Sainsbury's Bank car insurance finds uninsured drivers cost £600m

According to a report from Sainsbury's Bank car insurance, premiums could be reduced by around 6 per cent if it was illegal for registered vehicle owners to go without insurance.

Insured drivers pay an estimated £600 million a year in extra premiums to cover the cost of the uninsured.

Given this, combined with the fact that uninsured drivers are involved in accidents costing millions of pounds a year, the bank welcomed recent recommendations from the Association of British Insurers (ABI).

The ABI last week called for the introduction of new laws making it illegal to be the registered keeper of a vehicle without insurance. Currently, it is only illegal to drive a vehicle without cover.

The ABI's director of general insurance, Nick Starling, said: "Honest motorists will benefit from introducing this new offence. This is why we urge the Government to introduce the necessary legislation as soon as possible and to ensure that the DVLA have the necessary funding to enforce this new offence as soon as legislation is secured.

"Tackling the high level of uninsured driving will help keep premiums down for honest motorists, and make the roads safer."

Sainsbury's Bank also believes that lower premiums could help increase the number of insured drivers. In recent research by Consumer Intelligence insuring with Sainsbury's Bank could save drivers up to £180 a year.

"We believe that the cost of car insurance may be one of the factors fuelling the problem of uninsured motorists, but this does not have to be the case. Motorists can dramatically cut the cost of their cover if they are prepared to shop around," said Joanne Mallon, car insurance manager for Sainsbury's Bank.