Whilst car insurance premiums have fallen for the first time in two years, the impact of rising costs year-on-year are still to hit those yet to renew their insurance in 2024.
With up to 10% of British adults not aware that motor insurance is compulsory, and an estimated 300,000 uninsured drivers on the roads every day, MIB (Motor Insurers’ Bureau) is calling on those needing to take out a new policy to make sure they remain insured, rather than face the consequences.
According to the ABI (Association of British Insurers), premiums fell by two per cent in April-June compared to the first quarter of 2024. This is the first decrease in two years.
On the face of it, this is good news. However, costs are still just £12 off the all-time high, while annual increases of up to 21% compared to 2023 renewal costs are yet to hit the wallets of those still to renew. This means around 14 million households are to be hit by a likely premium rise.
Shockingly, according to a YouGov study commissioned by MIB, 10% of the British public are not aware that motor insurance is compulsory for any vehicle used on a public road.
MIB is raising awareness of the need for continuous insurance, appropriate for the driver, vehicle and journey purpose. For those not maintaining continuous motor insurance for vehicles used on public roads, the consequences can be severe. Whilst the fixed penalty notice is £300, should the case go to court the fine is unlimited. On top of this, drivers receive six points on their licence, vehicles may be seized and even crushed, and those with endorsed licences could find they struggle during job searches and with taking out future insurance policies.
James Dalton, Chief Services Officer at MIB, said,“We know times are tough for many people right now and increased cost-of-living pressures, including motor insurance premiums, may cause more people to make the wrong decision to drive uninsured, but this is not the right way to save money.
“We are encouraging people to ensure they maintain continuous, appropriate insurance on their vehicle, whilst reminding them to look at ways to legally reduce their premiums. While we understand the challenges many are facing, our message is that driving uninsured is never worth the risk.”
