AA Reports Money Misery For Mobile Phone Using Motorists
While those illegally using a mobile phone while driving on the road will face being fined, such an offence may only be the beginning of their finance-related motoring pressures.
This is claimed by AA Insurance, when it indicated that consumers who choose flouting the law by talking on a mobile phone while at the wheel will be stung with a fixed-penalty notice of 60 pounds. Although some people may think that this punishment is sufficient in itself, for those using a mobile phone while driving the financial services firm implied that such drivers will incur higher motor insurance premiums. It was also claimed that drivers who are guilty of using a mobile phone while driving will find that their insurance costs will rise by on average 40 pounds over the course of a year - with increases over the 3-year period that the offence lasts for indicated to be "well over" 100 pounds.
And although yearly insurance costs rising by 40 pounds is in itself a substantial rise, many motorists could find that being caught with a mobile may have even more serious financial consequences. In a panel of eight insurance providers, AA pointed out that the companies questioned may increase annual costs from anywhere between 4.2 and 18.1 per cent for those with a single mobile offence. One firm, it was also indicated, will refuse to provide cover altogether.
Following on from increased motor insurance costs, it may be possible that drivers come under further pressure to manage other spending constraints related to their vehicle such as petrol and repairs. In turn this could impact upon their capacity to handle other monetary commitments such as personal loans, credit cards and household bills.
Motorists caught using a mobile phone while at the wheel could also be charged with careless driving. Such an offence, it was claimed could lead to them being banned from driving a car. Resulting from this such consumers are likely to find that they are refused insurance cover, with half insurance companies claiming they would not offer them a policy, with the other half charging more than an extra 50 per cent.
Simon Douglas, director of AA Insurance, stated: "Driving whilst using a hand held mobile phone places you at greater risk of having an accident - it slows reactions and you are less able to control the car. Insurance companies quite rightly take such offences seriously. Many offenders are not aware of the premium rise and we hope that raising awareness of this extra cost will help people to think twice about chatting on a hand held phone when driving."
He also claimed that as a result of a road traffic accident police automatically check mobile phone records as a part of their routine investigations to see if a mobile phone played a role in the accident occurring. As a result, when drivers are either looking to take out a new policy or renew their existing one, Mr Douglas advises them to be totally honest with insurance companies when dealing with any endorsements on their licence. If this not be the case however, it was claimed that they may find that their insurance cover is not valid.
When looking to buy a new car, using a cheap loan could prove to be cost effective. By doing so, borrowers may find that they can purchase the vehicle of their dreams and are left with a lower rate of monthly repayments to make. The extra assistance a loan provides could may help when buying a comprehensive motor insurance policy. A loan for this purpose is even more useful for those wanting to buy a convertible car, after a recent study by Confused revealed that insurance for such vehicles is an average of 11 pounds more expensive than for other cars.
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