Foreign Drivers Use Loophole To Cut Down Insurance Cost
Nowadays, a new kind of insurance fraud by the foreign drivers was unfolded to save on insurance cost. A lot of east Europeans are registering and insuring their cars in Romania at just £100 a year to drive easily on the road of London.
The foreign drivers are easily exploiting this loophole in the legal system of UK and benefited at soaring car insurance cost, parking charges and even congestion. The drivers are even saving on the traffic penalties, as the UK police is unable to trace them due to their registration in Romania.
In past year, the car insurance rates have risen to 40%, which is the major contributing factor towards rising insurance frauds. More and more of the drivers are looking out for different methods to curb the rising motoring cost. One in 10 UK drivers is driving the car without insurance, which risks not only the driver’s life but also the third party and other vehicles running on the road.
If we compare car insurance cost, it is seven times cheaper in Romania. This makes foreign motorists to use their nationality and save on the insurance cost. The Romanian insurance and number plates are legal for six months only; that is why the foreign drivers take the deal twice in the year and go for a trip to Romania to renew their lapsing registration and insurance policy.
The foreign drivers produce Slovakian insurance certificates and Polish insurance certificates to the UK police, as the police cannot crosscheck it with the insurance companies in Poland and Slovakia. The accident claims against such insurance policies are also problematic that makes even congestion and parking tickets charge fines to be ignored.
To ensure enforcement of consistent level to all road users, the government is using a European Debt Recovery Agency that has links with foreign vehicle licensing authorities and can issue penalty charges.
Article written by the marketing division of Compare.Com.