Motorists caught using mobile phones while driving could have their insurance premiums increased by up to one-third.
Allianz Insurance now treats it the same as a careless driving offence, and other insurers are expected to follow.
Previously, Allianz dealt with hand-held mobile phone convictions as if they were a routine speeding conviction, which incurred three penalty points.
According to the AA, the average motor insurance policy is 629, so if premiums do go up by a third, those convicted of driving while using a mobile phone face an average rise of 208 a year for their policy.
It has been illegal to use a hand-held mobile phone while driving since December 2003.
The charge is now a 60 fine and three penalty points. However, it is not illegal to use a hands-free phone when driving.