Drivers face insurance bills for cars they don’t use

Drivers who fail to insure cars they own but don’t use are now breaking the law, and could face fines or even having the car destroyed.

New insurance laws came into force on Monday – under the Continuous Insurance Scheme, any car owned must have insurance unless it is specifically declared off road.

However the Government has allowed an amnesty to give drivers time to obtain the necessary insurance – according to consumer website moneysavingexpert.com, enforcement of the new law is likely to begin on 20th June.

Anyone found to have failed to insure a vehicle that has not been declared off road (using a Statutory Off Road Notification of SORN form) could initially be fined £100. Further refusal to insure the vehicle could result in it being clamped, seized or even destroyed.

The rules have been brought in to reduce the number of uninsured vehicles in the UK, which is currently around 1.4 million. By requiring insurance on all active vehicles, the Government will be able to match drivers to insured vehicles.

The law applies to all vehicles, for example classic cars or motorhomes that spend much of their time unused on driveways. Even a lapse of a few days could attract a fine.

Acccording to moneysavingexpert.com while the new law could help reduce the numbers of uninsured drivers, that add £30 to every motor insurance premium, it could also lead to big bills for motorists who simply auto-renew their insurance rather than shopping around.

“Anything that cracks down on uninsured drivers is good news for motorists,” saysmoneysavingexpert.com creator Martin Lewis.

“Yet it’s important any savings for insurers are passed onto customers, who’ve already seen 40 per cent hikes in car insurance in the last year alone.”

He adds that simply auto-renewing with an existing insurer to avoid fines will allow insurers to hike prices knowing they’ve no competition.

“To avoid this, everyone should diarise six weeks before their renewal is due to start the comparison process, as if you wait until your insurer reminds you it’s often too late.”

 by: Andrew Charman