Road safety and its influence on car insurance

There is no shortage of advice online about how to find cheap car insurance quotes and reduce your premiums – but perhaps the most significant way to earn an affordable deal that also has a host of additional benefits, is to focus on road safety.

The importance of road safety

Statistics from the Department of Transport issued at the end of the second quarter of 2010 suggested we are gradually becoming safer drivers.

It reports that fatalities in road accidents were down 19 per cent for the 12 months ending June 2010 compared to the previous 12 months. Indeed, total casualties were down three per cent; while those killed or seriously injured were down by seven per cent.

However, even one fatality or serious injury is one too many and there is still a long way to go towards winning the battle for road safety. For example, figures revealed by road safety charity Brake in November 2010 showed that more than half of 500 youngsters polled, aged between nine and 13, reported they had a near miss in traffic with almost 90 per cent thinking that drivers go too fast around their homes and schools.

How does this affect car insurance premiums?

At the end of the third quarter of 2010, the AA British Insurance Premium Index revealed that in the prior quarter alone, car insurance premiums had risen by 11.5 per cent. At the heart of these increases is a 51 per cent rise over the previous 12 months for drivers aged between 17 and 22. Even after shopping around for their cover, men of this age can expect to pay around £2,500 a year for their car insurance while women will pay around £1,400.

The reason young drivers are hit with such steep premiums is because of their road safety record. Statistics from the Department of Transport in 2009 show that a third of men who are killed or seriously injured on Britain’s roads are under 25, while the number of young passengers who die in car crashes exceeded the number of young drivers killed for the first time in six years. Incredibly, car crashes are now the number one killer among young people – even ahead of drug and knife crime.

Certainly, road safety isn’t the only reason why car insurance premiums are rising – an increase in the number of personal injury claims is also having a strong influence on premium increases. However, it is one of the most significant reasons leading to calls for the government and road safety campaigners to take measures to stop this disturbing trend.

How road safety affects individual car insurance premiums

Its one thing to know that road safety is affecting car insurance premiums overall – but it’s always more striking when it affects us individually.

Fortunately, the majority of car insurance providers now offer a direct incentive to help us avoid accidents in the form of the no-claims bonus.

A no-claims bonus is effectively a reward for people who do not make a claim on their policy – and so by avoiding accidents you are more likely to earn this reward. Depending on the individual insurer, your bonus could be worth as much as 60 per cent off your premiums after four or more years. Significantly however, the discount is a “no claims” bonus and not a “no blame” bonus. In other words, you will normally lose a percentage of your discount for any claim you make even if you weren’t at fault, unless the insurer is able to recover its costs from the third party.

It’s not just avoiding claims that will influence your premiums – good driving in general should also earn rewards. For example, several insurers offer discounts to drivers who complete an advanced driving course. Depending on the insurer, completing the Pass Plus scheme, for example, could reduce premiums by as much as 35 per cent for new drivers.

Steering clear of motoring convictions will also help you save. Insurers take into account your driving history when assessing premiums – and two or more speeding offences on your record could see your premiums rise by as much as 74 per cent.

Tips for safe driving

Here are some tips to help you drive safely and potentially reduce car insurance premiums:

- Avoid driving when tired: Driving when tired can be as dangerous as drink-driving so if you are on a long journey then try to plan for taking 15minute rest breaks at least once every two hours.

- Don’t talk on a mobile: It is now an offence to drive while using a mobile phone and being caught could lead to a motoring conviction and increased car insurance premiums. Hands-free kits are legal but it is better to simply pull over safely when you need to use the phone.

- Keep your distance: Leave at least a two-second gap between you and the vehicle in front in case a car needs to stop suddenly.

- Never drink and drive: More than 3,000 people are killed or seriously injured every year because of drink driving collisions. Drinking alcohol reduces reaction times so stick to the legal limit which is 80mg per 100ml of blood in the UK.

- Stop to eat: Don’t be tempted to eat or drink while driving as you are twice as likely to be involved in an accident. Pull over and take a break if you need to eat.