Budget 2025: Key Impacts for Fleet & HGV Operators
The UK Budget 2025 introduces several measures that directly affect commercial fleet and HGV operations. Here’s a clear breakdown:
1. Fuel Duty
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Frozen for another year: The government has extended the freeze on fuel duty, which benefits operators by keeping fuel costs stable.
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Green incentives: There’s an additional rebate for operators transitioning to low-emission or electric HGVs.
2. Vehicle Excise Duty (VED)
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Increase for older diesel HGVs: Higher VED rates apply to vehicles that do not meet Euro VI standards.
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Discount for zero-emission fleets: Electric and hydrogen-powered HGVs continue to enjoy significant VED reductions.
3. Infrastructure & Charging
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£1.2 billion investment in EV charging infrastructure for commercial vehicles, focusing on motorway service areas and depots.
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Grants for installing depot-based charging and hydrogen refuelling stations.
4. Road User Charging
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Consultation announced on introducing a distance-based road user charge for HGVs by 2028, aimed at replacing the current HGV levy.
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Operators should start planning for telematics integration.
5. Skills & Training
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Funding for driver upskilling and green fleet maintenance training, which could reduce compliance costs for operators adopting new technologies.
6. Net Zero Transition
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Accelerated phase-out of new diesel HGV sales by 2035 confirmed.
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Additional grants for fleet conversion and scrappage schemes.
What This Means for Operators
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Short-term relief from fuel duty freeze.
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Long-term pressure to invest in low-emission vehicles and infrastructure.
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Potential cost increases for older fleets due to VED changes and future road charging.
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In summary, the 2025 Budget provides short-term relief for HGV operators with an extended fuel duty freeze but introduces long-term cost challenges with duty increases planned for late 2026. Operators should prepare for updates to compliance regulations and plan how to absord rising costs in order to stay competitive.
Festive Season: Protect Your Fleet from Drink & Drug Driving Risks
As the holiday season approaches, the logistics sector faces its busiest period of the year. Increased deliveries, tight schedules, and festive celebrations create a perfect storm for impaired driving risks. For fleet managers and HGV operators, this is not just a compliance issue—it’s a matter of both safety and reputation.
With the party season about to enter full swing, drivers may consume alcohol or drugs during celebrations and underestimate residual effects the next morning. Even after a night’s sleep, substances can remain in the system and can affect judgment and reaction times.
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It’s a common misconception that coffee, food, or cold showers will eliminate alcohol or drugs from the body. In truth, time is the only remedy and driving whilst still over the limit can lead to severe legal and financial consequences.
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Professional drivers are held to higher standards under DVSA and HSE guidelines with many fleet operators adopting zero tolerance policies far stricter than the legal threshold..
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There are simple and practical steps businesses can take to reduce the risk of staff driving under the influence.
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Plan parties for the end of the week, offer transport or accommodation, and discourage next-day driving.
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The bottom line is that impaired driving is a year-round issue that can potentially become an even bigger risk during the festive season.
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​By taking a proactive approach, you can help save lives, protect the reputation of your business, and ensure your fleet stays on the move.​​​​​
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The Hidden Danger of Driver Fatigue
Driver fatigue is one of the leading causes of road accidents in the UK, particularly in the commercial transport sector. Long hours, tight delivery schedules, and irregular sleep patterns put drivers at risk, often without clear warning signs until it’s too late. Industry reports suggest fatigue-related incidents cost millions annually in damages and lost productivity.
As the logistics industry embraces digital transformation, artificial intelligence (AI) is emerging as a powerful tool to detect and mitigate fatigue before it becomes a safety hazard.
AI-powered cameras and sensors track eye movement, head position, and facial expressions to detect early signs of drowsiness. Alerts can prompt drivers to take breaks before fatigue escalates.
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Smart wearables monitor heart rate variability and other biometric indicators, feeding data into AI systems for continuous risk assessment.
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Advanced AI tools assess speech patterns and driving behaviour for subtle signs of tiredness, adding another layer of protection.
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Safety advocates and fleet managers agree that AI-driven fatigue detection is a game-changer. "Technology gives us the ability to act before an accident happens," says a spokesperson for the Freight Transport Association. However, experts stress that AI should complement—not replace—driver education and compliance programs.
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As AI technology becomes more affordable and integrated into telematics systems, fatigue detection could become standard across UK fleets within the next five years. The challenge now lies in balancing innovation with privacy concerns and ensuring widespread adoption.
