[article] Insurance disks for the UK?

mike65

This from bbc online.

Calls to introduce car insurance discs to cut the number of motorists driving illegally, has been met with resistance from motoring groups.

There are 1.2m motorists in the UK driving without insurance. And research has shown that these people are more likely to speed and to cause accidents.

If you are hit by an uninsured driver, you have to pursue your claim through the Motor Insurance Bureau - a guarantee fund - paid for by the insurance companies.

The AA, the UK's biggest motoring organisation, estimates this subsidy costs the average policyholder an extra £35 every year.

However, the number of claims is growing so fast, the AA has warned that premiums could rise sharply.

As a result of this, the idea of displaying car insurance on a disc in the windscreen has been proposed.

Pressure

Labour MP Andy Burnham, who has submitted the proposal through a private members bill, told BBC Radio 4's Money Box:

"It is the same principle as the tax disc. It immediately identifies those who are breaking the law, but it also puts pressure on each individual to make sure their insurance is up to date."

But the AA has criticised the plans.

Geoff Hoyle is General Manager of Insurance at the AA. He said:

"At the moment within the UK, the driver is the insured person.

"A vehicle displaying a windscreen insurance disc... is not clear evidence that the driver of that vehicle is the person entitled to drive... [Also] there could be fraud."

The hope that insurance discs may stem the rising cost of cover is also not certain.

Shortfall

Some say that insuring the car for a flat rate, instead of the driver according to risk, may mean a drop in revenue for the insurance companies, who might be tempted to put prices up if they see their income falling.

Abbey Jones, Consumer Editor at What Car magazine, explained:

"At the moment, you can have multiple drivers driving one car. If it was just the insurance of the vehicle that was covered, there would probably be a huge shortfall in the amount of money available for things like personal injury claims cover.

"And even NHS expenses... The money would have to come from somewhere. So premiums would go up."

An independent report from Nottingham University on the idea of insurance discs is due later this year.

MP Andy Burnham, says he is confident of cross-party support for his bill, which will be considered for a second reading in March.

Mike.

Capt'n Midnight

All they need to do is look here and see how displaying insurance disks has solved the problem of people driving without insurance :rolleyes:

mike65

They'd proberly enforce the law over there.

Mike.

sceptre

There are 1.2m motorists in the UK driving without insurance.

Holy moly.

mike65

.....which they are not doing right now!