While those illegally using a mobile phone while driving on the road will face being fined, such an offence may only be the beginning of their finance-related motoring pressures.

This is claimed by AA Insurance, when it indicated that consumers who choose flouting the law by talking on a mobile phone while at the wheel will be stung with a fixed-penalty notice of 60 pounds. Although some people may think that this punishment is sufficient in itself, for those using a mobile phone while driving the financial services firm implied that such drivers will incur higher motor insurance premiums. It was also claimed that drivers who are guilty of using a mobile phone while driving will find that their insurance costs will rise by on average 40 pounds over the course of a year – with increases over the 3-year period that the offence lasts for indicated to be “well over” 100 pounds.

Although increasing the annual cost of insurance by 40 pounds is a substantial rise in itself , many drivers are finding that being caught with a mobile while at the wheel may lead to even more serious financial consequences. Out of a panel of 8 insurance providers, AA pointed out that the Insurance companies questioned could increase yearly insurance costs any amount between 4.2 and 18.1 per cent for those with only a single mobile phone offence. One firm also claimed, they would refuse to provide cover altogether.

Following on from increased motor insurance costs, it may be possible that drivers come under further pressure to manage other spending constraints related to their vehicle such as petrol and repairs. In turn this could impact upon their capacity to handle other monetary commitments such as personal loans, credit cards and household bills.

Drivers caught driving whilst using a mobile phone could also be charged with careless driving. This offence, it was claimed could lead to a ban. On top of this such consumers could discover that they are refused insurance, with half insurance companies claiming they would not offer them a premium, with the other half charging an extra 50 per cent.

Simon Douglas, director of AA Insurance, stated: “Driving whilst using a hand held mobile phone places you at greater risk of having an accident – it slows reactions and you are less able to control the car. Insurance companies quite rightly take such offences seriously. Many offenders are not aware of the premium rise and we hope that raising awareness of this extra cost will help people to think twice about chatting on a hand held phone when driving.”

He also added that the police check mobile phone records following on from a road traffic accident, as part of their routine investigations, to see if the phone played a part in the accident. Resulting from this Mr Douglas advised drivers to be honest about any endorsements when renewing their insurance cover. Any inaccuracies could render their policy void.

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