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A drastic proposal has recently been put forward to the Government in a bid to reduce the impact and menace of uninsured drivers. The Association of British Insurers (ABI) decided to put forward the proposal to ensure that victims are properly compensated for their loss. Under the proposal, the crackdown would mean that in the event of being convicted, an uninsured driver would be forced to hand over their assets to pay for appropriate compensation. Examples of assets seized may include Hi-fi's, TV's, cars, and property.

In France the system of pursuing the uninsured driver for compensation has meant that only 3% of the driving population are uninsured. This compares to 5% in the UK.

The proposal is part of a wider ranging package which includes impounding the cars of uninsured drivers who cost the industry and the paying population around ?550 million a year. Every driver who does have insurance is currently subsidizing the uninsured driver by ?30 each year. Over 2 million people in the UK currently drive without insurance and are 9 times more likely to crash than a driver with insurance.

The ABI wants to see larger punishments handed out as the current system encourages those without suitable financial incentive to ignore car insurance. At present an uninsured driver can expect a fine of ?150 in comparison to an average car insurance premium of ?350. An ABI spokesperson said 'The prospect of losing a hi-fi or TV would have a very strong deterrent effect'.

Unless the proposal in put into action quickly UK motorists should expect to see their subsidization of uninsured drivers double by 2005 to ?60 a year!

Why is Car Insurance a Legal Requirement?

Car insurance in the UK is a compulsory purchase. You are required by law to have motor insurance to cover your liability to other road users. Car insurance originated in the field of law in 1930 when legislation was brought in requiring every person using a vehicle on the road in the UK, or permitting others to use that vehicle to have a motor insurance policy. At the very least this needs to be a third party personal injury policy. There are 3 types of car insurance.

1. Comprehensive Car Insurance
   Comprehensive car insurance provides the policyholder with comprehensive, 'all risks' cover. In its simplest terms it means that you are able to claim for any damage caused to your car, apart from those exclusions you agreed with your insurer.
2. Thirds Party Fire and Theft
   Third party only car insurance policies provide the minimum legal requirement. It is designed to protect victims of accidents in which your car is involved. A third party policy can also cover your legal fees in case you require a solicitor to represent you.
3. Third Party Only Insurance
   By law, as far as the Road Traffic Act(s) are concerned, you need to have a minimum level of car insurance. Third party only car insurance will only cover your liability to others. There is no cover for damage to yourself or your vehicle.

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