AA Reports Money Misery For Mobile Phone Using Motorists

By Mark Dawson

While those illegally using a mobile phone while driving on the road will face being fined, such an offence may only be the beginning of their finance-related motoring pressures.

This is the claim of AA Insurance, who highlighted that consumers who choose flouting the law by talking on the phone while driving will be fined with a fixed-penalty notice of 60 pounds. And although some people may think that this punishment is enough in itself, for those using a mobile while in motion the financial services firm implied that such drivers will be charged higher motor insurance premiums. It was also indicated that drivers who are guilty of using a mobile phone while behind the wheel will discover their insurance costs rise by around 40 pounds over the course of 12 months - 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.

As a result of increased car insurance costs, it is also possible that drivers will come under more pressure to manage other aspects related to their vehicle such as fuel and repairs. This could in turn have an impact on their ability to handle other financial commitments such as credit cards, personal loans and household bills.

Motorists caught using a mobile phone while at the wheel could also be charged with careless driving. Such an offence, it was claimed could lead to them being banned from driving a car. Resulting from this such consumers are likely to find that they are refused insurance cover, with half insurance companies claiming they would not offer them a policy, with the other half charging more than an extra 50 per cent.

Simon Douglas, director of AA Insurance, stated: "Driving whilst using a hand held mobile phone places you at greater risk of having an accident - it slows reactions and you are less able to control the car. Insurance companies quite rightly take such offences seriously. Many offenders are not aware of the premium rise and we hope that raising awareness of this extra cost will help people to think twice about chatting on a hand held phone when 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.