Recession leads to increase in uninsured drivers


Recent media reports indicate that there has been an increase in uninsured drivers since the financial difficulty caused by the current recession.

The Chief Executive of the MIB (the Motor Insurers’ Bureau) has commented that although uninsured drivers are on the up, new police measures such as Automatic Number Plate Recognition and surveillance are helping to close the net on this criminal activity.

The MIB are an organisation known as the “fund of last resort” and all UK insurance companies contribute to this fund, which pays out compensation to victims of uninsured and untraced drivers’, reaching into the thousands every year. Statistics estimate that the cost of insurers’ contributions to the MIB constitutes approximately £30.00 on the annual cost of every policy of insurance in the UK.

The MIB estimate that three people per hour become victims of uninsured or untraced drivers. The inception of the Motor Insurers Database in 2000, and its use by the Police in 2006 (when it became an offence to keep an uninsured vehicle, not just to drive one), has led to a huge success in the capture of uninsured drivers and will continue to do so with increasing effectiveness.

Driving uninsured leads to an immediate six points on your licence and a fine of up to £5000.00. The MIB are concerned that in the current climate, more people will choose not to renew their insurance.

This article was written by Jo Milne, RTA Team.

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