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Car Tax Evasion That We All Pay For

Submitted by Catherine on 2008-02-11 and viewed 273 times.   
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A look at the problem of car tax evasion, how it costs us all and the implications for car insurance premiums.

I don’t know about you but wherever I drive in my town, there is a plethora of road traffic police checking up on car tax. Despite this, one in twenty vehicles on the road is still untaxed and undetected. I can be quite sure if I ever tried to get away with car tax, even for a day, they’d find me! To cover this shortfall in revenue, costs of 214 pounds million were put on the law abiding car driver last year. It has been found through studies that when a car is untaxed continually, the driver is also unlikely to worry whether or not his car is in roadworthy condition. This puts us all at risk, thus pushing up car insurance premiums too, to cover the problems these drivers bring. The Public Accounts Committee say the whole road tax system is becoming a laughing stock and they don’t really have any idea just how huge the problem is. They do know, however, that tax evasion rose to 5% during 2006. Motorcyclists are pushing their luck even more with between 30 and 38% avoiding the payment. This seems silly when road tax for motorbikes is so minimal. For the small amount they would have to pay in vehicle excise duty, it tops up the road tax and car insurance premiums for the rest of us, putting more pressure on those who are trying to stay within the law. Funds from the road tax of the 35 million cars on the road raises around 5 pounds billion per year. The aim of the DVLA was to cut car tax evasion by 70 pounds million a year by the end of 2008 but this obviously is not going to happen. These seem like colossal figures and it makes you wonder what we get for our money when you look at the state of some roads. Maybe they could do a postcode type system like they do with the
health authority because I defy anybody to get away with car tax evasion in my area and it seems unfair that we end up paying for those in different areas where car tax evasion is more prolific. The law abiding drivers are caught out once again when they’re number plates are cloned. When the number plate is picked up by a police camera it looks like they have car tax when that particular vehicle doesn’t. This puts more dangerous vehicles on the road, causing more accidents and once again pushing up our car insurance premiums. Essex County Council recently sold a number plate at an auction that had been registered to them since 1904. The number plate reads ’F1’ and cost the buyer 375,000. pounds This beats the previous record of most expensive number plate which was set at 331,000 pounds and just said M1. The proceeds from this sale are being put towards a safe driving scheme for young motorists, a very worthwhile cause. If young motorists are being taught safe driving tactics maybe this will help reduce extortionate car insurance premiums for them so they’re poor parents do not have to keep digging deep in our pockets to put the little darlings on our own car insurance. While car tax is a standard price that we all have to pay, car insurance premiums for young people having just passed their test is exorbitant. With many having to pay over 2000 pounds a year for car insurance, surely it is only the children of the well off that can afford to keep a car on the road? Most young drivers of families with an average income will be put on their parents car insurance policies as an additional driver, bumping up their own premiums although not to the tune of 2000. pounds

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Insurance expert Catherine Harvey looks at the effects on life insurance of car tax evasion. To find out more please visit http://www.theidol.com/




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