MPs will today debate if the actual car should be insured instead of the driver. This comes after the government received a petition with 56,000 signatures.
The UK is one of the few countries in Europe which insure the driver and not the car. This change to the UK car insurance system would bring it into line with countries such as Finland, Greece, Portugal and the USA.
As with any law change, the knock on effects will be unpredictable and for sure, not all of them will be beneficial. Will car insurance costs increase if the law is changed?
For sure insuring the car instead of the driver makes everyone’s lives easier. If the car is insured and you have a driving license you are good to go. There is no need to contact your car insurance broker to check who can drive your car and to what level of insurance they are covered by.
But if the car insurance is covering the car, will it make calculating insurance costs less accurate and therefor increase the chance that insurance policy costs will increase to cover the uncertainty?
At the moment, any changes are a long way off and the government has stated they have no intention of changing the way insurance is done in the UK.
I am not sure if the government has involved itself with insurance until now ie withe regards to the actual mechanics of the system. If not, it is the authors opinion to let the free market dictate which method of insurance gives the motorist the cheapest cover. If cheaper insurance causes a bit of inconvenience, it is probably worth the extra cost