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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
MSE_GuyMSE_Guy MSE Staff
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edited 30 November -1 at 1:00AM in Insurance & Life Assurance
This is the discussion thread for the following MSE News Story:

"All motorists in Great Britain will have to insure their vehicle unless it is formally declared off-road ..."
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Replies

  • I find the new rules most annoying.
    I'm disabled, and don't use the car much - both for financial reasons, and the fact I'm not safe to drive much of the time.
    Previously, I was able to tax the car, and keep it in a locked garage off-road.
    I was able to insure it on a one-day policy, for the comparatively few days a year I used it.
    This about halves the cost of the required insurance, though admittedly does not build up
    no-claims discount.

    The simple and easy way for the government to fix this was to compell the insurance
    companies to make the motor insurance database live.

    An insured vehicle would always be on the database - at the moment it's not, it takes
    several days often.

    If this was made live, then police could easily find uninsured drivers, as could ANPR cameras.

    However, the cheaper option was to simply do a database search of the DVLA records and the
    insurance database, then send out letters.

    The fact it's not possible to declare SORN without voiding your tax disk means that you can't
    avoid this by taxing the vehicle for short periods.

    In effect, a 200 pound/year tax.

    Depressing.
    I do hope that some insurers begin to offer policies that cover cars locked in garages.
  • glider3560glider3560 Forumite
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    rogerblack wrote: »
    If this was made live, then police could easily find uninsured drivers, as could ANPR cameras.
    It would only find uninsured cars, not uninsured drivers. Just because the car has insurance, doesn't mean the driver is insured to drive it.

  • glider3560 wrote: »
    It would only find uninsured cars, not uninsured drivers. Just because the car has insurance, doesn't mean the driver is insured to drive it.

    Very true - and the converse of course.
    There are also policies that will cover you to drive any car.

    However, the proposed scheme won't find drivers who are uninsured driving in vehicles that are insured either.
  • Andy_LAndy_L Forumite
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    rogerblack wrote: »
    I find the new rules most annoying.
    I'm disabled, and don't use the car much - both for financial reasons, and the fact I'm not safe to drive much of the time.
    Previously, I was able to tax the car, and keep it in a locked garage off-road.
    I was able to insure it on a one-day policy, for the comparatively few days a year I used it.
    This about halves the cost of the required insurance, though admittedly does not build up
    no-claims discount.

    The simple and easy way for the government to fix this was to compell the insurance
    companies to make the motor insurance database live.

    An insured vehicle would always be on the database - at the moment it's not, it takes
    several days often.

    If this was made live, then police could easily find uninsured drivers, as could ANPR cameras.

    However, the cheaper option was to simply do a database search of the DVLA records and the
    insurance database, then send out letters.

    The fact it's not possible to declare SORN without voiding your tax disk means that you can't
    avoid this by taxing the vehicle for short periods.

    In effect, a 200 pound/year tax.

    Depressing.
    I do hope that some insurers begin to offer policies that cover cars locked in garages.

    How do you manage to tax the car in the 1st place without having proper (ie non-day insurance) on it?

    I suspect the V890 will be changed so you can use it to declare SORN without having to surrender the tax disc. After all, at the moment, it is pointless declaring SORN if you have a valid tax disc.

    Plenty of insurers already provide "laid-up" insurance for unused cars.
  • vaiovaio Forumite
    12.3K posts
    Yep, but the laid up insurance doesn't include RTA cover so would still fall foul of the new law

    Which, incidentally strikes me as a particularly badly thought out pointless waste of time which is going to do nothing to reduce uninsured driving and lots to add revenue streams to DVLA & the insurance companies.

    Does anyone know when it is actually going to start? I keep hoping it’s one of the Labour party ideas that is quietly going to be dropped.
    Dangermac wrote: »
    I agree with you......

    DM
  • Andy_L wrote: »
    How do you manage to tax the car in the 1st place without having proper (ie non-day insurance) on it?

    I don't recall that being a requirement.

    I suspect the V890 will be changed so you can use it to declare SORN without having to surrender the tax disc. After all, at the moment, it is pointless declaring SORN if you have a valid tax disc.
    I have a reply from the ministers office that there are no plans for such.

    Plenty of insurers already provide "laid-up" insurance for unused cars.[/QUOTE]

    However - these policies actually cover you for risk, which costs.
    I do not want a policy that covers me for fire, theft, accidental damage, or acts of terrorism.

    I want a policy that solely covers me for the risk of the vehicle being stolen from the locked garage, and left on the public highway, until I can recover it (at my own cost, after having arranged suitable insurance)
  • corbyboycorbyboy Forumite
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    Realistically how many people is this going to affect? Do many people keep their car in the garage uninsured? What if somebody steals it or the roof of the garage falls in. Car insurance doesn't just cover you if you cause a crash.
  • edited 14 February 2011 at 9:03PM
    rogerblackrogerblack Forumite
    9.4K posts
    edited 14 February 2011 at 9:03PM
    Me, for one.


    I'm not claiming a large number of people are in my position, however, the government suddenly deciding I have to pay a couple of hundred pounds extra a year, with no benefit to anyone other than the insurance companies, stings a bit.

    I am quite capable of maintaining my garage to make the chances of the roof falling in vanishingly small.

    Someone stealing it is indeed a real possibility - from a locked garage in a low crime area, with a 1.0l car with an immobiliser.
    If someone steals it, and causes an accident, they would not be covered by any insurance.
    Insurance would only kick in once they get out of the vehicle, and if they've left it in a public place, I would indeed have committed an offence.

    I find this to be vanishingly unlikely enough, that I'm quite happy to take the risk, as I do now.

    This risk still applies to SORN'd cars, of course.

    I will now be required, if I wish to use the car every couple of weeks, to get it continually insured.
    I was previously able to get it insured on a day-day basis, at a considerable saving, with the car remaining in a locked garage in between periods of insurance.

    A bit of googling finds: http://www.legislation.gov.uk/uksi/2011/20/pdfs/uksiem_20110020_en.pdf - this is the explanatory note to the statutory instrument amending the road traffic act to get it into a state where the next instrument can bring those provisions into force by setting enforcement actions.
  • stoltstolt Forumite
    2.9K posts
    I guess once it goes live, everyone is getting a £30.00 discount on there car insurance. I'm all for making sure everyone has insurance but i dont like the fact that they keep saying your premiums go about because of the uninsured people.
    Listen to what people say, but watch what people what people do!!
  • glider3560glider3560 Forumite
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    stolt wrote: »
    I guess once it goes live, everyone is getting a £30.00 discount on there car insurance
    People will still drive uninsured. This system won't solve any problem other than creating a nice cash flow.

This discussion has been closed.

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