Ignorance toward legal implications of car insurance
Article provided by Anniyat Hasnain, September 1, 2009 — Nowadays, a higher percentage of young drivers are unaware of the legal importance and implications of car insurance. The current local stats show that 1 out of 10 drivers are unaware of the legal importance of their vehicle insurance.
According to the statistics provided by motor insurance companies, almost a quarter million teenagers are hitting the road without insurance cover – These companies are responsible for compensating those that are hit by uninsured drivers. On the record, most uninsured accidents have the age group 17-20 involved as these motorists are not futurists. The young motorists do not realize that paying less on insurance of their vehicles would save higher costs in the accidents.
It would not be wrong to say that the escalating number of uninsured drivers is because of lack of awareness towards the legality of insurance along with outrageously high premiums.
Each year, the accidents involving the uninsured drivers cost them £500 million and an additional £30 for every car insurance policy.
The chances of uninsured drivers taking part in criminal activities, like, breaking road traffic rules or to crash their automobiles, is likely to be 5 times more than normal.
Environmental Transport Association (ETA) is of the view that the law is too flexible and lenient towards the uninsured motorists.
An ETA spokesperson explained that the police have the authority to confiscate and destroy uninsured vehicles but due to the low cost of the automobiles this restraint is not proving to be of any effect.
Every year on an estimate 23000 people are alleged and charged for driving without insurance permits/covers. If the current unemployment rate in US rises continuously until 2010, it is assumed that 1 of 10 motorists will be driving without any insurance.