Continuous insurance: Laws with claws

Yesterday I read an article in the press that caused me some concern and I wondered if you were aware of its immanent introduction. To quote “the new government rules called continuous insurance enforcement, which were launched this month and come into force in the spring, mean that a car must be insured 365 days a year - whether its on the highway, off road in a driveway or a garage'.

The article does not differentiate between cars that are on a SORN. So am I correct that ALL cars irrespective of where they are kept or indeed their roadworthiness must be insured. This I believe is a ridiculous suggestion. What about vehicles that are being renovated, or those classics that are in storage. I also do not believe that those drivers who persistently flout the law will take any notice whatsoever of this new requirement.

Once again the law-abiding enthusiast will be penalised. What needs to be done is make the fines for driving without insurance exceed by far the actual cost of insuring the vehicle and include an instant 5-year driving ban.

Asked on 15 January 2010 by ER, Ipswich

Answered by Honest John
The exemptions are if the car is on a valid SORN, if it has been kept off the road since before 1-2-1998, or if it has been scrapped, stolen or exported and the relevant authorities have been notified. In general, government ministers tend to take advice either directly or indirectly fed to them by lobbyists for those seeking a financial advantage, in this case the private equity firms and investment banks that are now grabbing two or three bites out of the cherry of compulsory car insurance.

Investors make a loss on the actual insurance (that they claw back with hugely increase premiums), but make a profit on the broking and then make a huge profit on 'accident management' credit hire, which is paid for by the increased insurance premiums they also benefit from. You pay £250 more for your car insurance and it goes into some investment banker's multi million pound annual bonus because he’s smarter than you are.

They are laughing at us. See: www.honestjohn.co.uk/news/tax-insurance-and-warran...s
Tags: insurance
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