BY JOHN ELLIS, FINANCIAL ADVISOR
Almost half a million drivers across the country are paying hundreds – and in some cases more than a €1,000 – more than they need to on car insurance cover because they have penalty points on their licences.
According to a recent cost comparison analysis by motor insurance experts at Peopl Insurance, having three penalty points on a driving licence could push up a driver’s motor insurance premium by about 10%, while 10 penalty points could see a driver pay more than twice as much for insurance as a driver who is penalty free.
With road fatalities almost 20% higher than they were this time last year Peopl is concerned that road safety messages are simply not hitting home, and it is hoping that greater awareness of the financial implications of penalty points on a licence could deter people from bad driving behaviour.
Paul Walsh of Peopl Insurance explained: “One phone call while driving could end up costing you 10% more in motor insurance. More than half a million people (533,520) have penalty points on their licence, of which 492,244 have three penalty points or more. This comes against the backdrop of deteriorating driving behaviour over the last three years.”
Insurance companies increase premiums for drivers with three or more penalty points, though this limit can differ between providers. Many drivers do not realise how easily they can accrue three points.
The top penalty points offences include speeding, holding a mobile phone while driving, failure to obey traffic lights, driving without reasonable consideration, and driving as an unaccompanied learner driver or without a valid NCT. Most of these offences carry three penalty points, with the only exceptions being driving without reasonable consideration or driving as an unaccompanied driver, where the number of penalty points incurred is two. Even minor offences like not displaying an ‘L’ or ‘N’ plate as a learner or novice driver can earn you two points.
Keeping a clean license not only lowers insurance costs but also helps drivers avoid hefty fines that could run into the hundreds. For example, the fine for using a mobile phone while driving is €120, while the speeding fine is €160. The fine for learner or novice drivers not displaying ‘L’ or ‘N’ plates is €120.”
If you have 12 points within three years you face automatic disqualification from driving and you will struggle to get cover when the time is up as some insurers refuse to quote drivers that have been disqualified in the last seven years while others may not quote for drivers with a disqualification unless they are a current or previous customer.
People simply do not realise just how fatal a slip-up in their driving behaviour can be. For example, driving while using a mobile phone you are four times more likely to be involved in a collision, yet recent figures show there has been an increase in the numbers of people using their mobile phones while driving.
Unsafe driving can lead to lives being lost in a matter of seconds. Too many people are being killed and seriously injured on Irish roads and we all have a responsibility to play our part in stopping the upward trend in road crashes and preventing any more families from going through the trauma and heartache of losing a loved one, or having a loved one seriously injured.
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