UK Smart Motorway Insurance Risks

As an FCA-authorised broker that has helped arrange over 800,000 policies, WeCovr understands the factors affecting your motor insurance premiums in the UK. This guide explores the complex relationship between smart motorways, accident risks, and the cost of your cover, providing clarity for drivers in 2024 and beyond.

Are Smart Motorways Increasing Your Insurance Premiums? Understanding the Hidden Costs and Accident Risks for UK Drivers in 2024

The orange and blue glow of overhead gantries on the UK’s motorway network has become a familiar sight. These are the hallmarks of smart motorways, a technologically advanced system designed to ease congestion and improve traffic flow. Yet, for many drivers, they are a source of anxiety.

The central question is a pressing one: does the perceived risk of driving on these roads translate into higher motor insurance premiums?

The answer is not a simple "yes" or "no". While your insurer won't add a specific "smart motorway surcharge" to your policy, the data they collect from accidents on these routes absolutely feeds into their complex risk calculations. This article will unpack the evidence, explain how insurers assess this risk, and provide you with the essential knowledge to navigate both the tarmac and the insurance market with confidence.

What Exactly is a Smart Motorway?

Before we delve into the insurance implications, it's crucial to understand what a smart motorway is and the different forms they take. A smart motorway uses technology to actively manage the flow of traffic, aiming to reduce stop-start tailbacks and make journey times more reliable.

There are three main types you'll encounter on UK roads:

1. All Lane Running (ALR): This is the most common and controversial type. The hard shoulder is permanently converted into a live running lane. In an emergency, drivers are expected to reach designated Emergency Refuge Areas (ERAs), which are spaced up to 1.55 miles apart.
2. Dynamic Hard Shoulder: On these stretches, the hard shoulder is opened as a running lane during busy periods to ease congestion. An overhead gantry will display a speed limit to indicate it's open or a solid red 'X' to show it's closed. When the red 'X' is shown, it should only be used in a genuine emergency.
3. Controlled Motorway: These retain a permanent hard shoulder but use variable speed limits on overhead gantries to control the traffic speed, smoothing out flow and preventing jams from forming.

All these systems rely on a network of technology, including CCTV, traffic sensors, and Stopped Vehicle Detection (SVD) systems, which are monitored from a regional control centre.

The Great Safety Debate: Conflicting Data and Driver Anxiety

The safety of smart motorways is one of the most contentious topics in UK motoring. Official bodies and driver advocacy groups often present conflicting perspectives based on different interpretations of the data.

The Official Stance (National Highways)

National Highways, the government-owned company responsible for England's motorways, has consistently stated that, overall, smart motorways are among the safest roads on the strategic road network. Their data, published in official safety reports, has highlighted:

• A lower rate of fatal and weighted injuries (FWI) on All Lane Running motorways compared to conventional motorways. This is often attributed to variable speed limits reducing the severity of collisions when they do occur.
• A reduction in "tailgating" and "fender bender" type accidents due to smoother traffic flow.

The Driver's Perspective (RAC & AA Concerns)

Conversely, organisations like the RAC and the AA reflect widespread public anxiety. Their surveys and analysis point to critical flaws:

• Risk of Live Lane Breakdowns: The single biggest fear for drivers is breaking down in a live lane with no immediate access to a hard shoulder. A stationary vehicle in a lane of fast-moving traffic presents an extreme danger.
• Collision Severity: While overall collision numbers might be lower, the risk of a high-speed collision with a stationary vehicle is significantly higher on ALR motorways. These incidents are often catastrophic.
• Technology Reliability: There have been numerous reports and investigations into the reliability of the SVD technology. A 2022 BBC Panorama investigation found that on some stretches of the M25, the SVD system was out of action for significant periods. If the system fails to detect a stopped car, the control centre cannot close the lane with a Red X in time.
• Emergency Refuge Area (ERA) Spacing: The distance between ERAs (up to 1.55 miles) is a major concern. A vehicle suffering a sudden mechanical failure may not be able to coast that far, forcing it to stop in a live lane.

