TL;DR
WeCovr explains how penalty points and convictions affect your premiums — and how to reduce the impact A driving conviction can feel like a heavy weight, not just on your conscience but also on your wallet. Here at WeCovr, an FCA-authorised expert in the UK motor insurance market, we have arranged over 900,000 policies. We understand the anxiety that penalty points and endorsements bring when it’s time to renew your vehicle cover.
Key takeaways
- Injuries to other people (including your passengers).
- Damage to another person's property.
- Class 1 Business Use: Covers travel to multiple sites or between offices.
- Class 2 Business Use: Includes a named driver, typically a colleague, who uses the vehicle for the same business purposes.
- Class 3 Business Use: For heavy users, such as salespeople who cover extensive mileage.
WeCovr explains how penalty points and convictions affect your premiums — and how to reduce the impact
A driving conviction can feel like a heavy weight, not just on your conscience but also on your wallet. Here at WeCovr, an FCA-authorised expert in the UK motor insurance market, we have arranged over 900,000 policies. We understand the anxiety that penalty points and endorsements bring when it’s time to renew your vehicle cover.
This comprehensive guide breaks down exactly how different convictions affect your car, van, or motorcycle insurance. We will explore the data behind the premium increases, explain your legal duty to disclose information, and, most importantly, provide actionable strategies to help you find the most competitive and fair motor policy, even with a blemished driving record.
Understanding Your Legal Motor Insurance Obligations in the UK
Before we delve into the impact of convictions, it’s crucial to understand the legal framework of motor insurance in the United Kingdom. Failing to have the correct insurance is a serious offence in itself, often carrying the conviction code IN10, which comes with 6 to 8 penalty points and a significant fine.
The Legal Minimum: Third-Party Insurance
Under the Road Traffic Act 1988, it is illegal to use, or permit others to use, a motor vehicle on a road or other public place unless a valid policy of insurance is in effect. The absolute minimum level of cover required by UK law is Third-Party Only (TPO).
This cover protects you against liability for:
- Injuries to other people (including your passengers).
- Damage to another person's property.
Crucially, TPO insurance does not cover any damage to your own vehicle or any injuries you sustain in an accident that was your fault.
A Breakdown of UK Motor Insurance Cover Levels
Insurers offer three main tiers of cover. While TPO is the legal minimum, it is not always the cheapest option, as insurers often view drivers seeking the bare minimum cover as higher risk.
| Level of Cover | Damage to Your Vehicle | Damage to Third-Party Property | Injury to Others | Fire & Theft of Your Vehicle |
|---|---|---|---|---|
| Third-Party Only (TPO) | ❌ No | ✅ Yes | ✅ Yes | ❌ No |
| Third Party, Fire & Theft (TPFT) | ❌ No (unless by fire/theft) | ✅ Yes | ✅ Yes | ✅ Yes |
| Comprehensive | ✅ Yes | ✅ Yes | ✅ Yes | ✅ Yes |
Business and Fleet Insurance Requirements
For businesses, the rules are just as strict. If you use your vehicle for any work-related purposes beyond commuting to a single, permanent place of work, you need business car insurance. This is split into different classes:
- Class 1 Business Use: Covers travel to multiple sites or between offices.
- Class 2 Business Use: Includes a named driver, typically a colleague, who uses the vehicle for the same business purposes.
- Class 3 Business Use: For heavy users, such as salespeople who cover extensive mileage.
For companies operating multiple vehicles, fleet insurance is the standard solution. A fleet policy covers all company vehicles under a single umbrella, simplifying administration and often reducing costs. Fleet managers have a legal duty to ensure all drivers are properly licenced and that the fleet is insured for its specific business use.
Key Motor Insurance Terms Explained
Understanding the language of your motor policy is vital. Here are the core concepts that affect your premium and what happens when you claim.
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No-Claims Bonus (NCB) or No-Claims Discount (NCD): This is a discount you earn for each consecutive year you drive without making a claim on your policy. It's one of the most significant factors in reducing your premium, with five or more years of NCB often leading to discounts of 60-75%. Making an at-fault claim will usually reduce your NCB by two years, causing a sharp rise in your next premium.
