UK Motorists set to pay for uninsured drivers.

UK motorists may have to face higher increases to their premiums to help pay for uninsured drivers due to an EU ruling.

The most recent Towers Watson motor premiums survey highlights there has been a rise in premiums in the last 12 months. The transport secretary Chris Grayling said the EU ruling meant that “hardworking drivers will foot the bill for the irresponsible actions”.

This rule may change after the UK leaves the EU. At the moment, the Motor Insurers Bureau pays out compensation to motorists whose car is damaged by an uninsured drivers. However, if the claimant driver is also uninsured, the MIB doesn’t pay out.

The EU rules that uninsured victims of uninsured drivers will also be eligible for MIB payouts. The MIB receives funding from insurance companies through a £10 levy on insurance premiums. Now, there will have to be extra money raised from law abiding motorists to be able to fund the new rules when they come into force in March.

Grayling stated “It cannot be right that hardworking, law abiding drivers will foot the bill for the irresponsible actions of those who decide to break the law and drive without insurance”.

Paul Ryman-Tubb, chief technical officer at the MIB, reported to the Daily Mail “The principle of using honest premium paying motorists’ money to pay for the damage to an uninsured driver’s car seems crazy”.

What do our readers think? For more information on how Todd and Cue can help Newcastle based motor fleet owners, check out out Motor Fleet Insurance page.



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