- Car insurance quotes
- Great cover deals for all your insurance needs
Under the impression that it might be cheaper to lock up your car and take the bus rather than face the expense of having to insure it? You might have to think again.
The latest idea from the government is to clamp and then seize any uninsured cars, regardless of whether they are being driven or not.
The idea is a draconian extension of the relatively new rules that gave police the power to confiscate the cars of uninsured drivers at the roadside. Before that, officers could only issue a court summons that allowed uninsured drivers to stay on the road as well as keep their motors until they went to court.
As ever, the proposed tougher new rules aren’t intended to penalise law-abiding motorists but are aimed at tackling the estimated two million uninsured rivers who the Government says are responsible for 160 deaths a year.
Don't forget to renew
No-one could argue with that. But if the new rules do come in, forgetting to renew your motor policy before jetting off on holiday could result in a nasty surprise on your return.
Although still only under discussion, the new law will make it an offence to be the registered keeper of an uninsured car, whether or not the vehicle is being used and regardless of whether it has a valid tax disc or is being kept on private property.
The only way to avoid a fine will be to go through the bureaucratic process of making a Statutory Off Road Notification (SORN) to the Driver and Vehicle Licensing Agency (DVLA).
Under the new system, every driver’s insurance details will be checked by the DVLA at least once a month and where a policy has lapsed, the DVLA will initially send out a reminder letter.
If you ignore it, a fixed penalty – probably of £100 - will be issued. Ignore this (as around a third of people receiving such a penalty do) and the result is likely to be a summons to court with a £1,000 fine and a criminal record to boot.
There’s a potential problem in that the DVLA will be relying on insurers to supply them with the details of those whose insurance policies have lapsed. The AA is concerned that some drivers may be accused of being without cover if they decide to change insurers.
Uninsured Drivers Cost Us £400m a Year
But you shouldn’t allow this possibility to dissuade you from looking for the best deal each and every year.
There is another plus side to this proposal that goes beyond trying to keep uninsured and often dangerous drivers off the road.
The Department of Transport reckons uninsured rivers add an average £30 to every motorist’s annual premium, amounting to a massive £400m extra that lawful drivers need to find to cover the sins of those who choose not to pay.
Whether the new law, if introduced, will have a real impact on lowering premiums for law-abiding drivers has yet to be seen. But any measure than reduces the overall cost of insurance, has to be a good thing.
The flip side, however, will be that lawful drivers will have to be very careful to make sure there are no gaps in insurance cover. And there are financial implications with this.
Maybe you’re one of the few who are careful to take advantage of being away over the summer holidays after your insurance has lapsed only to renew your policy on your return.
Much more likely, however, is that you’ll be tempted to pay your annual premium by direct debit so there is no chance of your missing that all important renewal date. That’s fine as it goes. One of direct debit’s most popular features is that it allows you to “forget” all about the hassles of renewal.
Loyalty to Your Insurance Company Doesn’t Pay Off
The problem is that direct debit also encourages you to forget about looking for the best deal each time your policy is up for renewal.
Loyalty to one insurance firm simply doesn’t pay off. In order to get the best deal, it is vital to shop around every year. This isn’t to say your current insurer won’t turn out to deliver the best price. But without them being made aware you’re prepared to go elsewhere if they don’t deliver, it’s unlikely they’ll offer their best terms automatically.
Although you’ll surely be able to find the best deal online, there’s every chance that when you phone your current insurer, they’ll ask you the best price you’ve been quoted – and often try to match or beat it – in order to retain your custom.
The simple truth is that while direct debit is convenient for all parties, it suits the payee best of all. Using direct debit doesn’t mean you should forfeit your right to the best deal you can find. So make sure you don’t get caught by this simple trap that snares the majority.
