Why your car might not be there in the morning
New rules set to come into force next month could see uninsured cars seized and crushed, even if they're not being driven
How would you feel if I told that you're handing money to irresponsible drivers by paying high car insurance premiums?
Fairly bemused I’d wager.
Well prepare to start frowning, because it’s the truth. Yes, it’s estimated that £30 a year is added onto each of our car insurance policies because of the 1.4 million people who continue to drive uninsured.
Fortunately the government are attempting to turn the tables on these reckless motorists by introducing legislation next month that will make it illegal to own an uninsured car or van – even if you’re not driving it.
Let’s take a closer look at the new rules...
The new rules
The official name for this new legislation is Continuous Insurance Enforcement and it’s designed to reduce the impact of uninsured drivers on both lives and premiums.
Records kept by the Motor Insurance Database will be compared to those on the DVLA database and any uninsured vehicles identified. This means that if you haven’t got a Statutory Off-Road Notification (SORN) to declare your uninsured vehicle off the road, you’re breaking the law.
If this is you, a letter should drop through your door in a few months' time advising you that you are acting illegally. If this letter is ignored, then authorities can issue a £100 fine, have the vehicle clamped, seized and even destroyed.
The new rules could penalise many law abiding drivers who genuinely forget to renew their car insurance as well as motorists who let their policies lapse while they’re on holiday.
And as the law covers all cars and vans, you’ll have to insure every vehicle you own, even if it’s sat in the garage with no wheels on – or apply for a SORN.
Rachel Robson takes a closer look at the fraudulent practice of fronting.
Getting a SORN
If you do own an uninsured car or van that you never use then you should declare it off the road by getting a SORN.
They’re free to apply for and will save you a lot of hassle when the new insurance laws come in. Just head to this direct.gov.uk webpage and follow the instructions. You will also need to return your tax disc (including nil-value discs) to the DVLA, as well as making sure you store your car on a driveway or in a garage as uninsured vehicles left on the road could still be seized.
It’s also worth checking the Motor Insurance Database if you have car insurance in place to make sure your policy shows up on the records.
Beat car insurance price rises
If your car insurance is up for renewal soon or you’re thinking of buying a new car, there a few things you can do to decrease your cover rates.
As we reported in Avoid the 40% rise in car insurance, premiums for drivers aged between 17 and 22 have shot up over the last few years and it's set to get a lot worse once the European Court Ruling on gender discrimination comes into force. One way to combat these increases is to enrol in the Pass Plus scheme. Pass Plus covers advanced driving skills such as motorway driving and driving at night and claims to reduce premiums for young drivers by 30%.
Choosing the right car is also important. Insurance premiums vary depending on the power of the car, the age of the model and the price of the replacement parts.
Again, if you’re a young driver you’ll probably find it near-impossible to get a reasonably priced premium on a powerful Golf GTI, but buy a pokey little Fiesta and you may pick up a good deal! You should also try to avoid modifying your car – as this will almost certainly up your rates.
Ten tips to beat rising car insurance cost has more great tips including adding a driver to your policy and protecting your no claims bonus.
And for some more sneaky ways to get cheaper cover read Trick your insurer into cheaper premiums - legally.
What do you think?
Some will detect an air of ‘Big Brother’ in these new car insurance laws. And as we reported in Allow your car insurer to spy on you and save £££, this legislation could just be the beginning. Some insurers are now using GPS Telematics technology to keep track of where and when you drive to give them a more accurate picture of how safe you are.
Obviously all of these new policies are intended to keep sensible drivers safe while penalising the irresponsible ones. But will it work and is it too much of a ‘Big Brother’ approach?
Let us know in the comment boxes below.
This is an updated lovemoney.com article.
More: Get a great car insurance deal | Car insurers sharing your secrets behind your back | The end of cheaper car insurance for women
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Comments
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C'mon Robert.... How can you forget to insure your car (or even your house for that matter), as you get reminders, since the insurance companies are eager to get their hands on your 'hard earned'. Not only do I get a renewal notice by post, but because I've used comparison websites in the past - and I'm sure that a high proportion of savvy lovemoney.com readers have too - I get a bombard of e-mails from these before my policy expires. Similarly, it's a bit lame to state that the renewal does not happen when you are on holiday, since that is usually for about 2 weeks. Do you really think that the 'authorities' are that quick in getting the fines and confiscation proceedings sorted for a forgotten renewal in that timeframe? This is after all, the Civil Service you're talking about.... What should be done to those unisured drivers after giving them ample warning, is to confiscate their car and instead of crushing it, sell it at auction (in the same way that HMRC already do with seized goods) and ensure that the proceeds go to a Charity such as RoSPA (any alternative suggestions for the proceeds will be welcomed too, so long as it's not to the Treasury!!). If you're hit by an uninsured driver, then their vehicle should be immediately confiscated by the Police and sold for scrap or even for individual parts if they are worth more that way, with the proceeds going towards the cost of the repairs to the 'victims' repair bill. Any surplus should again go to RoSPA, etc.... What do YOU think?
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Regarding increased premiums despite your car being less valuable, you need to see the bigger picture, The insurance is primarily to pay for the damage you do to others, and you cannot predict the value of what you may hit. Also if you require a new bumper + painting + labour the price will vary very little, it may even cost more to get outdated parts. Any legislation that helps towards stopping the insurance dodgers is welcome, so what if those who forget will suffer also, get a grip, if i forgot i would consider myself duly punnished, all the more reason to get organised.
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This is not a good thing. The current regulations around taxation and SORN are easy to comply with if you have a drive or other space to keep you car off the road, but make life very difficult for many of us who keep our vehicles on the road. The SORN regulations generally favour the better-off sections of society. If you cannot afford to MOT, tax or, now, insure your car, then there is a whole industry making fat profits by trying to catch you out and clamp or tow you. Of course nobody should ever drive a car without insurance, and they should only drive a car without an MOT or tax to or from the test centre. However, there should be a regulation allowing imobilised vehicles to be parked on the road, perhaps for limited periods, without MOT, Tax or insurance.
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14 May 2011