This is claimed by AA Insurance, when it indicated that consumers who choose flouting the law by talking on a mobile phone while at the wheel will be stung with a fixed-penalty notice of 60 pounds. Although some people may think that this punishment is sufficient in itself, for those using a mobile phone while driving the financial services firm implied that such drivers will incur higher motor insurance premiums. It was also claimed that drivers who are guilty of using a mobile phone while driving will find that their insurance costs will rise by on average 40 pounds over the course of a year - with increases over the 3-year period that the offence lasts for indicated to be "well over" 100 pounds.

Although increasing the annual cost of insurance by 40 pounds is a substantial rise in itself , many drivers are finding that being caught with a mobile while at the wheel may lead to even more serious financial consequences. Out of a panel of 8 insurance providers, AA pointed out that the Insurance companies questioned could increase yearly insurance costs any amount between 4.2 and 18.1 per cent for those with only a single mobile phone offence. One firm also claimed, they would refuse to provide cover altogether.

Following on from increased motor insurance costs, it may be possible that drivers come under further pressure to manage other spending constraints related to their vehicle such as petrol and repairs. In turn this could impact upon their capacity to handle other monetary commitments such as personal loans, credit cards and household bills.

Consumers who use a mobile could also find themselves being charged with careless driving. An offence, it was claimed, may mean they are banned from using a car. Furthermore, such consumers may find that they are refused cover, with half of the insurance providers stating that they would not offer a premium to such a consumer, with the rest imposing increases of more than 50 per cent.

Director of AA Insurance, Simon Douglas said: "Driving whilst using a hand held mobile phone places you more at risk of being involved in an accident - it slows your reactions reactions and makes you less able to control your vehicle. Insurance companies are correct in taking such offences seriously. Most offenders are unaware of the insurance and hope that by raising awareness of this extra penalty we will force people into thinking twice about chatting on a hand held mobile while driving."

He went to assert that following a road accident police check up on mobile phone records as a part of their routine investigations to see if the device played a role in the event taking place. As a result, when drivers either have to take out cover or renew their policy, Mr Douglas urged them to be completely honest with insurance providers when asked if they have endorsements on their licence. Should this not be the case however, it was reported that they may find their insurance cover is compromised.

When looking to finance the purchase a new car, using a low cost loan could prove to be an efficient way to fund it. By using a cheap loan, borrowers may find that they can but the car of their dreams and have smaller monthly repayments to make. The extra help a loan provides could also help when buying a comprehensive insurance policy. A loan for this purpose is even more useful for those looking to purchase a soft top, after a recent study by Confused revealed that insurance for convertibles is an average of 11 pounds more expensive than it is for other cars.