Insurers' speeding bonanza

Insurers are licking their lips at the prospects of a premium windfall, thanks to the record number of people being snapped by speed cameras.

There are more than 5,000 speed and traffic light cameras in place across the UK and their number is expected to swell as more local authorities and police forces instal them in ever larger numbers.

A survey by BBC Top Gear magazine has found more than 20% of drivers have had their licences endorsed as a result of a speeding conviction.

Some insurers have taken a sanguine approach to premiums, not boosting them until a second speeding offence. Several, however, ramp premiums immediately after just one conviction. And all insurance companies insist that motorists notify them of any speeding penalties.

Analysts estimate that the windfall from extra speeding-related premiums could cost motorists millions of pounds.

More Than is one of a handful of insurers that does not load premiums after just one speeding fine. Spokesman John Sellors says the company‘s stance is based on analysis of claims data:

?We‘ve investigated and found that people who have one conviction are no more likely to have an accident than those who don‘t have one. But once you get to two convictions, the likelihood of them being involved in an accident rises sharply. That‘s the point where we start to boost premiums.‘

The amount premiums rise varies from insurer to insurer. Several have blanket 20% rises but others say the increase depends on a range of factors, including the type of car covered, the age of the policyholder and even their occupation.

The Association of British Insurers says its members are justified in asking motorists to disclose offences for up to four years after they are committed.

Insurers who do load premiums after the first speeding offence include Admiral, Churchill, Direct Line, Axa and Privilege.

AA figures suggest that motorists with clean licences can still drive a hard bargain on their car insurance.

The launch of numerous new insurers in the UK means that average premiums this year have in fact fallen as companies undercut each other to win a slice of the fiercely-competitive market.

Motorists who stay with their insurance company year after year through some sense of loyalty will frequently find they can comfortably beat their existing premium by shopping around.