Insurer Tries to Pull a Fast One Over Speeding

A major insurance firm is asking van and car drivers if they have attended a police speed awareness – and hikes the cost of their cover if they admit they were caught speeding.

Admiral is sticking an average extra £60 – £80 on to the cost of insurance for many drivers who admit going on the course.

The firm argues that although the driver does not receive any fine or penalty points for speeding, the course is simply an alternative to the conviction and should be declared as such by the driver.

However, police and course instructors make clear to drivers that attendance will not be reported to a car insurer – with several forces advertising the courses promising insurance costs will not be affected if they sign up for the course.

The Insurance Blogger has raised this issue before – that thousands of drivers get cheap car and van insurance because they do not have to tell their insurers that they were caught for speeding if they opt to pay to go on the course.

The police have a moral and ethical dilemma – should they tell insurers about drivers caught for speeding or carry on turning a blind eye?

The police say their research shows that around 99% of motorists change their driving habits after the course, while Admiral claims drivers trapped for speeding are a higher risk and should pay more for their cover.

In the past two years, around 1.2 million drivers caught speeding have taken the course – which at an average premium hike of £60 would have raised an extra £72 million revenue for insurance companies.

“The course replaces penalty points, but the person involved has still committed a speeding offence. Our claims statistics show that drivers caught speeding could be a higher risk than other drivers,” said an Admiral spokesman.

“Drivers attending a speed awareness course are more likely to make a claim and we price these risks accordingly.”

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