Any AA-insured driver involved in a non-fault collision with an uninsured driver will not suffer loss of their excess or no-claim discount.
Britain’s leading car and home insurance broker has reached agreement with all insurers on its panel that AA customers won’t lose their no-claim discount or excess following a crash involving an uninsured driver.
It’s believed that the AA is the first major broker to offer an ‘uninsured driver promise’, regardless of the cost of damage or personal injury compensation to customers.
This announcement comes at a time when crashes involving uninsured drivers are costing the insurance industry around £380 million per year. According to the Motor Insurers’ Bureau (MIB), around 1 out of every 25 drivers on Britain’s roads has no insurance.
Simon Douglas, director of AA Insurance, says: “Every year, uninsured drivers kill 160 and injure 23,000 innocent people.
“And although the number of uninsured drivers is thankfully falling thanks to the introduction of Continuous Insurance Enforcement last year, the chances of being hit by an uninsured driver in Britain are still higher than almost anywhere else in Europe.
“The likelihood of a successful recovery of damages from an uninsured driver is extremely low. They are often unemployed or on very low incomes, and frequently associated with other criminal activities.
“What’s more, because offenders are means-tested the average penalty meted out by courts is just £200.”
While pointing out that it is a ‘no-claim’ not a ‘no-blame’ discount, Mr Douglas adds: “It seems unfair that the innocent party should end up paying the penalty of a lost no-claim discount, which could be much greater than the penalty suffered by the uninsured driver, until such time as compensation is met through the MIB when a lost no-claim discount would be normally be ; restored.
“I’m very glad, on behalf of our customers, that we have been able to secure this agreement.”
The AA has consistently called on the Government to impose much more harsh penalties on uninsured drivers that should at least reflect the premium they would pay were they honest drivers and could include, for repeat offenders, custodial sentences.
It is estimated that the cost of compensating the victims of uninsured drivers through the MIB adds £33 to the cost of every honestly-bought car insurance policy.
