AA Reports Money Misery For Mobile Phone Using Motorists
May 27th, 2008 by Mark Dawson
While those illegally using a mobile phone while driving on the road will face being fined, such an offence may only be the beginning of their finance-related motoring pressures.
Such is the claim of AA Insurance, which it highlighted that consumers who choose to flout the law and talk on the phone while behind the wheel will be hit with a fixed-penalty notice to the tune of 60 pounds. And while some people might think that such a punishment is sufficient in itself, for those using a mobile while in motion the financial services firm indicated that such drivers will face higher motor insurance premiums. It was indicated that those drivers who are guilty of using a mobile phone while driving will discover their insurance costs rise by an average of about 40 pounds over the course of 12 months - with increases over the three-year period that the offence lasts for standing at “well over” 100 pounds.
And although yearly insurance costs rising by 40 pounds is in itself a substantial rise, many motorists could find that being caught with a mobile may have even more serious financial consequences. In a panel of eight insurance providers, AA pointed out that the companies questioned may increase annual costs from anywhere between 4.2 and 18.1 per cent for those with a single mobile offence. One firm, it was also indicated, will refuse to provide cover altogether.
Leading on from increased vehicle insurance costs, it is also possible that drivers will be exposed to more financial pressure managing other aspects related to their car such as fuel and repairs. This could have a knock on effect reducing their ability to handle other financial areas such as credit cards, personal loans and household bills.
Drivers caught driving whilst using a mobile phone could also be charged with careless driving. This offence, it was claimed could lead to a ban. On top of this such consumers could discover that they are refused insurance, with half insurance companies claiming they would not offer them a premium, with the other half charging an extra 50 per cent.
Simon Douglas, director of AA Insurance, stated: “Driving whilst using a hand held mobile phone places you at greater risk of having an accident - it slows reactions and you are less able to control the car. Insurance companies quite rightly take such offences seriously. Many offenders are not aware of the premium rise and we hope that raising awareness of this extra cost will help people to think twice about chatting on a hand held phone when driving.”
He also claimed that as a result of a road traffic accident police automatically check mobile phone records as a part of their routine investigations to see if a mobile phone played a role in the accident occurring. As a result, when drivers are either looking to take out a new policy or renew their existing one, Mr Douglas advises them to be totally honest with insurance companies when dealing with any endorsements on their licence. If this not be the case however, it was claimed that they may find that their insurance cover is not valid.
When looking to buy a new car, using a cheap loan could prove to be cost effective. By doing so, borrowers may find that they can purchase the vehicle of their dreams and are left with a lower rate of monthly repayments to make. The extra assistance a loan provides could may help when buying a comprehensive motor insurance policy. A loan for this purpose is even more useful for those wanting to buy a convertible car, after a recent study by Confused revealed that insurance for such vehicles is an average of 11 pounds more expensive than for other cars.
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