March 2004

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HONEST MOTORISTS CAN PAY £400 EXTRA AFTER ACCIDENTS WITH ‘INSURANCE CHEATS’

*An accident with an uninsured driver could cost motorists £408 in policy excess and lost no claims bonus
*MORE TH>N urges Government to link databases in crack down on uninsured drivers
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Honest drivers could be faced with a triple whammy if they have an accident with an uninsured driver, warns leading insurer MORE TH>N:
1. The cost of uninsured drivers already adds £30 to an average motor premium.
But
2. An innocent driver will also still have to pay their policy excess, typically £150, with no chance of reimbursement.
Plus
3. They face the partial loss of No Claims Bonus (NCB) too – costing them around £258 in additional premium1 – if they don’t have protected bonus.

This week, the Driver and Vehicle Licensing Agency (DVLA) began a proactive approach to automatically fining motorists whose tax discs had expired at the end of December 2003. MORE TH>N is calling on the Government to back a similar initiative to catch uninsured drivers in the UK by linking the DVLA database with the Motor Insurance Database (MID)2 – a centralised system which all insurers subscribe to.

David Pitt, Head of Motor Insurance at MORE TH>N said: “Uninsured drivers are effectively ripping off the honest motorist by costing us all an extra £30 on our premiums. But the additional costs shoot up to £400 if you are unlucky enough to have an accident with an uninsured driver.

“Currently there are two databases holding information on motorists in the UK: the DVLA database records whether a vehicle is taxed and the Motor Insurance Database records whether a vehicle is insured. However, there is no way of easily checking the information on both systems.

“We are encouraging the Government to sponsor the linking of the centralised Motor Insurance Database with the DVLA’s tax disc enforcement scheme to enable the industry to take proactive action to identify and target uninsured motorists.”

MORE TH>N is the first insurer in the UK to allow drivers to protect their no claims bonus for life regardless of the number of claims they make3. There is no catch – for a small cost (average £25) – their maximum no claim bonus will never be reduced and their premium won’t be affected by any claims they make, even those involving uninsured drivers.

For more information on MORE TH>N motor insurance customers should contact 0800 300 220 or visit www.morethan.com/car.

Ends

Notes to Editors:

1. Traditionally most insurance companies reduce a customer’s no claims bonus by two years after a claim. According to MORE TH>N’s figures an average driver would pay an extra £258 in additional premium during the two years they were building back their maximum no claims bonus.

2. The Motor Insurance Database is a database holding basic details of all UK motor insurance policies that are in force and is contributed to and updated by all UK motor insurers. The database is available for use by the police to check that valid insurance cover is held.

3. MORE TH>N’s Maximum no claims bonus for life is available to new customers with four years’ no claims bonus, who have made no more than two ‘not at fault’ claims or one ‘at fault’ claim in the last five years.

About MORE TH>N:
MORE TH>N is the direct financial services arm of Royal & Sun Alliance. It offers motor, home, pet, travel, life as well as a credit card via the internet and by phone.

For further information:
Claire Allen
MORE TH>N Press Office
Tel: 020 7337 5602
Email: claire.allen@uk.royalsun.com

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