AA Insurance makes new uninsured driver promise

Drivers insured with the AA will no longer lose their no claims bonus when involved in a collision with an uninsured driver as long as no one is at fault.

This new uninsured driver promise has been agreed with all insurers on its panel and it is thought that the AA are the first major broker to offer it.

Director of AA Insurance, Simon Douglas, said: "It seems unfair that the innocent party should end up paying the penalty of a lost no-claim discount, which could be much greater than the penalty suffered by the uninsured driver, until such time as compensation is met through the MIB [Motor Insurers' Bureau] when a lost no-claim discount would be normally be restored."

Around one in every 25 drivers on Britain's roads does not have insurance, according to the MIB, and crashes involving them cost the car insurance industry £380 million each year.