MIB calls on drivers to take out insurance

24/09/2009

Many Britons might be avoiding taking out car insurance because they are feeling the pinch in the recession, the Motor Insurers' Bureau (MIB) has suggested.

The organisation has launched a new awareness campaign on the issue - and says that around 1.7 million of the nation's 30 million motorists are driving while uninsured.

Under UK law, not taking out the cover is a criminal offence - with punishment for those caught ranging from a £200 fine to vehicle scrappage.

Accidents caused by uninsured drivers are also thought to lead to higher premiums for law-abiding motorists.

Ashton West, chief executive of MIB, commented: "In these times of economic uncertainty, it is no surprise that people are looking to cut back on spending wherever possible.

Kevin Still, EuroDebt director, added: "EuroDebt routinely see people starting Debt Management Plans or an IVA where they have dropped critical insurances, including motor insurance. Pressure from unsecured creditors can lead to people stopping payments where nobody is chasing them.

"This can include life insurance, payment protection and general insurance products like contents insurance. These would generally be re-prioritised by EuroDebt after completing a Financial Planner, especially where the insurance is a legal requirement."

Further findings from the MIB show that only seven per cent of Britain's motorists know about the possible legal consequences of driving while uninsured.

Around one in ten 18 to 24-year-olds are also thought to not know that taking out insurance is a legal requirement for all drivers.

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