Car Insurance

With the end of the UK Road Tax Disc, will road tax avoidance become as big as car insurance avoidance?

In the UK it is a lawful requirement to provide both road tax, and car insurance for ones vehicle. Now, with road tax discs being phased out in favour of online electronic payment, will road tax dodgers become as prevalent as vehicle insurance dodgers?


Drivers caught without valid motor insurance in the UK, face their car being impounded and crushed, if the insurance isn’t paid. This though, still doesn’t stop an estimated one-million drivers from failing to insure their vehicles.

Accidents caused by uninsured drivers, and the subsequent costs, have been put by some organisations as high as 380-million GBP’s a year. That equates to a massive 33GBP added to each new motor insurance policy.


UK drivers are the worst in Europe for car insurance evasion. With 1 in 25 drivers in the UK driving while uninsured; the figure is 1 in 500 in Germany, and 1 in 1,000 in Sweden.

The majority of offenders are young 17-25 years old drivers. However, the average cost of a young driver insuring a car is over 1,200 GBP, a situation which has some bearing on why they are prepared to take the risk.

Driving without motor insurance in the UK is fiercely criticised by law abiding drivers with over 50% saying those caught should face a prison term.


With the arguments regarding the new road tax payment scheme rumbling on, the UK Competition and Markets Authority (CMA) has said deals between comparison websites and insurance companies are to be banned. 90% of today’s motor insurance is conducted through price comparison websites; the competition authority maintains.

Exclusive deals, where insurance companies aren’t allowed to promote their products cheaper, on their own site, helps keep motor insurance costs artificially high. This current pricing strategy is estimated to add an extra 20GBP to the average new insurance policy.