AA Reports Money Misery For Mobile Phone Using Motorists

While those who illegally use a mobile phone while on the road will face a fine, such an offence may just be the beginning of their money-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.

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.

Drivers caught driving whilst using a mobile phone could also be charged with careless driving. This offence, it was claimed could lead to a ban. On top of this such consumers could discover that they are refused insurance, with half insurance companies claiming they would not offer them a premium, with the other half charging an extra 50 per cent.

AA insurance director, Simon Douglas, commented: "Driving whilst holding a mobile phone puts you more at risk of being involved in an accident - your reactions are slowed and makes controlling the car more difficult. Insurance companies have adopted a sensible attitude taking such offences seriously. A majority of offenders are unaware of the fact that their insurance will become more expensive, and are hoping that raising the awareness of this premium rise will make people think twice about using their mobile while driving."

He also added that the police check mobile phone records following on from a road traffic accident, as part of their routine investigations, to see if the phone played a part in the accident. Resulting from this Mr Douglas advised drivers to be honest about any endorsements when renewing their insurance cover. Any inaccuracies could render their policy void.

When on the lookout to buy a new car, obtaining a cheap loan could prove to be effective. By doing so, consumers could find that they able to purchase the vehicle of their dreams and are left with an affordable rate of monthly repayments to make. The additional assistance a loan provides could also help with the purchasing of a comprehensive car insurance policy. A loan for this purpose could be of particular assistance to those wanting to purchase a convertible car, after a recent Confused study revealed that insurance for such models is an average of 11 pounds more expensive than other kinds of vehicle.