Such is the claim of Graeme Trudgill, the technical and corporate affairs executive at the British Insurance Brokers' Association. In recent comments, he informed motorists that they are commonly spending an additional 30 pounds on their annual insurance policy to cover costs incurred by uninsured motorists. As such, unlawful drivers of this type are costing the UK public around 500 million pounds a year. He claimed that the current situation has arisen largely because of two dominant factors: high insurance costs which consumers find difficult to manage and a perception among some members of the public that they will be able to get away with driving without cover.
As the number of uninsured drivers on the roads has increased over the past few years, the knock-on financial impact for insured motorists has also grown steadily, Mr Trudgill explained.
For those who are struggling with current motoring costs, taking out a car loan may prove an effective way they can keep their vehicle insured. Furthermore, for those planning the purchase of a new motor, applying for a car loan may allow them to not only buy the car of their dreams but also make sure that it is comprehensively covered against damage as well.
Mr Trudgill warned drivers considering taking to the roads without cover that improved cooperation between police and the insurance industry meant that a growing number of motorists are paying the price for doing so.
He explained: "The police can now stop a vehicle on the road side and can see whether it's insured or not and they now have powers to seize that vehicle at the road side. Since they've had these powers they have confiscated about a quarter of a million vehicles. So recently we have managed to make a dent in the problem."
Further legislation introduced recently has also made it a crime to be in the possession of an uninsured vehicle. As such, Mr Trudgill warned: "If you own a vehicle but don't have insurance and that vehicle is on the road, then you're going to be caught."
However, despite invigorated efforts to stem the number of motorists driving without cover, the Biba spokesperson conceded that at present, it was still a "massive problem", with more than two million uninsured vehicles throughout Britain. Further research from Direct Line has shown that around one in twenty motorists currently lack cover, amounting to 1.5 million people.
For those keen to make sure they are well protected when purchasing a new vehicle, taking out a car loan may afford them the financial flexibility to take out comprehensive cover to avoid the risk of being caught out in the event of an accident. Leftover funds from a car loan may also come in handy covering other expenses such as petrol, with recent figures from uSwitch showing that UK fuel prices are the highest in Europe.
According to the firm, four districts within the capital have made it into the top ten car crime hotspots in the UK, having experienced higher levels of break-ins and thefts in the last 18 months. In fact, the three most likely areas in which residents experience such crime are all within Greater London. Drivers in such areas - and indeed elsewhere in the country - might see the benefit of investigating cheap loans to purchase security equipment over paying out for a new vehicle.
Having assessed data from 300,000 insurance claims, insurance specialist Admiral established that the postcodes with the highest level of car crime were in Hackney, followed by Clapham and Leyton. These were joined in the top ten by areas of Bristol. Edinburgh, Leeds, Liverpool, Manchester and Newcastle. Sue Longthorn, managing director of the insurance firm, states: "We expect car crime to be higher in inner city areas, but it's surprising to see that 40 per cent of the top ten are in one city, even if it is London. The sad fact is that people living in big cities are more likely to be victims of car crime."
She added that, as a rule, car crime rates were falling but that drivers should do as much as possible to ensure that they decrease still further. Recommendations from the company include not leaving the likes of CDs, satnav systems or even loose change and bags on display. Additionally, owners should not leave their keys on display within their home as, in the event of a robbery, this makes the double-whammy of additional vehicle theft even more likely. However, for those who wish to improve security to a greater degree, a garage is an enviable deterrent. There is potential that a homeowner loan could be used to fund the building of such an extension and it could provide the security of physical walls around the vehicle - possibly preventing the need for seeking out personal loans to replace a stolen car.
Sue Longthorn continued: "Last year, car crime claims fell by five per cent and more importantly, have fallen by 34 per cent over the last five years mainly due to improvements in security within the motoring industry. But you should always be aware of making things as difficult for thieves as possible by effectively securing your car and not leaving valuables on show."
Constructing a garage on your property also has the added potential to improve its value - a welcome surprise for homeowners when it comes to moving up the property ladder. Alternatively, the likes of garden improvements and home refurbishment can prove to be homeowner loans well spent. Recent research from GE Money Home Lending revealed that converting loft space into a further room can increase the value of a property by as much as 22,000 pounds.
Both Abbi Rouse & Tom Dawson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Abbi Rouse has sinced written about articles on various topics from Personal Finance, Careers and Job Hunting and Diabetes Treatment. Abbi Rouse writes for All About Loans. Our visitors can apply online for . We also specialise in. Abbi Rouse's top article generates over 49500 views. to your Favourites.
Tom Dawson has sinced written about articles on various topics from Personal Finance, Parenting and Personal Finance. Tom Dawson is the Editor in Chief for Essentially Home Loans where visitors can apply for. We also specialise in. Tom Dawson's top article generates over 74000 views. to your Favourites.