Monday, September 22, 2008
Category:
Secured Loans
According to the Motor Insurers’ Bureau (MIB), it is estimated that 250,000 people between 17 and 20 years of age are driving with no insurance.
In fact, this group of motorists is four times over-represented when it comes to claims to the MIB. With approximately 1.25 million young people holding driving licences, this goes to show the considerable proportion that are causing accidents without insurance in place.
The MIB point out that a significant number of young people are under the impression that insurance is based on the value of a car rather than the risk profile of its driver. In addition, their research shows that one in ten young drivers do not realise that it is a legal requirement to possess motor insurance. The MIB recommend that young people build up a record of safe driving from the beginning, as no-claim bonuses and other discounts can reduce premiums by 65 percent.
With regard to police action against uninsured vehicles in the UK, it has been reported that 500 are taken off the road each day. The repercussions for driving without insurance are serious – the uninsured vehicle is seized by the police, and the driver is presented with a fine and six penalty points to boot. In order to reclaim the vehicle, the registered owner is still required to purchase motor insurance.
Chief Executive of MIB, Ashton West, commented: "Britain has one of the worst records in Europe for driving uninsured - around 5% of the population. Young people make up a significant number of uninsured drivers and with one in five newly qualified drivers having an accident in the first year of driving, they need to make choices based on the consequences of driving without insurance and not just on price alone. While we recognise the financial pressures for drivers taking to the roads for the first time, it is also a criminal offence to drive without proper insurance cover. More than £500 million in funds from law-abiding motorists are used every year to compensate people for property damage and personal injury as a result of uninsured drivers."
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Homeowners who are looking purchase an additional car for their young adult offspring, and who are looking for the finances to do so, could consider taking out a
secured loan to fund this purchase. A secured loan is one of many options to fund car purchase. A secured loan may also be considered if homeowners need to make home improvements to house additional vehicles such as extending properties to include a garage. Alternatively a secured loan for home improvements might be a consideration if homeowners need to repave front gardens or driveways in order to create a space to accommodate additional vehicles.