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Policy Excess: This is the amount of money you must contribute towards a claim. It's made up of two parts:
- Compulsory Excess: A fixed amount set by the insurer.
- Voluntary Excess: An additional amount you agree to pay. Choosing a higher voluntary excess can lower your premium, but you must be able to afford the total amount if you need to claim.
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Optional Extras: These are add-ons that enhance your cover. Common extras include:
- Breakdown Cover: Assistance if your vehicle breaks down.
- Motor Legal Protection: Covers legal costs to pursue a claim for uninsured losses (like your excess or personal injury) against a third party.
- Guaranteed Courtesy Car: Provides a replacement vehicle while yours is being repaired after a claim, often guaranteeing a similar-sized car to your own.
Why Do Driving Convictions Increase Your Insurance Premiums?
Insurers are in the business of calculating risk. Your annual premium is a direct reflection of how likely they believe you are to make a claim. A driving conviction signals to an insurer that your risk profile has increased.
The Insurer's Perspective: Risk Assessment
From an underwriter's viewpoint, a driver with penalty points is statistically more likely to be involved in a future incident.
- Statistical Correlation: Data from sources like the Association of British Insurers (ABI) and the Department for Transport consistently shows that drivers with prior convictions have a higher claim frequency. A speeding conviction (e.g., SP30) suggests a tendency to break rules, while a more serious conviction like drink-driving (DR10) indicates a significant lapse in judgement.
- Moral Hazard: This is an insurance term for a situation where one party gets involved in a risky event knowing that it is protected against the risk and the other party will incur the cost. A history of convictions can be seen as an indicator of a higher moral hazard.
A 2024 analysis by a leading price comparison site found that a single speeding conviction could increase premiums by an average of 5-10%, while a conviction for using a mobile phone (CU80) could see premiums rise by over 30%.
The Impact on Your No-Claims Bonus (NCB)
If your conviction resulted from an at-fault accident, you will likely lose some or all of your No-Claims Bonus in addition to the premium loading for the conviction itself. This double impact can cause your renewal price to skyrocket. Protecting your NCB can be a valuable add-on, but it won't shield you from the premium increase related to the conviction endorsement on your licence.
A Deep Dive into UK Driving Conviction Codes
The DVLA uses a system of codes to denote specific driving offences. These codes, along with the corresponding penalty points, are what insurers use to assess your record. You can check your own driving record for free on the gov.uk website.
Here are some of the most common conviction codes and their typical impact:
| Code | Offence | Penalty Points | Typical Premium Impact |
|---|---|---|---|
| SP30 / SP50 | Speeding on a public road / motorway | 3 - 6 | 5% - 20% increase |
| CU80 | Using a mobile phone while driving | 6 | 30% - 60% increase |
| IN10 | Driving without insurance | 6 - 8 | 100%+ increase / refusal to quote |
| TS10 | Failing to comply with traffic signals | 3 | 10% - 25% increase |
| CD10 | Driving without due care and attention | 3 - 9 | 40% - 80% increase |
| DR10 | Driving or attempting to drive with alcohol level above limit | 3 - 11 | 100%+ increase / refusal to quote |
| DG10 | Driving or attempting to drive with drug level above limit | 3 - 11 | 100%+ increase / refusal to quote |
Note: These premium impacts are estimates. The actual increase depends on the insurer, your age, vehicle, and overall driving history.
The Financial Impact: How Much More Will You Pay?
The financial penalty of a conviction extends far beyond the initial court fine. The increase in your motor insurance premiums can last for up to five years, making it a long-term financial burden.
Real-World Scenarios: Premium Increases by Conviction Type
Let's imagine a 35-year-old driver of a Ford Focus with a clean licence and five years of No-Claims Bonus. Their standard premium is £500. (illustrative estimate)
| Conviction Acquired | Estimated New Premium | Total 5-Year Extra Cost |
|---|---|---|
| SP30 (3 points for speeding) | £575 (+15%) | £375 |
| CU80 (6 points for mobile phone use) | £750 (+50%) | £1,250 |
| CD10 (6 points for careless driving) | £900 (+80%) | £2,000 |
| DR10 (drink-driving ban + conviction) | £1,500+ (+200% or more) | £5,000+ |
This table clearly illustrates how a single mistake can cost thousands of pounds over the period you are required to declare it. For serious offences like a DR10, many mainstream insurers will simply refuse to offer a quote, forcing you into the specialist (and more expensive) market.
