23rd January 2007

Ringing Up the Cost of Car Insurance | Cheap Car Insurance and Home Insurance from Confused.com

As of 27th February 2007 drivers caught using a hand-held mobile phone, or those caught using a hands free set while failing to have proper control of a vehicle, will face a doubling of fines to £60, three penalty points on their licence and the possibility of huge hikes in car insurance, warns insurance search engine www.confused.com

Confused.com's research reveals that while many insurers add up to 5-7% on premiums for one conviction (equivalent to an SP30 speeding conviction), and 21% for two convictions, drivers caught with three convictions could see car insurance increases of up to 52%. With over 16% of the driving population already carrying points on their licence, the message is clear - avoid using mobiles unless you have a hands free kit and are in proper control of your vehicle.

For those unfortunate enough to pick up points on their licence, the news is not all bad as Confused.com's findings reveal that insurers vary in their approach to penalising drivers:

'Although many insurers are unlikely to increase premiums for one conviction, insurers as a whole are starting to take penalty points more seriously, leading to steep rises in premiums for those with repeat convictions', says Debra Williams, Managing Director of Confused.com.

'Although we'd staunchly advise people not to use their mobiles while driving, if you do find yourself with points on your licence, you should be sure to shop around to make sure that your car insurance does not dramatically rise.'

Confused.com, a free service to the consumer, compares prices for over 97% of the online car insurance market, and on average brings back over 20 prices from in excess of 60 providers. The service, which is real time, typically comes back with its search findings in under a couple of minutes, currently saving switchers an average of £150 on their premiums.

The following tables help to show the typical affect of penalty points on insurance in London, and the savings that can be made by shopping around for a better deal. The first is based on a 32 year old female office worker living in South West London, driving a 2004 Ford Focus LX, and shows the cost savings that can result from a thorough search of the insurance market.

Number of convictions(3 points per conviction)	Average industry Price	Best price from Confused.com	% saving
0	£374.85	£352.40	0%
1	£427.71	£352.40	14.10%
2	£484.89	£422.95	29.36%

The next table is based on a 38 year old male accountant living in North London, driving a 2004 Vauxhall Zafira Design also demonstrates the importance of shopping around if you’ve been caught by the speed camera’s since your last renewal.

Number of convictions(3 points per conviction)	Average industry Price	Best price from Confused.com	% saving
0	£500.98	£401.66	0%
1	£543.26	£465.60	8.44%
2	£621.39	£538.79	24.03%

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