Uninsured Driving
Typically over a quarter of a million convictions are given in the UK for uninsured driving each year and this is probably only a fraction of the true number of uninsured drivers. In the past, uninsured drivers have generally only been identified when they have been stopped for other reasons, like being at the scene of an accident or due to a traffic offence being committed. The true number of uninsured drivers is estimated at 1 in 20 vehicles on the road and the cost to honest drivers is estimated at £30 on your insurance premium every year.
The cost of uninsured driving
An estimated 1 in 20 vehicles is being driven uninsured and this costs you an estimated £30 on your car insurance premium every year.
Part of your £30 goes to the Motor Insurer's Bureau which receives funding from all UK motor insurance companies as a percentage of your annual premium. This is several hundred million pounds each year. When an uninsured or untraced driver injures another person or damages their property, that other person will receive compensation from the Motor Insurers' Bureau (MIB).
The other part of your £30 comes directly from your insurance company to a claimant. Special rules under the MIB arrangements mean that the insurer of a vehicle will pay any third party claim even if technically the policyholder has breached their contract with their insurance company. There is also the requirement under the Road Traffic Act for an insurer to meet the cost of claims involving stolen vehicles if a car thief injures another person or damages their property, the insurance company for the car will pay the compensation, assuming that the driver is identified.
Reducing Uninsured Driving
You can see that there are strong incentives to reduce uninsured driving and catch and penalise the culprits. Insurance companies and the police are working hard to tackle the problem, both in identifying uninsured drivers and reducing vehicle theft.