Plan Insurance Blog

50% rise in fixed penalties, but is it all bad?

The government is considering a proposal to increase the fixed penalty fine on certain motoring offences.

However it’s not all bad news for the motorist, as there are also plans to increase the number of educational awareness courses for offenders, much like the current speed awareness and drink drive awareness courses.
Transport minister Mike Penning has written a statement to Parliament stating:

We will also be consulting on raising the level of many motoring fixed penalty notices, including increasing the penalty levels for many, usually endorsable, road traffic £60 FPN offences to £90. We have broadened the scope of the measure and are consulting on other options including, increasing the levels for non-endorsable offences, motor insurance offences, and graduated fixed penalties – all by a similar proportion.

This may coincide with the soon to be increased national speed limit from 70 to 80mph; however there is also talk of reducing the ‘margin for error’, as speed sensing equipment becomes ever more accurate. This could lead to increased insurance premiums which for once; can’t be aimed at the responsibility of the insurance companies!
Here at Plan Insurance, having 3 points on a motor trade insurance policy doesn’t actually alter the premium, however anymore than that and rates start to slowly creep up as our underwriting trade partners consider this a higher risk.
In the opinion of this blogger, the proposed increase of £30 is not really something to be overly concerned about in itself, the average motorist collects 3 points every 3 years, so this increase will cost an extra £10 per year per person on average.
The real concern should be at the possible reduction in the ‘margin for error’, which will mean the possibility of more motorists getting caught, however on the flip side these extra courses being offered may offset that.
It’s all swings and roundabouts as they say.