| Although those illegally using a mobile phone whilst driving will be fined, this may be just the beginning of their motoring related money pressures. This is the claim of AA Insurance, who highlighted that consumers who choose flouting the law by talking on the phone while driving will be fined with a fixed-penalty notice of 60 pounds. And although some people may think that this punishment is enough in itself, for those using a mobile while in motion the financial services firm implied that such drivers will be charged higher motor insurance premiums. It was also indicated that drivers who are guilty of using a mobile phone while behind the wheel will discover their insurance costs rise by around 40 pounds over the course of 12 months - 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. Leading on from increased vehicle insurance costs, it is also possible that drivers will be exposed to more financial pressure managing other aspects related to their car such as fuel and repairs. This could have a knock on effect reducing their ability to handle other financial areas such as credit cards, personal loans 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. AA insurance director, Simon Douglas, commented: "Driving whilst holding a mobile phone puts you more at risk of being involved in an accident - your reactions are slowed and makes controlling the car more difficult. Insurance companies have adopted a sensible attitude taking such offences seriously. A majority of offenders are unaware of the fact that their insurance will become more expensive, and are hoping that raising the awareness of this premium rise will make people think twice about using their mobile while 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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