Research shows 59 percent of drivers are unaware of new car insurance ruling
Many drivers across the UK remain unaware that it will be compulsory to have car insurance on all vehicles under their ownership in the near future, new research has shown.Earlier this week (April 18t...
Earlier this week (April 18th), road safety minister Mike Penning laid the final regulations of the Continuous Insurance Enforcement (CIE) in parliament, which means that it will be a criminal offence to keep a vehicle without breakdown car cover, rather that just to drive while not possessing a policy.
However, a study conducted by the AA among its members has shown that some 59 per cent had not heard of the new statutory requirement to have an annual insurance package.
According to the study, of those who knew of the ruling, 38 per cent indicated they did not understand its intricacies.
Fines will be put into force for those that fail to abide by the new rules, which will require anyone that owns a vehicle to ensure it is insured, regardless of whether it is actually used.
Simon Douglas, director of AA Insurance, noted: "This tough action is to be welcomed but it is vital that the government undertakes a campaign to increase awareness."
Meanwhile, new research has shown that car insurance premiums are climbing.
Consumers hoping to take out home insurance or breakdown car cover seem likely to struggle to access products with competitive rates in the near future, new research has suggested.
According to a study published in April 2011 by the AA, home and car insurance rates are both continuing to increase in the UK in the aftermath of the global economic downturn.
Experts believe that the rapidly increasing cost of insurance is also thanks to the current claims culture whereby customers are pushed to claim the maximum possible amount, sometimes exaggerating the circumstances in order to increase the payout.
The latest AA British Insurance Premium Index has shown that the average 'shop-around' premiums on annual vehicle cover went up by 40 per cent in the 12-month period ending in March 2011.
This represents the largest ever annual increase recorded by the survey since its inception in 1994, but the company maintains that this trend is unlikely to continue throughout the remainder of the year.
Simon Douglas, director of AA Insurance, noted that "spiralling" premiums and "record rises in fuel costs" are "making driving unaffordable for many".
This follows on from the government's publication of a report aimed at reducing fraud in the car insurance market.
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