Is it just me ?
 

Is it just me or do others think this is unfair, and just another money making Insurance scam.

If a driver is unfortunate to receive penalty points on their licence they are generally valid for three years (depending on offence) after this they are deemed as expired and not used in the ‘totting up process’ however they remain showing on the licence record for a further year. This is so a court of law can refer to any driving offences within this time (should a person repeatedly offend)

After this year the licence is then deemed as clean

However you still have to declare them to your insurance company for a further year!

So three points are valid for three year, then expire. Can be removed after year four .... but still need to declare to insurance up to five years.

Can anyone enlighten me on this, as in why?

It's very simple and perfectly reasonable. Court records are about legal penalties, insurance is about risk profile of a driver. What better indicator of the latter than a diver's record.

IMO insurance should be based on your full long-term record which the 5-year declaration attempts to do.

I think it is unfair too. Rules made up by insurance companies to continue to fleece you. No other valid explanation I'm afraid. The whole insurance industry is busted, home, car, pet travel. You name it they fleece you

Worked for several European car insurance companies for some years. When British law was applicable the compagnies would often just indemnify the claimant without demanding any proof because British law is flawed and they rather pay a couple of thousands than go to court and pay a couple more. The UK compagnies probably hardly make any profit and seek every possible way to save themselves some money.

It is purely determined by the risk to the insurance company whether it is your age (youngsters and at the other end of the age range are a greater risk), where you live, whether you keep your car in a locked garage. Powerful cars are riskier and certain manufacturers parts are more expensive than others etc.
At the end of the day they take the estimated cost of the risk plus overheads plus profit.
If is such a profitable business there would be more new insurance companies starting up like there is in the banking industry.

The answer is simple. Money. Hence fines for anything and everything as a first penalty, followed by ongoing 'stigma' which is then used as a basis for future increases. Insurers are not social workers, they are invariably these days hedge funds and owned by financiers and investment managers who employ Actuaries who gamble on the odds, and clerical staff.


The risk is entirely based on your profile, a documented assessment of your past performance and your probable future record depending on your demographics. They have to manage a growth curve of profitability in the future to stay in the game and the policyholders are the captive means.

The 'market' is deceptive. Comparison sites use apathy and laziness to attract gullible customers and pay commissions to 'advertisers' - not all insurers appear on them - and it's best to develop a relationship with a local reputable broker if you want the best deal. To qualify: I spent 25 years selling, administrating, claims handling and training others in the noble art!

I am simply referring to the issue regarding points not all the other risks. I see no reason why the insurance company should keep the details for 4 or 5 years when the legal authorities do not.What will they do next....extend it to 6 or 7 years.

A perfect assessment Wraymond. Couldn't have put it better

Because people who have got points on their licence or expired points are more likely to get points again. So insurance companies want to look at the biggest time window possible.

An alternative point of view is someone who has acquired points may thereafter become a more careful and responsible driver and therefore less likely to acquire more points in the future. The insurance companies view on this and their practices are somewhat of a blunt instrument.