Car insurance prices impacted by speeding convictions
Published: 13th October 2011
Category: Statistics & Research
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Motorist’s car insurance premiums could increase by up to 54% on the back of a speed conviction according to research by MoneySupermarket.com.
The price comparison website has found that on top of the initial speeding fine, motorists will also be forced to pay higher car insurance premiums which may well exceed the initial financial penalty.
A fixed penalty notification will likely result in drivers receiving a £60 fine and possibly having 3 to 6 points added to their licence. However, contrary to popular opinion it is actually the penalty points which are the bigger financial impediment.
A 30 year old male driving 10,000 miles per year in a Ford Focus could expect their premiums to rise by 19% on the back of such a conviction according to the research. With the average motorist now paying £892 per year for car insurance according to the AA, this would see the convicted driver’s car insurance premiums rise by £169.48 per year as a result of the speeding offence.
Drivers with over nine points on their licence have been found to be particularly badly targeted by car insurance companies. This is due to them being perceived as being statistically more likely to be involved in an accident and make a claim than drivers with fewer points on their licence, or none at all.
The same 30 year old male driver would potentially see their premiums go up by 54% per year if nine points had been added to their licence.
Young drivers would be even more severely affected by a speed conviction, with drivers under the age of 21 with a clear driving history now struggling to find car insurance deals for less than £2,000.
Steve Sweeney, head of motor insurance at MoneySupermarket.com commented: “The cost of car insurance can be high enough for young men, but added to that, speeding convictions can mean points on your licence and can potentially double your insurance premium.”
“There is an even greater need to compare prices if you have a speeding conviction. Although about a third of providers will not increase the premium for one blemish on your record, serial speeders will find fewer providers willing to insure them and at increased prices.”
Information sourced in part or in full from: MoneySupermarket.com
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