Although those illegally using a mobile phone whilst driving will be fined, this may be just the beginning of their motoring related money pressures.

This is the claim of AA Insurance, who highlighted that consumers who choose flouting the law by talking on the phone while driving will be fined with a fixed-penalty notice of 60 pounds. And although some people may think that this punishment is enough in itself, for those using a mobile while in motion the financial services firm implied that such drivers will be charged higher motor insurance premiums. It was also indicated that drivers who are guilty of using a mobile phone while behind the wheel will discover their insurance costs rise by around 40 pounds over the course of 12 months - with increases over the 3-year period that the offence lasts for indicated to be “well over” 100 pounds.

And although yearly insurance costs rising by 40 pounds is in itself a substantial rise, many motorists could find that being caught with a mobile may have even more serious financial consequences. In a panel of eight insurance providers, AA pointed out that the companies questioned may increase annual costs from anywhere between 4.2 and 18.1 per cent for those with a single mobile offence. One firm, it was also indicated, will refuse to provide cover altogether.

As a result of increased car insurance costs, it is also possible that drivers will come under more pressure to manage other aspects related to their vehicle such as fuel and repairs. This could in turn have an impact on their ability to handle other financial commitments such as credit cards, personal loans and household bills.

Consumers who use a mobile could also find themselves being charged with careless driving. An offence, it was claimed, may mean they are banned from using a car. Furthermore, such consumers may find that they are refused cover, with half of the insurance providers stating that they would not offer a premium to such a consumer, with the rest imposing increases of more than 50 per cent.

Director of AA Insurance, Simon Douglas said: “Driving whilst using a hand held mobile phone places you more at risk of being involved in an accident - it slows your reactions reactions and makes you less able to control your vehicle. Insurance companies are correct in taking such offences seriously. Most offenders are unaware of the insurance and hope that by raising awareness of this extra penalty we will force people into thinking twice about chatting on a hand held mobile while driving.”

He went to assert that following a road accident police check up on mobile phone records as a part of their routine investigations to see if the device played a role in the event taking place. As a result, when drivers either have to take out cover or renew their policy, Mr Douglas urged them to be completely honest with insurance providers when asked if they have endorsements on their licence. Should this not be the case however, it was reported that they may find their insurance cover is compromised.

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