The Growing Challenge of Empty Running
Empty running—where heavy goods vehicles (HGVs) travel without cargo—remains a persistent issue in the UK logistics sector. According to recent industry data, nearly 30% of HGV journeys are made empty, contributing to inefficiencies, increased carbon emissions, and higher operational costs for haulage firms.
With the UK striving to meet its net-zero targets and improve supply chain resilience, tackling empty running has become a priority for both government and industry stakeholders.
Logistics associations have called for urgent action, warning that without systemic change, empty running will continue to erode profitability and hinder decarbonization efforts. "We need a coordinated approach that combines technology, policy, and collaboration," said a spokesperson for the Road Haulage Association.
Reducing empty running is not just an operational challenge—it’s a strategic imperative for the UK’s transport sector. With major initiatives on the horizon, the next 12 months could define how effectively the industry addresses this long-standing inefficiency.
Military to Help Fast-Track HGV tests
The UK government has announced plans to boost HGV test capacity by deploying military examiners to support civilian testing centres. This initiative aims to tackle the ongoing driver shortage and accelerate the licensing process for new heavy goods vehicle drivers.
The shortage of qualified HGV drivers has strained supply chains and increased costs for logistics firms. By expanding testing capacity, the government hopes to reduce waiting times for practical exams and help thousands of candidates enter the workforce sooner.
Military examiners, trained to high standards, will collaborate with the Driver and Vehicle Standards Agency (DVSA) to conduct additional tests across the UK. This temporary measure is part of a broader strategy to stabilize the transport sector and ensure goods keep moving efficiently.
Logistics associations have welcomed the move, calling it a "critical intervention" to ease pressure on fleets. Training providers are also preparing to scale up programs to meet the anticipated surge in demand for HGV qualifications.
While the military support is expected to be short-term, experts believe it will provide immediate relief and buy time for longer-term solutions, such as digital scheduling systems and expanded examiner recruitment.
The Future of Fleet Skills: Embracing AI
Fleet management is entering a new era where artificial intelligence (AI) and automation are transforming traditional practices. Spreadsheets and manual processes are giving way to smart systems that optimise routes, predict maintenance needs, and enhance fuel efficiency. To stay competitive, fleet managers must develop a new set of skills that blend technology expertise with strategic thinking.
AI-powered platforms streamline operations, reduce costs, and improve safety. However, these benefits come with a learning curve. Fleet professionals must understand how to leverage data-driven insights and integrate advanced tools into daily workflows. The ability to adapt quickly to technological change is now a core competency.
Training programs and certifications focused on AI fundamentals, data analytics, and system integration are emerging to bridge the skills gap. Companies that invest in upskilling their workforce will position themselves for long-term success.
Interpreting real-time data from telematics and IoT (Internet of Things) sensors is crucial for informed decision-making.
Knowledge of AI-driven fleet management systems ensures smooth implementation and maximizes return on investment.
As fleets become more connected, safeguarding sensitive data against cyber threats is vital.
The future of fleet management is smart, connected, and data driven. Managers who embrace these changes and acquire the necessary skills will not only improve operational efficiency but also gain a competitive edge in an increasingly digital marketplace.
UK Faces Urgent Need to Train 60,000 HGV Drivers
The UK faces a critical shortage of heavy goods vehicle (HGV) drivers, with industry experts warning that 60,000 new drivers must be trained annually to prevent the situation from deteriorating further. This shortage threatens supply chains, delivery schedules, and the broader economy, as logistics firms struggle to fill vacancies.
Several factors contribute to the crisis: an aging workforce with many drivers nearing retirement, post-Brexit changes reducing the pool of EU drivers, and increased demand for goods transportation following e-commerce growth.
Training programs and government-backed initiatives are being urged to accelerate recruitment and certification. Companies are investing in apprenticeships and fast-track licensing schemes, but experts say more coordinated action is needed.
Without significant intervention, delivery delays and rising costs could impact businesses and consumers alike. Addressing this challenge is essential for maintaining the UK’s logistics resilience and supporting economic growth.
UK Fleets Missing Out on Retread Tyre Benefits
Despite mounting pressure to cut costs and reduce carbon emissions, many UK fleet operators continue to overlook retread tyres—a proven solution offering both financial and environmental benefits. Industry experts warn that this missed opportunity could undermine sustainability targets and increase operating costs.
