Car insurance news
Online car insurance customers could take out new policy
A new insurance policy has been created for motorists who could risk losing their licence by not following the rules of the road.
Roy Slater Hill, an insurance broker, has set up a company that will pay out more than £15,000 to its policy holders to cover the cost of travelling if they become banned for speeding.
Many motorists who are buying online car insurance could take up the policy as added insurance to cover themselves from losing their drivers licence in the future.
Drivers with as many as six points on their licence can take out a policy but bans for dangerous driving or drink driving are not covered under the policy.
The basic Flashguard package can cost from £5 a month, rising to £20 a month, which will allow banned drivers already covered by car insurance, to find alternative transport for up to a year.
The 56-year-old brought out the insurance policies in Scotland because of the widespread introduction of speed cameras catching out responsible drivers who may have been driving just a few miles over the limit.
He commented about the current situation and said, "People are really falling victim to this, especially now there are so many more speed cameras than there used to be. What we can do is protect people, especially if their jobs depend on being able to drive."
Many motor insurance providers have spoken out against the new insurance policy which could be seen as helping drivers who, at just a few miles over the limit, could still be a danger to pedestrians and other motorists.
Neil Greig,head of policy for the AA Scotland said, "This is not something the AA would offer. We do have concerns about this insurance giving out a bad impression. It makes people think that if you are rich enough, you can avoid the main penalty given for speeding offences."
A spokesperson for Duck2Water Car Insurance, the expert online car insurance provider commented, "To avoid losing your licence and cheap car insurance, drivers should really be sticking to the rules of the road."