Even though “driving without due care and attention” is an offence that over 25,000 UK drivers are guilty of committing each year – earning them a £60 fine and three penalty points – it has not been common practice for insurers to check that motorists seeking to buy or renew a car insurance premium have incurred such a conviction. That is steadily changing now, with more stringent measures being introduced by many leading insurers that effectively penalize “careless” drivers by increasing the cost of cover or refusing to provide it entirely.

Distracted behaviour while driving constitutes a CD10 offence, and as activities such as eating, drinking, changing a CD or even arguing with a passenger could all, potentially, divert attention away from driving, then there could be a sharp increase in car insurance premiums for more motorists as an increasing number of people are proved guilty. Spy camera cars may be the new way of monitoring extra-driving activities, along with police stops to hand out on-the-spot fines, and for anyone with existing driving convictions, sipping water or tuning the radio could cost them more than a massive increase in their next car insurance premium.

While it’s likely to become normal practice for an insurance company to ask questions about CD10 offences, a growing number of drivers seeking cover direct from the insurer or through comparison websites could suffer price increases of up to 40% on car insurance quotes. Others may not be able to find affordable cover at all, so insurers are being urged to offer premiums on an individual basis, which still may not provide much comfort when, in a recent survey, over half of all UK drivers have admitted to eating at the wheel!

While Germany has seen a 40% increase in new car registrations against Britain’s 30% decrease in the same year, any UK motorist with a car over 9 years old could qualify for a £2000 scrapping allowance under a proposed scheme to be announced by the Chancellor in the latest budget. China, Brazil and other European countries have also enjoyed a significant boost in car sales under similar compensation schemes, and the motor industry estimates that a demand for up to a quarter of a million new cars could be created if a parallel system is implemented in the UK.

The issue of funding the project is still subject to negotiation and reassurances are being demanded from car manufacturers that a government-backed allowance would not replace existing discounts on car sales, so even though there are finer details still being thrashed out in Whitehall, a positive result is anticipated in time for the new budget. Once agreed and finalised, the plan is to offer a voucher in return for scrapping any car over 9 years old, redeemable against a new or nearly-new model.

Fears that such proposals would ultimately benefit other car-producing countries more than the UK have been dismissed when in fact, Britain’s Society of Motor Manufacturers and Traders has been pushing for this allowance for months, criticising Whitehall’s previous reluctance to implement an incentive scheme to rival those that have already proved to have had a positive impact on the motor industry in many other countries of the world.

According to figures released by the Motor Insurer’s Bureau (MIB) and the Association of Chief Police Officers (ACPO), the number of uninsured vehicles seized in 2008 doubled compared to 2006. On a daily basis, this equates to around 460 vehicles removed from the roads of Britain.

There are several reasons for the dramatic increases; namely new legislation introduced in 2005 giving greater powers to the police to seize uninsured drivers in addition to improved database collaboration between the police and the car insurance industry, allowing greater sharing of information.

It is estimated that uninsured drivers cost every law abiding average motorist approximately £30 in additional premiums each year for the simple reason that the car insurance industry has to pick up the cost of injury claims caused by these uninsured drivers. The total cost of claims is estimated to be around £500 million.

According to additional figures collated by the MIB, uninsured drivers are statistically more likely to be involved in road traffic accidents and their actions result in thousands of injuries and deaths on Britain’s roads each year, the highest levels of uninsured driving occuring in London, Merseyside, Greater Manchester, West Midlands and West Yorkshire.