In January 2023, the government acknowledged these concerns by announcing that the construction of all new smart motorways would be paused until five years' worth of safety data for schemes opened before 2020 is available.

How Insurers View Smart Motorway Risks

Insurance is a business of pricing risk. Insurers use sophisticated algorithms and vast pools of data to predict the likelihood of a claim and its potential cost. They don't look at smart motorways in isolation, but the unique risks they present are undeniably part of the equation.

Here’s how an underwriter at a motor insurance UK provider might analyse the situation:

While you won't see a line on your policy for "Smart Motorway Driving," the data from accidents on the M1, M4, M6, and M25 all feeds into the national pool of data that determines the base cost of car insurance. If an insurer sees a spike in expensive claims originating from postcodes near ALR motorways, it will inevitably influence their pricing for that region.

A Mandatory Guide to UK Motor Insurance

Understanding your insurance policy is just as important as understanding the risks on the road. In the UK, having the right cover is a legal requirement.

The Legal Minimum: Third-Party Insurance

Under the Road Traffic Act 1988, it is a criminal offence to drive or keep a vehicle on a public road without at least Third-Party Only insurance. Driving without insurance can lead to unlimited fines, penalty points, and even disqualification.

The Three Levels of Cover

1. Third-Party Only (TPO): This is the most basic level. It covers any liability for injury to other people (including your passengers) and damage to other people's property. It does not cover any damage to your own vehicle or injuries to yourself.
2. Third-Party, Fire and Theft (TPFT): This includes everything in a TPO policy, but also covers your vehicle if it is stolen or damaged by fire.
3. Comprehensive: This is the highest level of cover. It includes everything from TPFT but also covers damage to your own vehicle in an accident, even if the accident was your fault. It often includes other benefits like windscreen cover as standard.

An important note: It is a common misconception that TPO is always the cheapest option. Due to risk profiling (insurers finding that high-risk drivers often opt for the minimum cover), a Comprehensive policy can sometimes be cheaper. It's always worth comparing quotes for all three levels.

Business and Fleet Insurance Obligations

If you use your vehicle for work, including commuting to multiple sites or for a business like deliveries, you need business car insurance. A standard policy will not cover you. For companies operating multiple vehicles, fleet insurance is the most efficient solution. A single policy can cover all vehicles and drivers, simplifying administration and often reducing costs. As experts in this area, WeCovr can provide specialist advice to ensure your fleet has the correct, legally compliant cover.

Understanding Your Policy's Key Terms

Navigating your insurance documents can be daunting. Here’s a plain English guide to the most important terms:

• No-Claims Bonus (NCB) or No-Claims Discount (NCD): For every year you drive without making a claim, you earn a discount on your premium. This can be substantial, often reaching over 60-70% after five or more years. Making a "fault" claim (where your insurer cannot recover costs from a third party) will typically reduce your NCB by two years.
• Excess: This is the amount you must pay towards any claim you make. It's made up of two parts:
  • Compulsory Excess: Set by the insurer and non-negotiable.
  • Voluntary Excess: An amount you agree to pay on top of the compulsory excess. Choosing a higher voluntary excess can lower your premium, but you must be sure you can afford to pay it if you need to claim.
• Optional Extras: These are add-ons that can provide valuable protection:
  • Breakdown Cover: Essential for any driver, but arguably critical for those who frequently use smart motorways.
  • Motor Legal Protection: Covers legal costs to help you recover uninsured losses (like your excess or loss of earnings) from a third party who was at fault.
  • Guaranteed Courtesy Car: Ensures you have a replacement vehicle while yours is being repaired after an accident. A standard courtesy car is often only provided if the car is repairable and you use an approved garage.

How to Drive Safely on a Smart Motorway (and Protect Your No-Claims Bonus)

Adhering to official safety advice is the best way to protect yourself, your passengers, and your insurance premium. An accident, even a minor one, can have a significant impact on your costs for years to come.

