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insurance with points
The true cost of an endorsement
updated
20 December 2007
More than two million motorists' driving licences will be endorsed with penalty points over the next 12 months.
We thought we'd try and work out what the real cost of those points on their licences would be to those motorists, so we undertook some research at the end of 2003 (we've since done some more - click here)with some of the online insurance providers (see the table below). We got motor insurance quotes for the same person, the same car and the same type of cover, and then simply amended the initial "clean" application to include two recent fictitious speeding offences resulting in fixed penalty punishments (SP30s with 3 points and a £60 fine in August 2002 and February 2003). We then compared the results.
|
Cheaper Insurance
for Motorists with Points We like to check the
services we recommend, so in March 2004 we compared Quoteline's quote
for a standard fully comprehensive insurance policy for a driver with 9
points on their licence (a speeder and a careless driving). |
For those of you who have completed an insurance application form, either online or off, you will know that the insurers always ask if you have had any endorsements for motoring offences within the last 5 years. Failure to disclose such a conviction could result in your insurance being invalidated. It means that any endorsement you receive will affect the insurance premium you pay every year for at least 5 years.
Our survey suggests that with two straightforward speeders (the minimum 3 points each) your motor insurance is likely to increase by between 28% - 44%. That means if you would have paid £500 per year with no convictions, you are likely to have to pay between £640 - £720 with them, and that increase will continue for as long as you have to answer "yes" to the convictions question on the insurer's application form.
As that will be for at least 5 years the total extra cost of those points on your licence, if you would have paid £500 per year, will be in the region of £700 - £1,100.
At £687 (the average comprehensive car insurance premium according to Egg) the extra cost over 5 years would be £961 - £1,511 .
If you have points on your licence it pays to use a broker to shop around for you. Try this link to Quoteline Direct, the online arm of Wilsons Insurance Group. They specialise in "non-standard" motor insurance for car drivers and bike riders.
Here's our table of results for a 42 year old male with full no claims, driving a £12,000 car for a maximum of 12,000 miles. It may be worth bearing these figures in mind when you consider whether or not it is worth asking a solicitor for help and advice. Our fixed fee motoring representation scheme offers initial telephone advice for just £40.00. It could be a good investment.
| Insurer | Clean Licence | 2 Speeders | Percentage increase |
| Direct Line | £266.70 | £346.50 | 30% |
| Advantage | £283.94 | £379.47 | 33% |
| Elephant | £295.05 | £422.65 | 43% |
| Egg | £299.25 | £388.50 | 30% |
| Admiral | £305.55 | £441.00 | 44% |
| Eagle Star | £391.44 | £502.75 | 28% |
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