Penalty points add pounds to insurance policies, study reveals

Getting just three penalty points can push up your car insurance costs by around five per cent, new research has found.

Indeed, according to this latest study, Brits pay an additional £132 million a year as they are penalised by insurers for getting points for minor misdemeanours such as going over the speed limit.

Moreover, many drivers are paying significantly more for their obligatory cover, with ten points on a licence now causing premiums to rise by around 80 per cent, potentially costing a careless drivers hundreds of pounds a year.

Dangerous driving can cost money, expert warns

Commenting on the findings, the Institute of Advanced Motoring (IAM), which carried out the study in partnership with MoneySuperMarket, noted that points equal pounds, meaning it's now more important than ever to stick to the rules of the road.

"If people don't understand the safety dangers of the offence they have committed which has earned them the penalty points, they should certainly understand the damage it will do to their bank balances," explained the organisation's chief executive Sarah Sillars.

"And someone with multiple points and fines is paying through the nose for car insurance; just think what other things they could use that money for. Driving safely could put thousands back into your pocket."

Perhaps unsurprisingly, the same study also found that Londoners tend to pay the most for getting points on their licenses.

At the other end of the scale, drivers in Manchester and Swansea tend to pay the least for breaking the highway code.

This comes soon after it was revealed that older drivers, though they are often the safest, are often paying over-the-odds for their cover.

In particular, insurers specialising in providing cover for the over-50s tend to be the worst when it comes to over-charging for basic cover, with older drivers urged to shop around to be sure they are getting the best deal.
 
 

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