News eDaily08 Nov 2017

Australia:Uninsured drivers cost the insured US$1 bln more a year

| 08 Nov 2017

Insured drivers in Australia pay an additional total A$1.3 billion (US$993 million) a year to cover the risk of accidents with uninsured motorists. according to a report from the Brotherhood of St Laurence. The estimate works out to A$45 (US$34) extra annually for an insured driver.

The report, titled “The Pranged: The Real Cost of Optional Vehicle Insurance in Australia”, says that uninsured drivers are causing 114,000 crashes each year and pushing up premium costs for other motorists through comprehensive motor policies.

Drivers with a comprehensive policy can make a claim on their own insurance for accidents that aren’t their fault, if the at-fault driver is uninsured. The report suggests that to account for this, insurers are raising comprehensive policy premiums.

The research assumes 12% of vehicles in Australia are uninsured — equivalent to 2.3 million drivers.

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