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MSE News: Warning over new compulsory car insurance rules

edited 30 November -1 at 1:00AM in Insurance & Life Assurance
93 replies 13.1K views
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  • This seems like a con to me , i have an older car which i keep to use just a month in the summer but under these new laws i will have to buy a years insurance , tax the car , use it for the month and THEN cancel the insurance and lose money then hand the tax back and AGAIN lose money , while searching on-line i have found out this scheme was spearheaded not by the government but get this everyone it was by the association of insurers and i wonder why ? and of course the government have gone along with this because who do you think the biggest tax payers in the country are ? you guessed it insurance company's
  • Rover_DriverRover_Driver Forumite
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    charlie83 wrote: »
    This seems like a con to me , i have an older car which i keep to use just a month in the summer but under these new laws i will have to buy a years insurance , tax the car , use it for the month and THEN cancel the insurance and lose money then hand the tax back and AGAIN lose money , while searching on-line i have found out this scheme was spearheaded not by the government but get this everyone it was by the association of insurers and i wonder why ? and of course the government have gone along with this because who do you think the biggest tax payers in the country are ? you guessed it insurance company's


    If it is not on the road and SORN when you are not using it, the SORN declaration covers the tax and insurance requirement.
  • Andy_LAndy_L Forumite
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    charlie83 wrote: »
    This seems like a con to me , i have an older car which i keep to use just a month in the summer but under these new laws i will have to buy a years insurance , tax the car , use it for the month and THEN cancel the insurance and lose money then hand the tax back and AGAIN lose money ,/QUOTE]

    What do you do differently at the moment then?
  • MSE_GuyMSE_Guy MSE Staff
    1.7K posts
    I've been Money Tipped! Newshound! Chutzpah Haggler
    My ignorance about the difference between a motor caravan and a caravan. Corrected.
    Quentin wrote: »
    Just scaremongering! (Or did the article mean "motor caravans"?)

    Caravans do not have to be insured to take them on the road!
  • For me its a law that will penalise the minority and protect the majority. Whilst people will still drive uninsured and there will be some that lose out I suspect you will find these figures go down and that the day of the bangers in the driveway uninsured and unmoted will reduce thus increasing protection for most.

    I do accept some people will lose out but I would imagine those with fully roadworthy cars sitting that barely use them and hence insure them on temporary policies will be very very low.
  • When does my premium go down by £30? :)
    The acquisition of wealth is no longer the driving force in my life. :)
  • GM86GM86 Forumite
    2 posts
    Andy_L wrote: »
    I read GM86's post to mean he's currently keeping uninsured (but taxed) cars on the road while he fixes them up, which is naughty but currently unlikely to be found out. With the new legislation he'd be caught out.

    No sorry, I didn't explicitly state that I kept the car off the road on the driveway and currently I am perfectly within the law. I thought this would be clear as this is in the public domain.

    However if/when this comes into play it would make no sense to continue as a fast turn around would mean the extra paper work cost of either declaring the car off the road, negating the fact it came with tax, or insuring it/them would add to the cost.

    I.e. I buy a Audi A3, worth 1k i purchased for £500.
    I spend 100 on parts and would normally have it gone within 2 weeks.

    Current Law
    I spend £28 to get the car to my driveway (insurance), £15 on advertising. Call it £10 on petrol to get to me

    £653 total cost giving me 347 profit.

    New Law
    Same parts, has a full tank of petrol
    Insurance 14 days * 28 = 392

    Thus I am now £1007 spent, making it truly a hobby!

    I know there will be other options to this but as it stands it looks like its going to be a pain! Also as I am still young dont assume that going yearld option is best idea I have had quotes for 2.2k for the year
  • edited 15 February 2011 at 5:43PM
    ArgArg
    931 posts
    edited 15 February 2011 at 5:43PM
    For me its a law that will penalise the minority and protect the majority. Whilst people will still drive uninsured and there will be some that lose out I suspect you will find these figures go down and that the day of the bangers in the driveway uninsured and unmoted will reduce thus increasing protection for most.
    I think the policy of confiscating and destroying peoples cars for whatever traffic laws do a whole lot more to enourage people to drive cars that are not as roadworthy as they might be.
  • Surely annual insurance with limited mileage would equate to the daily use insurances and equally if trading you could again get limited annual cover for the level of cover you need. It's got to be cheaper or easier than setting up lots of ad-hoc cover. If daily cover is about £30 (a guess there) then 12 days a year would be as much as I pay for 15000 miles a year.
  • Andy_LAndy_L Forumite
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    I think it all depends on if, when the law changes, you can declare SORN without surrending your tax disc. If you can then I don't think anyone here has any problem.
    I can't find anything official saying what the plan is on that front
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