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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 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.

And although yearly insurance costs rising by 40 pounds is in itself a substantial rise, many motorists could find that being caught with a mobile may have even more serious financial consequences. In a panel of eight insurance providers, AA pointed out that the companies questioned may increase annual costs from anywhere between 4.2 and 18.1 per cent for those with a single mobile offence. One firm, it was also indicated, will refuse to provide cover altogether.

Leading on from increased vehicle insurance costs, it is also possible that drivers will be exposed to more financial pressure managing other aspects related to their car such as fuel and repairs. This could have a knock on effect reducing their ability to handle other financial areas such as credit cards, personal loans 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.

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.

Tags: Cars

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