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Warning over car insurance crackdown

Warning over car insurance crackdown

Category: Car insurance

Updated: 26/11/2012
First Published: 19/04/2011

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 It is now over 6 months old so the content may be out of date.

The majority of motorists are unaware that it is now an offence to keep a vehicle that is uninsured, rather than just to drive without car insurance.

New legislation has seen the DVLA awarded the power to take action against those who ignore warnings to get their vehicle insured.

Under the new system, motorists will receive a letter telling them that their vehicle appears to be uninsured and warning them that they will be fined unless they take action.

If the keeper fails to insure the vehicle they will be given a £100 fine.

If the vehicle then subsequently still remains uninsured - regardless of whether the fine is paid - it could then be clamped, seized and destroyed.

Government figures show uninsured drivers injure 23,000 people each year and add £30 to every responsible motorist's premium.

Around one car in every 25 being driven on Britain's roads is thought not to have insurance.

The only way a car can be kept without any insurance is if it is subject to a Statutory Off Road Notification (SORN).

However, awareness of the new rules remains a problem.

According to an AA/Populus study, six out of 10 motorists had not heard about the new law.

Of the balance who were aware of it, more than a third admitted they did not know what it means.

If you need car insurance, shopping around for the very best car insurance deal is essential.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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