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'Illegal mobile motor users to face increased insurance costs'

(26 Feb 2007)

Going on holiday? – Get a great deal on travel insurance

Those who illegally use a mobile phone while driving are likely to find themselves with higher motor insurance costs, a car insurance provider reveals.

According to AA Car Insurance, insurers are likely to increase premiums as those found guilty of the offence are set to face fixed-penalty costs of £60 and three penalty points on their license.

Head of motor insurance Janet Pell said: "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."

An AA survey also revealed that those with speeding convictions are likely to face increased insurance costs.

In a study of eight insurers, four were found to increase their premiums by an average of 16 per cent for those with a single SP30 speeding offence.

Meanwhile, seven insurers increased their cover by a third for those drivers with two speeding offences.

According to the Association of British Insurers consumers may be able to receive more accurate insurance policies following changes to the criteria vehicles are tested on.

In January, a number of home, motor and travel insurance companies were advised by the Financial Services Authority to stop misleading consumers through their marketing campaigns.

However travel insurance advertisements were reported to be of a generally higher standard than their home and motor insurance counterparts.

© Adfero Ltd