Phone for insurance penalities

Drivers who flout the new offence of using a mobile telephone whilst driving could end up paying at four times or more more than their fixed penalty notice, through increased insurance premiums AA Insurance has warned.

The police are likely to crack down heavily on drivers who continue to use hand-held mobile phones while driving. As from 27 February 2007, the fixed penalty for use of a hand-held telephone while driving will double from £30 to £60 and will be subject to three penalty points. Now that it has become an endorseable offence, with offence code CU80, insurers are likely to take account of this when calculating premiums.

Janet Pell, head of motor insurance at AA Insurance, says: “Research shows that drivers using a mobile phone – whether it is hand-held or hands-free – are four times more likely to have an accident because their concentration on driving is halved. And those using a hand-held phone are less able to control their car if they have to take emergency action.”

Typically, an offence is likely to attract a premium increase of around £60 which will remain for three years. Explains Janet Pell: “While some insurers may ignore a first offence – as they may for a speeding (SP30) endorsement – they are likely to significantly increase premiums for a second one.

“In addition, under the Rehabilitation of Offenders Act, the offence remains on your record for five years and insurers will take account of driving infringements over that period, even though endorsements can be removed from your driving license after three years.”

In a random sample of eight insurers, AA Insurance found that four increased premiums by an average of 16 per cent for a single SP30 speeding offence. For a second offence, seven increased premiums by an average of a third (32 per cent) – while one refused cover.

“There is a direct relationship between speed and accident claims; there is also an irrefutable link between the use of mobile telephones and claims so insurers will take this issue seriously,” Janet Pell says. She adds: “And don’t even think about not telling your insurer. If your previous offence is discovered – as it will be in the event of even a no-fault accident – you could find your insurance invalidated and the company would be within its rights to withhold payment for your comprehensive cover if you are involved in an accident.

“You are risking your life and the lives of others if you use a mobile phone – whether hands-free or not – in your car. Switch it off or put it on silent while you are driving and only accept or make calls when you are safely parked, with the engine switched off.”