We're all speeders, say insurers
THE spread of the speed camera is forcing insurers to rethink their perceptions of a typical driver. So many motorists are picking up points on their licences that underwriters can no longer afford to brand all speeders as high-risk drivers.
Comparison website confused.com found that nearly 14% of drivers looking for a motor quote carry at least one conviction on their licences, up from 9% at the end of 2003.
Adrian Webb of insurer First Alternative says: 'Insurers used to regard drivers with points and convictions as 'non-standard' but now they are becoming almost the norm. As enforcement has been stepped up, more people are being flashed and fined so insurers need to adapt their view of the ordinary driver.'
Brian Bridges, motor underwriting manager at Norwich Union, says: 'When I started in insurance, the company I worked for wouldn't take anyone with a speeding conviction. Now a single fine is pretty much insignificant.' It might increase premiums by 1-2% for younger drivers, Bridges says, but will not affect rates for older motorists.
In 2003, cameras in England and Wales trapped 1.78m speeding drivers. A further 125,000 motorists were caught jumping red traffic lights. On top of this, thousands of drivers were snapped by cameras but successfully challenged their prosecutions.
An estimated 2.5m motorists will be caught by cameras this year. Just two cameras installed at roadworks on the M4 near Bristol snapped more than 20,000 drivers during a ten-week spell this year.
A single fixed-penalty notice for speeding, which puts three points on your licence, is now unlikely to panic a motor insurer. Premiums may rise by about five per cent, though some insurers will overlook it altogether.
Andrew Blowers is chief executive of swiftcover.com, an internet-only insurer that was launched in June. 'As a new start-up, we have been able to take a fresh look at our underwriting and we do not change premiums one jot if you have a single speeding conviction,' he says. 'There is something wrong with using speed as a rating factor when people like my mother are getting caught on camera.'
However, if it happens twice your insurer will be less forgiving. Having two speeding tickets can lead to premiums rising by about 20% while three offences can raise premiums by 40 - 50% .
Webb says: 'An insurer wants to see that you have learned from your mistake, so it is less impressed by repeated offences.'
Kate Armstrong, managing director of confused.com, says: 'Not all insurers penalise drivers in the same way, which means that if you do have points on your licence, shopping around can bring some major savings.'
Sarah Adams, from Brighouse, West Yorkshire, benefited from looking around for insurance after she was caught speeding by a traffic camera van. Sarah, 22, a canine beautician, says: 'I was on a dual carriageway and thought it was a 60mph limit. In fact, it was 50mph, so I ended up with a fine and three points.
'I expected to have to pay more for insurance when I renewed, especially because of my age.' But she found that First Alternative was willing to insure her Land Rover Freelander for £750 a year - less than she was paying before.
But the willingness of insurers to overlook the occasional ticket is no speeders' charter. Motorists who are prosecuted for serious offences, including driving at extremely high speeds, will still be punished by higher premiums.
Bridges says: 'If you want to get the very best price when you buy cover, stay within the speeding limit.'
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