Rising premiums fuels insurance fears

Published on Friday 1 August 2008 19:47

MOTOR insurance premiums have risen by 6 per cent, raising fears of an increase in the number of uninsured motorists.

Premiums for newly qualified young drivers are up to 1,750 a year,

compared with the current 250 fine for driving without insurance.

According to comparison site comparethemarket .com, drivers in the UK pay over 500 million a year, an average of 31 each, to compensate for uninsured drivers.

Its research found that almost nine in ten motorists believe the government doesn't do enough to prevent people driving without insurance and want tougher penalties.

"The government must act to reduce the number of illegal drivers on Britain's roads through severe penalties," said Jeremy Moll, head of insurance at comparethemarket.com.

"If the number of illegal drivers decreases, the industry will have more flexibility in pricing policies for lawabiding motorists."