The Duty to Disclose: When and What You Must Tell Your Insurer
Honesty is not just the best policy; it's a legal requirement when buying insurance. Withholding information about your convictions is known as 'non-disclosure' and can have severe consequences.
What is a "Material Fact"?
A material fact is any piece of information that could influence an insurer's decision to offer you cover or the price at which they offer it. Driving convictions are always considered material facts.
When to Declare Convictions
- When taking out a new policy: You must declare all 'unspent' convictions.
- At renewal: Your existing insurer will ask you to confirm if your details have changed, including any new convictions.
- Mid-term (after a new conviction): Most policy documents require you to inform your insurer of any new convictions immediately. Failure to do so could invalidate your cover.
The Consequences of Non-Disclosure
If you fail to declare a conviction and later need to make a claim, your insurer may:
- Void your policy: This means they treat the policy as if it never existed, refuse your claim, and you will be personally liable for all costs.
- Cancel your policy: This leaves a cancellation mark on your insurance history, making it very difficult and expensive to get cover elsewhere.
- Charge you for the additional premium: They may agree to pay the claim but will charge you the extra premium you should have paid from the date of the conviction.
Having a policy cancelled or voided is a red flag to all future insurers and can be even more damaging than the original driving conviction itself.
The Rehabilitation of Offenders Act 1974
You are not required to declare convictions forever. The Rehabilitation of Offenders Act 1974 states that once a conviction is 'spent', it no longer needs to be disclosed to insurers.
The time it takes for a conviction to become spent depends on the sentence. For most motoring offences, the rehabilitation period starts from the date of conviction.
| Sentence / Endorsement | Rehabilitation Period (Time to Become 'Spent') |
|---|---|
| Penalty Points (endorsement) | 5 years |
| Fine | 1 year |
| Disqualification from driving | The length of the ban |
| Prison sentence (less than 6 months) | 2 years after sentence ends |
Important Note: Penalty points remain on your DVLA record for 4 years for most offences (and 11 years for serious offences like drink-driving), but for insurance purposes, you must declare them for 5 years. This is a common point of confusion. Always declare unspent convictions.
Strategies to Reduce Your Motor Insurance Premiums with Convictions
Receiving a conviction is disheartening, but it doesn't mean you are destined to pay unaffordable premiums forever. Here are proven strategies to get a better deal on your motor insurance UK policy.
1. Shop Around with a Specialist Broker
This is the single most effective strategy. Mainstream insurers and price comparison websites often use computer algorithms that automatically apply huge price hikes or decline quotes for drivers with convictions.
A specialist broker, like WeCovr, can help immensely. We are experienced insurance specialists with access to a panel of specialist underwriters who manually assess each case. These insurers understand that a past mistake doesn't necessarily make you a reckless driver today. They are more willing to listen to the context and offer a fairer price.
2. Choose Your Vehicle Wisely
The car you drive has a massive impact on your premium. Insurers place every car model into one of 50 insurance groups. Driving a car in a lower group (e.g., a Volkswagen Polo instead of a Golf GTI) can save you hundreds of pounds, especially with a conviction.
3. Increase Your Voluntary Excess
The excess is the amount you agree to pay towards any claim. By increasing your 'voluntary' excess on top of the 'compulsory' excess set by the insurer, you show you are willing to share more of the risk. This can lower your premium, but be sure you can afford to pay the total excess if you need to make a claim.
4. Consider a Telematics (Black Box) Policy
A telematics policy involves fitting a small device (or using a smartphone app) to monitor your driving habits, such as speed, acceleration, braking, and cornering. For a driver with a conviction, this is a powerful way to prove you are now a safe and responsible road user. Good driving can be rewarded with significant discounts at renewal.
