents  to £25,000, up from its current £10,000 threshold.  This will result in bringing a larger number of RTA-related injuries into the protocol’s scope, leading to lessened costs through fixed legal fees.

The Secretary of State for Transport and the Prime Minister held a summit meeting at Downing Street this past February with the insurance industry, and there are plans for an additional meeting to follow up this spring.

Industry experts have said that the commitment the Government has demonstrated to improvements to road safety for younger motorists is welcome.  Encouraging telematics-based technology as an inexpensive option will also result in reduced accident rates as well, as motorists who drive more carefully will naturally be involved in accidents much less often – and the incidents that do occur are expected to be less injurious.

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