Speeding causes higher car insurance premiums says Consumer Intelligence

Speeding causes higher car insurance premiums says Consumer Intelligence

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A new report has found that British drivers who exceed the speed limit with even a few miles per hour might see a surge in their car insurance premiums. Any motorist who receives a speeding fine, regardless of how small, could have to shell out extra money to stay on the road.

Although your insurance costs will always be negatively affected by driving convictions, even drivers who receive a FPN (Fixed Penalty Notice) after speeding will have to pay more.

The Consumer Intelligence report says that drivers who are found guilty of speeding on the motorway will have to face the biggest insurance premium increases. Motorists who are slapped with a SP50 fine for exceeding the speed limit on a motorway could expect to see their car insurance premiums increasing by 15%.

The average UK car owner with no traffic convictions has to pay around £693 for car insurance, but with an SP50 this can go up to £794. And older motorists are hit with the biggest penalties. A driver who is over 50 with a motorway speeding ticket will on average have to pay £166 more in terms of annual car insurance premiums.

Nearly 1.97m SP50 fines were issued in 2016 – an increase of 32% in five years. This is according to the latest official statistics.

With these numbers increasing nearly every year, millions of British drivers are probably adding hundreds if not thousands of pounds to their insurance bill by speeding unnecessarily.

Consumer Intelligence’s pricing specialist, John Blevins, said the study clearly showed that the cost of speeding was not merely the fine, but also the increased insurance payments. At over £100 a year extra for being fined for speeding on a motorway, he added, it was significant – particularly since insurers requested data about all convictions over the last five years.

He concluded: “Insurers understandably take the view that drivers who break the speed limit are potentially a greater risk and as a consequence put up the cost of motor insurance. Premiums may be heading down again after years of increases but drivers who break the law will not benefit from any price reductions.”

RAC says petrol price is unjustifiable

The RAC recently stated that the petrol price is too high at the moment, and that this is unjustifiable. The motoring organisation called on fuel retailers to let motorists benefit from recent drops in petrol’s wholesale price.

The RAC also said there was not a single good reason for fuel prices being as high as they currently are, and that petrol retailers should reduce retail prices by no less than 2p per litre.

A fuel retailers association, however, claimed that dollar volatility and wholesale prices had placed additional pressure on independent petrol retailers.

The first large petrol retailer to drop its prices after the RAC’s statement was Asda. The supermarket group announced that it had decided to drop the price of unleaded petrol by as much as 3p a litre, and the price of diesel by as much as 2p per litre.

The revised national maximum price means motorists will not pay over £1.28 a litre for diesel and £1.25 a litre for unleaded petrol at any of Asda’s 318 retail petrol outlets.

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