An Estimated 500,000 People Have Driven In The Uk Without Insurance Over The Past 12 Months

    LONDON, ENGLAND, December 23, 2009 /24-7PressRelease/ -- Sainsbury's Car Insurance estimates that honest motorists are paying over GBP500 million a year through their car insurance premiums to pay for the cost of accidents and damage caused by uninsured drivers. With many people cutting back on insurance during the recession new research from Sainsbury's Car Insurance reveals the potential scale of the problem of people driving without cover.

The Sainsbury's Car Insurance findings reveal that over the past 12 months an estimated 516,000 people may have driven a car in the UK without insurance. The majority of these people are men, and in terms of their age most are 24 and under or over 65.
A further estimated 409,000 people may have driven abroad without insurance recently.

Of those people interviewed who have driven a car over the past year without cover, the main reasons given were because they could not afford the cost of insurance, they just forgot to buy it or that they just did not want to pay for car insurance.

Ben Tyte, Sainsbury's Car Insurance, said: "With household budgets restricted as a result of the recession it's inevitable, as our research found earlier this year, that some people will look for cheaper insurance policies or even reduce the cover they have. However, it is simply not an option to drive with no cover altogether.

"Those that do so are breaking the law and are a real menace on our roads. They cost honest motorists an extra GBP30 a year in premiums, and in a typical year, 160 people die and 23,000 are injured in accidents involving uninsured motorists.

"Having an accident with an uninsured driver can leave you with a financial headache, because although you should be covered for the cost of any repairs through a comprehensive policy you may lose your no claim discount. However, with our policy, if you have an accident with an identified uninsured driver and it's not your fault, you will still keep your no claim discount."

Sainsbury's Car Insurance's findings are alarming because rather than uninsured motorists just forgetting to buy insurance, it seems that in many cases they intentionally don't purchase it. In 2008, police seized more than 170,000 uninsured vehicles, more than a two-fold increase on the 78,000 uninsured vehicles seized in 2006. By using Automatic Number Plate Recognition (ANPR) equipment for example, the police are able to detect more uninsured motorists. This is a really positive step-change, one that Sainsbury's Car Insurance believes will eventually have a positive impact on premiums.

In addition to competitive premiums, Sainsbury's car insurance also offers motorists an extensive range of cover and benefits. This includes a courtesy car when using one of its recommended repairers (comprehensive cover only) and a no claim discount of 70% if you take out a policy and have not made a claim in the past five years, rising to 75% after a further five years' claim-free driving with Sainsbury's Car Insurance. It is also one of only a few providers to offer new-for-old replacement child car seats after an accident as a standard feature of its comprehensive policy, even when there is no perceived damage, as well as support and compensation if you're a victim of car jacking or road rage.

Sainsbury's provide a wide range of financial services including credit cards, loans, personal loans, savings account, pet insurance, life insurance, home insurance and car insurance, visit www.sainsburysbank.co.uk now to find out more.

For further information, please contact:
Phil Anderson / Sarah Rowan
Citigate Dewe Rogerson
020 7638 9571
Notes to editors:
Motor Insurers Bureau, 2009

Research for Sainsbury's Finance in February 2009 revealed that an estimated 579,000 people had given up or reduced their car insurance cover in the previous 12 months. The consumer omnibus research of 2048 GB adults aged 18 or over was carried out online by ICM between 30th January and 1st February 2009. ICM uses a large sample size that reflects the demographic profile of the UK. Given this it is possible to extrapolate figures and make projections from the research results within appropriate confidence intervals. So 5% of the UK adult population of 45.89 million is 2.3m. Figures are estimates.
Consumer omnibus research was conducted by GfK NOP. 990 people were interviewed between 10th and 12th July 2009. The consumer omnibus research conducted by GfK NOP uses a large sample size that reflects the working demographic profile of GB. Given this it is possible to extrapolate figures and make projections from the research results within appropriate confidence intervals.
(4) Motor Insurers Bureau, 2009 - http://www.mib.org.uk/NR/rdonlyres/6291A8F4-C89C-410E-B70E-166BC4C2E6EA/524/NoplacetohideforUKsuninsureddrivers.pdf
(5) Terms and conditions apply

Sainsbury's Car Insurance is arranged and administered by esure Services Limited. Registered in England No.2135610 at The Observatory, Reigate RH2 0SG. Not available in Northern Ireland or the Channel Islands. Age restrictions apply. Subject to normal acceptance criteria. Like all insurers there may be circumstances where we are unable to provide a quote. Calls may be monitored and recorded.

Sainsbury's Finance:
To view our latest press releases and product information, please visit the Sainsbury's Finance online media centre at www.sainsburysfinance.co.uk/media.

Sainsbury's was the first major British supermarket to open a bank, commencing trading in February 1997. Benefiting from a fantastic, trusted brand that enables us to combine the shopping experience with personal finance, Sainsbury's Finance provides a range of quality products including insurances, credit cards, savings and loans. Our proposition is to make shopping more rewarding by offering customers great products at fair prices, while consistently rewarding shoppers for their loyalty and being easy to do business with at all times. Our products consistently top Best Buy tables and regularly win awards for quality, price and service.

Sainsbury's Finance recent awards include Best Online Credit Card Provider / Best Direct Home Insurance Provider, Your Money 2009
Sainsbury's Finance is a joint venture between J.Sainsbury plc and Lloyds Banking Group.
For further information and general Sainsbury's Finance enquiries customers can call the freephone number on 0500 40 50 60 or visit www.sainsburysfinance.co.uk

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