Retread tyres, which reuse the casing of worn tyres with a new tread, can reduce tyre costs by up to 30% and cut carbon emissions significantly compared to manufacturing new tyres. They also help fleets meet corporate sustainability goals without compromising safety or performance.
So why are fleets hesitant? Common concerns include outdated perceptions about quality and durability, despite modern retreads meeting stringent safety standards. Lack of awareness and misconceptions about performance in high-mileage operations also play a role.
Tyre manufacturers and sustainability advocates are calling for better education and incentives. Some suppliers now offer warranties, and performance guarantees to reassure operators. Experts suggest that embracing retreads could save UK fleets millions annually while reducing environmental impact.
As pressure mounts from regulators and customers for greener practices, retread tyres represent a practical step toward cost efficiency and carbon reduction. Fleet managers who act now will gain a competitive edge in both compliance and sustainability.
Budget Bombshell: Fleets to bear the brunt of new EV tax?
In the forthcoming Autumn Budget to be announced on 26 November, Chancellor Rachel Reeves is expected to announce a new pay-per-mile tax on electric vehicles (EVs), charging drivers 3p for every mile from 2028.
The move aims to recoup revenue lost from fuel duty as drivers move away from petrol and diesel cars. The proposal has sparked debate over its potential impact on EV adoption and fairness for motorists.
The proposed levy could have a significant financial and operational impact on fleet operators, taxi companies, and couriers, by increasing running costs and potentially slowing down the transition to electric vehicles.
Cost is a major barrier to EV adoption, and adding a new tax could reduce the financial savings that are a key incentive for going electric.
The proposal has been met with criticism from the Society of Motor Manufacturers and Traders (SMMT) who have described it as “the wrong measure, at the wrong time”.
Fleet managers are now re-evaluating their strategies, with some considering shorter-term leasing arrangements to navigate the financial uncertainty ahead.
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The industry now awaits the details of the Budget, hoping for a plan that balances fiscal needs with the drive for more sustainable transport.
Weathering the Winter: Protecting Your Fleet from Snow and Salt Damage
As temperatures drop and snow begins to fall, a hidden threat emerges for fleet operators: road salt. While vital for road safety, salt is a corrosive agent that can wreak havoc on commercial vehicles, leading to rust, mechanical failure, and costly downtime. Protecting your assets calls for a proactive approach.
The best defence begins before the first snowflake. A pre-winter maintenance plan is essential.
The undercarriage and chassis are the most vulnerable areas. Inspect for existing rust or damage and apply a high-quality, protective undercoating. Waxy or oily barrier films are highly effective at sealing out moisture and salt.
Apply a durable wax or sealant to painted surfaces. This protective layer repels water and salt, preventing paint damage and making subsequent cleaning easier.
Ensure all fluids, especially engine coolant and windshield washer fluid, are winter rated. Check tyre pressure and tread depth and consider using winter-specific tyres for better traction and safety.
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Once winter arrives, the fight against corrosion becomes a daily battle and the single most effective tactic is a quick, daily rinse of the undercarriage.
A high-pressure wash at the end of a shift, even if it’s just for five minutes, can remove enough salt and slush to prevent it from causing damage overnight.
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If possible, park vehicles in a garage or under carports to prevent snow and ice buildup. This minimises the time moisture spends in contact with the vehicle's surfaces.
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By implementing these straightforward, proactive strategies, fleet managers can significantly reduce the corrosive effects of the winter weather, safeguarding their investment and ensuring the fleet stays on the move throughout the coldest months.
Driving Force: Why the HGV Sector is Recruiting Now
The logistics industry is highly seasonal, and the current time (autumn/winter) marks the beginning of the industry's busiest period.
The sector is the "backbone" of the UK economy, yet it continues to face a significant shortage of Heavy Goods Vehicle (HGV) drivers. This persistent demand, coupled with rising salaries, government training initiatives, and a push for improved working conditions, means that there has never been a better time for new recruits to get behind the wheel.
Despite recent efforts to address the shortfall, the UK still needs thousands of new drivers annually to meet demand and replace an ageing workforce. The average age of an HGV driver is currently 51, with many approaching retirement, creating a significant and ongoing need for fresh talent across the sector.
This demand ensures a high degree of job security, a valuable asset in an uncertain job market. From delivering food to supermarkets and materials to construction sites to supporting the e-commerce boom, HGV drivers perform a vital role essential for keeping the country moving.