Before You Drive:

• Check Your Vehicle: A significant number of breakdowns are preventable. Check your fuel/electric charge, tyre pressures, oil, and coolant levels before any long journey.
• Know Your Route: Be aware if your journey includes a smart motorway section.

While Driving on a Smart Motorway:

1. Never, ever ignore a Red X: A Red X on an overhead gantry means the lane is closed. Driving in it is illegal and extremely dangerous, as there could be a stopped vehicle or a person ahead. Cameras can and will enforce this.
2. Keep Left: As on any motorway, you should stay in the left-hand lane unless you are overtaking.
3. Obey Speed Limits: The variable speed limits are there for a reason – usually to prevent a jam from forming ahead. Adhering to them keeps traffic flowing and reduces the risk of collisions.
4. Don't Tailgate: Leave a safe gap to the vehicle in front. The "two-second rule" is a minimum.

What to Do if You Break Down:

This is the most critical procedure to know.

1. Aim for an Emergency Refuge Area (ERA): If your car starts to fail, use any momentum you have to get to the next ERA, exit slip road, or motorway service area. ERAs are marked with large blue signs featuring an orange SOS telephone symbol.
2. If You Must Stop in a Live Lane:
   • Switch on your hazard warning lights immediately. This is the most important signal to other drivers.
   • If you are in the left-most lane, consider exiting your vehicle via the passenger-side door only if you are certain it is clear and you can get behind the safety barrier safely.
   • Keep your seatbelt on, stay in your vehicle, and dial 999 immediately. Inform the police of your location and that you are in a live lane.
   • Do not attempt to place a warning triangle on the motorway.
3. If You Reach an ERA:
   • Pull in as far to the left as you can.
   • Turn on your hazard warning lights.
   • Turn your wheels towards the verge.
   • Exit the vehicle from the passenger side and wait behind the crash barrier.
   • Use the orange SOS phone to connect directly to the control centre. They will automatically know your location.

The Future of Smart Motorways and Your Insurance

The pause on new smart motorways signifies a shift towards prioritising safety and public confidence. The government and National Highways are currently focused on:

• Retrofitting Existing Schemes: Installing more ERAs on existing ALR motorways to reduce the maximum distance between them to one mile, and ideally three-quarters of a mile.
• Improving SVD Technology: Investing £105 million to upgrade Stopped Vehicle Detection systems and ensure they work effectively across the network.
• Data, Data, Data: The next few years of data will be crucial. Insurers will be watching closely. If the safety upgrades prove effective and reduce the rate of severe collisions, this could stabilise the associated risk factor in their pricing models.

The rise of telematics insurance (black box policies) will also play a role. These devices provide granular data on where, when, and how you drive. In the future, an insurer could potentially offer discounts to drivers who demonstrate safe behaviour on all road types, including smart motorways.

How WeCovr Can Find the Best Car Insurance Provider for You

In a market influenced by complex factors like smart motorways, inflation, and new vehicle technology, finding the right motor policy at a fair price can be a challenge. This is where an expert broker adds real value.

WeCovr is an independent, FCA-authorised insurance broker. We are not tied to any single insurer. Our job is to represent you, using our expertise and market access to find the policy that best fits your needs and budget.

• We Compare the Market: We do the hard work for you, comparing policies from a wide panel of leading UK insurers.
• Expertise Across the Board: Whether you need standard car insurance, van cover, motorcycle insurance, or a comprehensive fleet insurance solution for your business, our specialists can help.
• Customer-Focused: Our high customer satisfaction ratings are built on providing clear, impartial advice. We can help you understand the fine print, from excess levels to optional extras, ensuring you're not paying for cover you don't need or missing protection you do.
• Potential for More Savings: Customers who arrange their motor or life insurance through WeCovr may also be eligible for discounts on other insurance products, providing even greater value.

Navigating the risks of modern driving is complex enough. Let WeCovr handle the complexities of your insurance.

Ready to find a motor insurance policy that gives you confidence on the road? Get a free, no-obligation quote from WeCovr today and let our experts find the right cover for you.