Millions of Brits face higher car premiums because of an EU law forcing firms to compensate uninsured drivers if they are hit by another uninsured driver
Furious Transport Secretary Chris Grayling last night said he had no choice but to apply the Brussels diktat – but vowed the Government “will come back to this” after Brexit
MILLIONS of Brits face higher insurance bills because of “crazy” EU laws demanding uninsured drivers get compo if their cars are pranged.
Furious Transport Secretary Chris Grayling last night said he had no choice but to amend UK regulations as he was “bound” by Brussels – and Britain could be fined.
But he vowed Britain would look to scrap the rule once we complete Brexit – storming: “We will want to come back to this.”
The new rules will take effect from March and threaten to send motor premiums even higher.
Currently, a £250 million industry fund pays out nearly 30,000 compensation claims a year to motorists hit by negligent uninsured drivers.
Now the Motor Insurance Bureau (MIB) will also have to foot the bill if an uninsured drivers’ car is damaged by another motorist without insurance cover.
The £250 million comes from a near £10 a year levy on every motorist’s insurance premiums.
MIB chief technical officer Paul Ryman Tubb told the Sun: “We believe the new rule is crazy but the Government feels its hands are tied by Brussels.
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“The principle of using honest premium paying motorists money to pay for the damage to an insured drivers’ car just seems wrong.
“Our fear is that there will be more claims and as a result higher premiums.”
There are an estimated one million uninsured drivers on Britain’s roads.
And experts believe the number is rising as the cost of insurance goes sky-high.
Industry figures yesterday revealed that premiums in the final three months of 2016 were 14 per cent or £95 higher than the prior year – in part because of the Government’s new insurance premium tax.
This means the typical motor insurance policy is now £767 – the highest on record since mid-2012.
Insiders last night blamed lawyers for forcing the change by threatening to take Government to court for breaching EU motor legislation.
In a statement, Mr Grayling said: “It cannot be right that hardworking, law abiding drivers will foot the bill for the irresponsible actions of those who decide to break the law and drive without insurance.
“As a result of European law the Government is reluctantly making this change to the compensation paid out by the Motor Insurance Bureau.
“We are bound by our EU obligations. But we are leaving the European Union and we will want to come back to this.”
MIB claims that uninsured and ‘untraced’ drivers injure around 26,500 people every year and kill around 130. In 2014, 13,483 claims for ‘untraced’ drivers were made to the fund.