Points record is licence for car insurance firms to raise premiums

I got three penalty points on my driving licence that were removed last month after the statutory four-year period. But when I attempted to renew my car insurance I was told by my provider that it retains points on its records – and charges the consequently higher premiums – for five years. I have paid the price for my speeding offence; surely it's unethical that my provider should punish me for an additional year. DG, Woodford Green, Essex

You've guessed the reason: money. Insurers price their policies according to the perceived risk of a claim. The riskier a customer's profile is perceived to be, the more they'll be charged and, although new laws forbid firms from taking gender into account they are free to use other personal circumstances to calculate premiums.

Most insurers will require details of any endorsements or convictions for the last five years and, although you say this is the only time you've ever been penalised for speeding, if an insurer's claims history shows that customers with speeding convictions are more likely to make a future claim, it will judge you to be a higher risk even after your penalty has expired.