Insurers hike premiums 60% for mobile phone convictions

Insurers are cracking down on motorists who are caught using mobile phones by increasing premiums by up to 60% at renewals.

According to new AA Insurance research, all insurers on its panel including Zurich, Axa, Provident, RSA, CIS, Allianz and Lloyds of London, also now increase premiums after a first speeding conviction.

Ian Crowder of the AA said: “We have seen a sharp swing in attitude by insurers towards minor offences such as speeding of late. They used to be more relaxed about it, with most ignoring a first offence. But our latest research reveals that all are now loading premiums by up to a quarter even after a first offence.”

In a Moneysupermarket survey, conducted for the Telegraph, revealed that across the industry, twenty year-old drivers now suffer most and are likely to see the cost of cover leap by an average 22% for a three-point speeding offence. Those in their 30s can expect a 15% hike and those aged 40 and above can now expect an automatic premium increase of around 10%.

Mobile phone offenders, which can also attract just three points on a licence and a similar fine to speeding, can expect to be punished much more harshly by insurers, with premium increases of up to 60%. Some will refuse to quote at any price.

Aviva’s senior motor underwriting manager Nigel Bartram told the Telegraph: “We want to get the message across that mobile phone usage is absolutely not acceptable. Even though it may be treated by the law in a similar way to a speeding fine, we insurers view it very seriously.”

Bartram said: “Technology is constantly improving, allowing us to predict risks ever more closely.”

For example, a driver with one conviction is 40% more likely to claim than his brother with a clean licence, according to internal data at RBS Insurance, one of the UK’s largest underwriters including Direct Line and Churchill; with up to half claiming within a year of receiving their points.

As their record deteriorates, so the accident rate rises. A driver with two convictions is 18% more likely to claim than a driver with one offence. A driver with three offences is 110% more likely to claim than a driver with two.

The insurance industry is working with the licensing authorities to have direct online access to all driving records to stamp out fraud.