How Big a Problem are Britain’s Uninsured Road Users?

In the UK, a new law is intended to reduce insurance premiums for motorists who abide by it, and a side effect will be the confiscation of vehicles belonging to almost a million drivers who carry no insurance.

Role of the Motor Insurers’ Bureau

The bureau compensates those who suffer damage or injury in an accident with a motorist who is uninsured, and it has released an online video explaining what the consequences of operating a vehicle without insurance will be. The penalties include seizure of the car, at least six penalty points, and a possible fine of £5,000. In addition, before the vehicle can be returned, a driver has to provide proof of insurance and pay £150 in recovery fees.

The bureau also revealed that 23,000 people are injured and 160 others are killed annually by uninsured drivers, and a motorist without coverage is far more likely to disobey traffic laws, participate in criminal activity, and become involved in accidents on the road.

In the UK, a majority of uninsured drivers are young people, and it is felt that 20 percent of motorists between the ages of 17 and 20 have no insurance because of the high premiums on young drivers car insurance. Ironically, ministers agree that, in many cases, the fines they pay when they are caught because they are uninsured do not equal the applicable annual premium.

How the new program works

This is a joint effort sponsored by the Driver and Vehicle Licensing Agency (DVLA) and motor insurance companies in the UK. They will examine their respective databases and send a letter to warn those who are uninsured of a possible fine, and it may be followed by a fine of £100. If the drivers fail to heed these warnings and penalties, their vehicles will be seized and destroyed.

Why the law was enacted

Authorities feel that drastic action was necessary because the UK has more uninsured drivers than any other country in Western Europe. The new law is intended to eliminate the £30 added to drivers’ insurance premiums every year to cover the annual cost of £500 million for accidents involving drivers who have no insurance. Also, in order to be exempted from the road tax, drivers must register their cars as off-the-road vehicles.