The cost of maintenance and running a van has spiralled over the months following the credit crunch. According to the Road Traffic Act, it is an offence to make a false statement or withhold information.

Recent data suggests that many van drivers are avoiding giving honest details in a bid to lower the cost of their premium while others are driving without cover.

Market sources say that drivers may be finding it difficult to find cheap van insurance deals largely because of the economic downturn however, experts have denied suggestions that the credit crunch has led to an increase in uninsured drivers on the roads. New figures also show that uninsured and untraced drivers kill 160 people and injure 23,000 every year.

Industry experts further maintain that the penalties for driving without insurance are somewhat lenient. Reports show that one in twenty motorists is driving without insurance. This is costing the honest drivers, including those with van Insurance, on the road an estimated �500 million a year.

Additionally, the public are of the opinion that uninsured drivers are not tracked down and therefore will not pay for their actions. It is thought that the current penalty does not deter drivers from notoriously driving without insurance. Critics also say that the fine and fixed penalty points imposed on a license suggest that it targets repeat offenders.

Motorists to face tougher measures
Recently, the government proposed that the police would have the powers to seize, and where appropriate destroy, uninsured vehicles. Figures show that an estimated 1.2 million people in UK regularly drive uninsured.

The government is considering allowing certain authorities to use the Motor Insurance Database (MIB) and the Driver and Vehicle Licensing Agency (DVLA) database to examine those who have insurance to those who are registered as owning a vehicle. The aim is to identify drivers without insurance.

However, insurers insist that this procedure still provides loopholes for van drivers bent on breaking the rules as it is not designed to detect motorists 'borrowing' a friend's vehicle. The database would only identify the vehicle as being registered and insured.

Driving without valid documents
Opponents of the present law say that van drivers caught without proper documents such as a valid driving license and van insurance policy should be dealt with severely to deter others. This should include cases where drivers fail to advise their insurer of existing medical or physical conditions that is likely to affect their ability to drive.

Reports indicate that insurance companies are now quick to cancel van insurance policy for drivers who fail to disclose information regarding any penalty points to a broker when renewing their cover. However, some motorists have argued that they are unaware of existing legal requirement to declare any convictions received in the last five years even though penalty points only remain on the license for three years.

Many believe that there is need for the government to take decisive action on this problem. The average penalty for an uninsured driving offence is a fraction of the cost of a year's car insurance, which many see as encouraging law breaking.

Author: Mildred Parker

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Article source: Free Insurance Articles.