5. Take an Advanced Driving Course
Completing a course with an organisation like IAM RoadSmart or the Royal Society for the Prevention of Accidents (RoSPA) demonstrates your commitment to safety. Many specialist insurers offer discounts to drivers who hold an advanced driving qualification.
6. Review Your Policy Details Carefully
- Mileage: Be honest but accurate. Overestimating your annual mileage will unnecessarily increase your premium.
- Use: Ensure you have the correct class of use. If you no longer commute, change your policy to 'Social, Domestic & Pleasure' only.
- Security: Fitting an approved alarm, immobiliser, or tracking device can lead to discounts.
Special Focus: Fleet Insurance for Businesses with Convicted Drivers
For a business, a driver's conviction is not just their problem; it's a significant risk to the company.
- Managing Driver Risk: Fleet managers must have a robust system for managing driver risk. This includes having a clear company driving policy and taking action when an employee receives a conviction.
- Regular Licence Checks: Using the DVLA's 'Share Driving Licence' service (with employee consent) for regular checks is essential. It's not enough to check a licence once when an employee is hired.
- Impact on Fleet Policy: A single driver with a serious conviction, or multiple drivers with minor points, can cause the entire fleet insurance premium to rise. Some insurers may even impose a higher excess for claims involving convicted drivers or exclude them entirely.
WeCovr has extensive experience in the fleet insurance market. We can help businesses find policies that don't penalise the entire company for the actions of one driver and provide guidance on implementing risk management procedures that insurers look upon favourably.
WeCovr: Your Partner in Finding Fair Motor Insurance
Finding affordable, reliable motor insurance with convictions can be a frustrating process. At WeCovr, we believe that everyone deserves a fair chance to get back on the road. Our high customer satisfaction ratings are built on a foundation of trust and expertise. As an FCA-authorised broker, we work for you, not the insurer.
We leverage our relationships with a wide range of mainstream and specialist insurance providers to find the right cover for your unique circumstances, whether you need a private car policy, van cover, or a complex fleet insurance solution.
Furthermore, clients who purchase a motor or life insurance policy through WeCovr may be eligible for discounts on other insurance products we offer, providing even greater value.
Frequently Asked Questions (FAQs) about Driving Convictions and Insurance
Here are answers to some of the most common questions we receive.
Do I have to declare points from a speed awareness course?
No. If you are offered and successfully complete a speed awareness course as an alternative to a Fixed Penalty Notice, you do not receive any penalty points on your licence. Therefore, you do not need to declare it to your insurer as it is not a conviction.
How long do penalty points stay on my licence for insurance purposes?
For most convictions (like speeding or using a mobile phone), you must declare the penalty points to insurers for a period of five years from the date of the conviction. This is longer than the four years they are 'valid' for totting-up purposes on your DVLA record. For very serious offences like drink-driving (DR10), the conviction code remains on your licence for 11 years, and you may need to declare it for that entire period to some insurers.
Can I get car insurance if I've been banned from driving?
Yes, it is possible to get car insurance after a driving ban. However, once your disqualification period is over, you will be considered a very high-risk driver. You will almost certainly need to approach a specialist broker like WeCovr who works with insurers that cater specifically to the 'convicted driver' market. Your premiums will be very high initially but will decrease over time as you build a new, clean driving history.
Will a conviction for a non-motoring offence affect my car insurance?
Yes, it can. When you apply for insurance, you will be asked to declare any 'unspent' criminal convictions, not just motoring ones. Insurers view certain non-motoring criminal convictions as an indicator of increased moral hazard, which can lead to higher premiums or a refusal to offer cover. You must always answer this question truthfully.
A driving conviction doesn’t have to mean the end of the road for affordable insurance. With the right knowledge and expert guidance, you can navigate the market and find a policy that fits.
Ready to see how much you could save? Get a competitive, no-obligation motor insurance quote from the experts at WeCovr today.
Sources
- Department for Transport (DfT): Road safety and transport statistics.
- DVLA / DVSA: UK vehicle and driving regulatory guidance.
- Association of British Insurers (ABI): Motor insurance market and claims publications.
- Financial Conduct Authority (FCA): Insurance conduct and consumer information guidance.
