Car Insurance Goes Up with Cell Phone Convictions
Drivers in the U.K. with convictions for driving while using their cell phone could soon find their insurance premiums increasing.
An insurance company called, Allianz Insurance has begun the first automobile insurance provider to rate drivers with cell phone convictions by as much as 30 per cent. Prior this decision, insurance companies rated mobile phone driving convictions the same as minor convictions such as speeding.
However, Allianz Insurance has take the bold step of rating a driver’s cell phone conviction with the same surcharges as if it were a dangerous driving conviction, causing Car insurance quotes to increase for their customers.
A company spokesperson justified the move by stating, “Increasing premiums for drivers with mobile phone convictions reinforces the fact that this is a dangerous and needless act. If you are convicted of using a mobile phone while driving, not only do you face a fine and points on your license, you will also suffer the added financial burden of increased motor insurance.”
In the United Kingdom, the penalty for caught driving while using a cell phone is a £60 fine and three penalty points on your license. According to the English Government statistics department, if you drive and use a mobile phone, you are four times more likely to have an accident.
Furthermore, the stats suggest that young people between the ages of 17-34 year olds are twice as likely to drive while using a cell phone as people over 55, which they conclude put them at more risk.
By increasing its car insurance premiums and raising the seriousness of the offense, Allianz Insurance is not only taking steps to protect their own loss/ratio but also discourage the use of cell phones while driving.
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