Money Misery For Mobile Phone Using Motorists Say AA
May 27, 2008 – 1:57 pmWhile those who illegally use a mobile phone while on the road will face a fine, such an offence may just be the beginning of their money-related motoring pressures.
This is claimed by AA Insurance, when it indicated that consumers who choose flouting the law by talking on a mobile phone while at the wheel will be stung with a fixed-penalty notice of 60 pounds. Although some people may think that this punishment is sufficient in itself, for those using a mobile phone while driving the financial services firm implied that such drivers will incur higher motor insurance premiums. It was also claimed that drivers who are guilty of using a mobile phone while driving will find that their insurance costs will rise by on average 40 pounds over the course of a year - with increases over the 3-year period that the offence lasts for indicated to be “well over” 100 pounds.
Although rising the annual cost of insurance by 40 pounds is in itself a substantial rise, many drivers could discover that being caught with a mobile while driving may have even more serious financial consequences. Out of a panel of 8 insurance companies, AA pointed out that the providers questioned may increase yearly costs anywhere between 4.2 and 18.1 per cent for those with just 1 mobile offence. One firm, it was also claimed, will refuse to provide cover altogether.
As a result of increased car insurance costs, it is also possible that drivers will come under more pressure to manage other aspects related to their vehicle such as fuel and repairs. This could in turn have an impact on their ability to handle other financial commitments such as credit cards, personal loans and household bills.
Motorists caught using a mobile phone while at the wheel could also be charged with careless driving. Such an offence, it was claimed could lead to them being banned from driving a car. Resulting from this such consumers are likely to find that they are refused insurance cover, with half insurance companies claiming they would not offer them a policy, with the other half charging more than an extra 50 per cent.
AA insurance director, Simon Douglas, commented: “Driving whilst holding a mobile phone puts you more at risk of being involved in an accident - your reactions are slowed and makes controlling the car more difficult. Insurance companies have adopted a sensible attitude taking such offences seriously. A majority of offenders are unaware of the fact that their insurance will become more expensive, and are hoping that raising the awareness of this premium rise will make people think twice about using their mobile while driving.”
He also added that the police check mobile phone records following on from a road traffic accident, as part of their routine investigations, to see if the phone played a part in the accident. Resulting from this Mr Douglas advised drivers to be honest about any endorsements when renewing their insurance cover. Any inaccuracies could render their policy void.
When looking to finance the purchase a new car, using a low cost loan could prove to be an efficient way to fund it. By using a cheap loan, borrowers may find that they can but the car of their dreams and have smaller monthly repayments to make. The extra help a loan provides could also help when buying a comprehensive insurance policy. A loan for this purpose is even more useful for those looking to purchase a soft top, after a recent study by Confused revealed that insurance for convertibles is an average of 11 pounds more expensive than it is for other cars.
Tags: Cars
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