SOCA to create cheaper premiums?

Posted :08-04-2005

Car insurance premiums could become cheaper following the passing of a new government bill.

In the last week of Parliamentary activity before the general election, the Serious Organised Crime Act (SOCA) was passed, which will give the police increased powers to seize uninsured vehicles.

It will also provide police with access to the Motor Insurance Database (MID) so that uninsured drivers can be found quickly and easily.

The Association of British Insurers (ABI) is hoping that the changes will lead to cheap insurance deals for many drivers, because insurers will be able to lower premiums because of the reduced number of claims being lodged.

ABI director of general insurance Nick Starling told This is Money: "We are pleased that the government has seized the opportunity to act on what the industry has been calling for - better detection of and stiffer penalties for illegal and dangerous motorists who drive uninsured."

He added: "This Act will send out a clear message: driving without insurance is a serious and dangerous crime, which the Government, in partnership with the insurance industry and police, is determined to reduce."

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