AA Reports Money Misery For Mobile Phone Using Motorists

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 claimed by AA Insurance, when it indicated that consumers who choose flouting the law by talking on a mobile phone while at the wheel will be stung with a fixed-penalty notice of 60 pounds. Although some people may think that this punishment is sufficient in itself, for those using a mobile phone while driving the financial services firm implied that such drivers will incur higher motor insurance premiums. It was also claimed that drivers who are guilty of using a mobile phone while driving will find that their insurance costs will rise by on average 40 pounds over the course of a year - with increases over the 3-year period that the offence lasts for indicated to be “well over” 100 pounds.

Although rising the annual cost of insurance by 40 pounds is in itself a substantial rise, many drivers could discover that being caught with a mobile while driving may have even more serious financial consequences. Out of a panel of 8 insurance companies, AA pointed out that the providers questioned may increase yearly costs anywhere between 4.2 and 18.1 per cent for those with just 1 mobile offence. One firm, it was also claimed, will refuse to provide cover altogether.

Following on from increased motor insurance costs, it may be possible that drivers come under further pressure to manage other spending constraints related to their vehicle such as petrol and repairs. In turn this could impact upon their capacity to handle other monetary commitments such as personal loans, credit cards and household bills.

Drivers caught driving whilst using a mobile phone could also be charged with careless driving. This offence, it was claimed could lead to a ban. On top of this such consumers could discover that they are refused insurance, with half insurance companies claiming they would not offer them a premium, with the other half charging an extra 50 per cent.

Director of AA Insurance, Simon Douglas said: “Driving whilst using a hand held mobile phone places you more at risk of being involved in an accident - it slows your reactions reactions and makes you less able to control your vehicle. Insurance companies are correct in taking such offences seriously. Most offenders are unaware of the insurance and hope that by raising awareness of this extra penalty we will force people into thinking twice about chatting on a hand held 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 on the lookout to buy a new car, obtaining a cheap loan could prove to be effective. By doing so, consumers could find that they able to purchase the vehicle of their dreams and are left with an affordable rate of monthly repayments to make. The additional assistance a loan provides could also help with the purchasing of a comprehensive car insurance policy. A loan for this purpose could be of particular assistance to those wanting to purchase a convertible car, after a recent Confused study revealed that insurance for such models is an average of 11 pounds more expensive than other kinds of vehicle.