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Harsher car insurance rules come into effect

Harsher car insurance rules come into effect

Category: Car insurance

Updated: 26/11/2012
First Published: 20/06/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Motorists have been warned that they will face harsh measures if they are found to be driving without insurance.

From today, drivers must declare that their car is off the road if they do not intend to buy an insurance policy.

It means that it will now be an offence to keep an uninsured vehicle, rather than just drive when uninsured.

People who are uninsured will first receive a warning letter, followed by a £100 penalty.

If the vehicle remains uninsured – regardless of whether the fine is paid – further action will be taken.

Drivers could see their vehicle clamped, seized and destroyed or face court action, where a fine of up to £1,000 could be imposed.

It is estimated that there are some 1.4 million vehicles in the UK that are not insured.

"Uninsured drivers are a danger on our roads, killing 160 and injuring a further 23,000 people each year, and they cost honest motorists £500 million in extra premiums," said Mike Penning, Road Safety Minister.

"That is why we are introducing this tough new law which will leave uninsured drivers with nowhere to hide.

"Our message is clear – get insured or face a fine, court action or seeing your car seized and destroyed."

Drivers caught under the new rules will also get a criminal record and face hikes in their future insurance policies.

A joint awareness campaign by the DVLA and the Motor Insurers' Bureau will be launched later this month.

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