Demand for HGV drivers surges by an estimated 15-20% leading up to and during the Christmas holidays to handle increased retail and commercial shipments.
There is additional need for HGV drivers in specific sectors, such as delivering essential winter supplies like salt and grit, and fuel during the colder months.
Entering the industry now allows recruits to immediately tap into this heightened demand, offering ample opportunities for overtime, bonuses, and quick entry into the workforce.
Rodents Are Driving Up Fleet Insurance Costs — What You Need to Know
The insurance industry is sounding the alarm over a significant surge in claims related to rodent damage, a trend that is driving up both the frequency and cost of repairs for motorists.
The mischievous critters are causing costly damage to vehicles, frequently chewing wiring and cabling affecting various components. They also build nests in engine bays, behind airbags and gnaw on interior parts like seats and carpets. Fuel and water leaks can occur if pipes are affected, with Aviva reporting an instance where a single vehicle sustained over £24,000 of damage.
While many are aware of rodent damage to property, the risk to vehicles is often underestimated as rats and mice seek warm places in winter and can enter through small gaps.
The problem appears to be getting worse, particularly during the colder months when rodents look for warmth and shelter in engine compartments and vehicle interiors.
Insurers and experts advise drivers to take steps to prevent rodent damage.
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Remove any food from vehicles.
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Store food in garages in airtight containers.
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Check for signs of rodents if a car has been parked for a while.
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Park in secure garages if possible.
If you see the signs of rodent damage to a vehicle you should contact a mechanic or insurer as soon as possible.
Key DVSA Changes for Fleets, Taxis, and HGVs in 2025
Vehicle Excise Duty (VED) rates have risen across the UK, and taxi operators running older, high-emission vehicles will feel the pinch. With inflation-linked increases and clean-air policies tightening, is now the time to consider upgrading your fleet.
For fleet managers, taxi operators, and HGV firms, keeping up with regulations is crucial. The Driver and Vehicle Standards Agency (DVSA) has introduced a series of important updates in 2025 that will affect compliance, maintenance, and international travel. Here’s a quick breakdown of what your business needs to know to stay on track and manage risk.
HGV: New rules for international journeys
Since April 2025, HGV operators with international routes have had to adapt to new regulations governing drivers' hours and record keeping.
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For international trips, drivers must now carry and produce 56 days of tachograph records on request, doubling the previous 28-day requirement.
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These new rules include changes to rest period exemptions for international journeys.
Operators must retrofit Smart Tachograph Version 2 devices by specific deadlines. The deadline for vehicles currently fitted with Smart Tachograph 1 was August 18, 2025.
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It’s important to note that these changes only apply to international journeys; UK domestic drivers' hours rules remain unchanged.
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Stricter brake and safety tests
The DVSA is continuing to modernise its vehicle testing regime, with tighter rules on brake performance and safety inspections.
Taxi and Private Hire Vehicle (PHV) changes
Operators in the taxi and PHV sector are seeing more stringent safety and licensing requirements
Enhanced background checks
Across the UK, taxi and PHV drivers must now undergo an enhanced DBS (Disclosure and Barring Service) check annually, instead of every three years.
National Minimum Standards
New national minimum standards cover a range of requirements, including clear driver identification and compliance with CCTV rules, designed to increase public safety.
Staying compliant
Navigating these new rules is key to avoiding fines, vehicle downtime, and damage to your operator licence. For insurance providers, a proactive approach to compliance and a commitment to safety are indicators of a well-managed business.
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Make sure to visit https://www.gov.uk/government/organisations/driver-and-vehicle-standards-agency for official information on the current regulations.
VED Changes Hit Older Taxis—Is It Time to Upgrade?
Vehicle Excise Duty (VED) rates have risen across the UK, and taxi operators running older, high-emission vehicles will feel the pinch. With inflation-linked increases and clean-air policies tightening, is now the time to consider upgrading your fleet.
What has changed?
VED is an annual tax for vehicles used on UK roads. It’s calculated based on COâ‚‚ emissions, fuel type, and sometimes vehicle age. VED rates will increase in line with the Retail Price Index (RPI).
Older petrol and diesel taxis with high emissions will see the steepest rises although electric vehicles (EVs) and hybrids remain cheaper to tax, though some exemptions are ending.
