Insurance Premiums and points on licence

[chrispy porker]

Can anyone explain why insurance companies tend to increase premiums for those with speeding convictions ? A simple question but one that has been puzzling me for some time.

[randlemarcus]

Because you break the law, and are thus statistically likely to deliberately use you car to ram raid Dixons, causing chassis twist, then run the car over a bus queue full of schoolchildren, causing millions of pounds of third party claims?

Or, perhaps because they , like the dog, can,and therefore do?

Hmmm...

[rewc]

Money. It is all part of the gravy train, even the chancellor gets a little bit more in insurance tax .

[Jewhoo]

They use it as an indicator of potential liability so they can discriminate more efficiently (at last, my degree proves useful ). The theory goes that you're more likely to have a claim if you've got points because, as we all know, if you break the speed limit, you are dangerous.

It comes from reports like this

www.safespeedforlife.com/download/Effects_of_Speed_cameras.pdf

>> Edited by Jewhoo on Saturday 28th May 10:44

[chrispy porker]

Yes but IF one or a few insurance companies bucked the trend and did not increase premiums surely they would generate more business in what is a very competitive market.?

[blueyes]

Jewhoo said:

They use it as an indicator of potential liability so they can discriminate more efficiently (at last, my degree proves useful ). The theory goes that you're more likely to have a claim if you've got points because, as we all know, if you break the speed limit, you are dangerous. It comes from reports like this <a href="www.safespeedforlife.com/download/Effects_of_Speed_cameras.pdf">www.safespeedforlife.com/download/Effects_of_Speed_cameras.pdf</a> >> Edited by Jewhoo on Saturday 28th May 10:44

On the other hand, if you were on 9 points I think you'd drive much slower (which, according to them, MUST make it safer) so you should get a discount.

More chance of Fatty Prescott giving up pies.

[duart]

One highly sensible insurance company does not load for speeding convictions unless you received adriving ban.They are Liverpool Victoria/Frizzells.

Another whose loading is much less thanmost others is Highway.They only deal via brokers so try motorquotedirect

[outnumbered]

In the next few years, as more&more people acquire 3 points for doing 71mph on a clear motorway, I would expect market forces to come into effect and reduce or eliminate any loading of premium for SP30s and the like.

[mybrainhurts]

They used to disregard two speeding convictions.

Now, they milk 'em dry......

Government should prohibit such abuse.

[james_j]

Insurance companies know that it's mostly the safer drivers who are being caught, the ones with the lowest premiums. (i.e. not the elderly or the under 25s.)

Therefore, any excuse to increase your premium will be utilized.