Speeding fines and car insurance: The unexpected penalty

If you’re caught speeding on today’s roads, it’s not just the fine that’ll hurt your wallet. You may also find that the cost of your car insurance goes through the roof. According to research by the AA, average drivers, with penalty points on their driving licences, may have to pay as much as 20% more on their car insurance premiums, even if it’s a first offence. The research suggested that premiums for a 25-year-old would increase by an average of £42 after one driving offence and by as much as £178 after two offences. A 40-year-old woman, meanwhile, could expect to see an average rise of £28 after one offence and £116 after two.

While some insurers may not penalise those with just three penalty points on their licenses, others take a much tougher line, considerably raising the costs of insurance cover for anyone found speeding. A spokeswoman for Esure, for instance, recently told The Guardian that analysis of more than 750,000 customers had shown that those who had committed a speeding offence in the last 12 months were 12% more likely to make a claim in the next year - sufficient foundation, it seems, for some insurers to charge such customers extra.

And for those who think they can speed and not get caught, there’s also bad news. There have never been so many sophisticated cameras working on our roads in the UK, with 36 safety camera partnerships operating cameras at 6,000 sites across Britain. It’s no surprise then that fines have also soared in recent years, with around two million drivers a year caught by speed cameras and fined. In addition, with new developments in speed camera technology, the likelihood of getting caught if you speed is getting higher.

Of course, the most obvious advice in this environment is to stick rigidly to the speed limits and drive safely. But if you have already received penalty points on your license, it’s not all bad news. Some car insurance providers are still sympathetic to a first offence, with some effectively ignoring the first speeding fine and the three penalty points when they calculate a quote (according to research by Guardian Money last year). A second speeding fine and further points may cause you more problems in finding a good car insurance quote, but it would still be worth shopping around, as some insurers may still only charge a small increase in your premiums. At nine points on your license, you may be referred for an in-depth assessment and individual underwriting decision; but if your offences are deemed relatively minor, you may still find yourself a reasonable deal. However, it is also fair to say that at this level of penalty, your search will be more difficult as you will inevitably be seen as a higher risk. Indeed, depending on the nature of your offences some insurers may refuse to provide you with cover at all.

If you have a clean license, it would be well worth you keeping it that way; your wallet will certainly be an awful lot happier. But if you have incurred penalty points, do not despair - take a little time to compare the products on offer as you should still be able to get good cover at a fair price.

**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**