New continuous insurance law from today

A new law to crack down on uninsured vehicles takes effect today, 20th June 2011. Unless the vehicle is on a SORN or has been off the road since 1998, it must be continuously insured.

There is no place to hide.

Penalties range from a £100 reminder fine to 6 points, substantial fines, confiscation of the vehicle and possible destruction of the vehicle.

You can check if your car is registered as insured at www.askmid.com

The new Continuous Insurance Enforcement law makes it an offence to be a keeper of an uninsured vehicle rather than just driving while uninsured.

From today registered keepers identified as having an uninsured vehicle will be sent a letter telling them that their vehicle appears to be uninsured, and warning them of the consequences if they fail to take action.

Those who do not act on this warning - either by taking out insurance or declaring their vehicle off the road - will receive a £100 fine and could have their vehicle clamped, seized and destroyed.

In addition to losing their vehicle they may also face a court prosecution leading to 6 penalty points and a £1,000 fine.

Road Safety Minister Mike Penning said: "Anyone who receives a warning letter should take action immediately by getting insurance or contacting the DVLA (Driver and Vehicle Licensing Agency) to declare their vehicle off the road."

The Motor Insurers' Bureau chief executive Ashton West said: "We know who the registered keepers are with vehicles that have no insurance and letters will be dropping on to their doormats from this week. It's no longer a case of if you will get caught, but when you will get caught.

"An estimated 1.4 million drivers are flouting the law by driving without insurance. This is a serious offence and results in accidents that cause about 160 deaths each year and more than 23,000 people are injured by uninsured drivers. It also adds around £30 per year to honest drivers' motor insurance policies."

This is in addition to the £150 a year added to ther average policy as a result of the activitieds of Accident Management Companies pursuing spurious personal injurty claims, estending reapir times and putting crash victims into 'Credit Hire' cars.

Obviously once Continuous Insurance puts uninsured drivers off the road, we can all benefit from a reduction of an average £30 per year to honest drivers' motor insurance policies. And pigs will fly.

More informationa bout Continuous Insurance here: Direct: Continuous Insurance

More information about declaring a SORN here: Direct: Declaring a SORN

Motor traders need to take care that their trade licences are registered with www.askmid.com and must regularly update the lists of the cars they have in stock that are covered by their trade insurance.

 

 

Comments

Add a comment

 

Ask Honest John

Value my car

Amount to borrow
Sorry. The minimum loan amount is £1000
To pay back over

My credit score

Best available rate 9.20%

Total repayment £9,304.93

Total cost of credit £1,804.93

£155.08

60 monthly payments

Apply now

Representative example

The Representative APR is 13.2% (fixed) so if you borrow £7,500 over 4 years at a rate of 13.2% p.a (fixed) you will repay £199.21 per month and repay £9562.20 in total.

CarFinance 247 Limited is acting as an independent credit broker