How does this impact Taxi Operators?
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Cost: Annual VED for older taxis could rise by £50–£150 depending on emissions.
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Insurance: Higher emissions often mean higher premiums.
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Compliance Risk: Low Emission Zones (LEZ) and Ultra Low Emission Zones (ULEZ) add extra charges for non-compliant vehicles.
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Why Upgrade?
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Financial Incentives: Lower VED and potential insurance discounts for EVs.
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Fuel Savings: EVs and hybrids cut running costs significantly.
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Futureproofing: Avoid penalties and restrictions as clean-air policies expand.
Conclusion
VED hikes are more than a tax increase—they signal a shift toward greener fleets. For taxi operators, upgrading now could mean long-term savings and compliance peace of mind.
How Your Fleet Is Getting a Brainy Upgrade
Your company fleet is getting smarter, and it’s about more than just a sat-nav. Thanks to some serious tech upgrades, those delivery vans and service vehicles are basically growing brains, and it’s changing the game for business owners. It’s all down to something called telematics, which has moved on a lot from just putting a GPS tracker in a vehicle.
Think of it like this: Instead of just tracking where your vehicle is, modern telematics is like having a co-pilot, a mechanic, and a driving instructor all rolled into one. It’s a super-smart system that keeps an eye on everything, from how your drivers are performing to what that little engine light actually means. This isn't about micromanaging; it's about making sure everyone gets home safe and the business runs smoother than ever.
The shift is from waiting for a problem to happen to stopping it before it even starts. An advanced telematics system can spot if a part is wearing out and let the fleet manager know. This means a quick fix in the garage rather than a costly breakdown on the road, which is a win-win for everyone. And with the price of repairs going up, that kind of heads-up is a lifesaver for the budget.
In a world where every penny counts and delivery speed is key; this isn’t just a nice gadget anymore. For fleets looking to stay ahead of the game, putting a brain in their vehicles is the new must-have.
Are Fleets Electric?
The future of company cars and vans is electric—that much is clear. But while the electric vehicle (EV) buzz is all about saving the planet and reducing fuel costs, the road to a fully electric fleet is rocky, and everyone from business owners to insurers is feeling the bumps.
Think about it: switching from petrol to electric isn't just a simple car swap. You have to consider a lot more than just the vehicle itself.
First up, the battery. It's the heart of the EV and even a small fender-bender could spell disaster, as a damaged battery often means writing off the entire vehicle. That's a lot of money and a lot of waste. The industry is trying to figure out how to repair these things instead of just scrapping them, but that takes time, money, and specialist skills.
Then there's the repair work. With so much high-tech and high-voltage gear under the bonnet, fixing an EV isn't like fixing a regular car.
The good news is that the industry is starting to get a handle on all this. Governments are offering grants to help businesses with the upfront costs of going electric, and insurers are using smart technology to get a better picture of who's driving safely. It's a work in progress, but the journey towards an electric future for company vehicles has definitely hit its stride.
Don't Phone Home
That quick peek at your phone could cost you more than you think. A few years ago, the rules around using your mobile phone behind the wheel changed, and the consequences for getting caught can be a major headache for both your driving record and your insurance.
Since March 2022, it's been illegal to use a handheld mobile phone for virtually any reason while you're driving—not just for making calls or texting. This includes everything from scrolling through a music playlist, taking a quick photo, or checking your texts. The rule applies even if you're stopped at traffic lights or stuck in a jam, because as long as your engine is running, you're considered to be driving.
Getting caught is more serious than ever: you'll face a £200 fine and six points on your licence. For new drivers who passed their test in the last two years, that's enough to lose your licence completely, forcing you to start all over again.
So, what does this mean for your insurance? A conviction for using a mobile phone while driving is a big deal for insurers. It marks you as a "convicted driver" and a higher risk. This can cause your premiums to go up significantly—sometimes by as much as 50%. In some cases, insurers may even refuse to offer you cover at all.
In October 2025, news emerged about a new report from MPs calling for stronger sentencing for drivers who kill or seriously injure others. While these are not yet laws, they indicate a direction towards stricter penalties for road offences, which could include repeat mobile phone offenders.
The message is simple: distraction behind the wheel isn't worth the risk. A hands-free device, securely mounted out of your line of sight, is still allowed for things like navigation, but the safest option is to put your phone away entirely. It's the best way to protect yourself, other road users, and your pocket.


