Latest News
If you keep a vehicle, you have to keep it insured
Tuesday, 14th June 2011
From 20 June 2011, under a new system called Continuous Insurance Enforcement (CIE), you will be committing an offence if you keep an uninsured vehicle, rather than just driving it when uninsured.
CIE compares the DVLA registered keepers' database with the Motor Insurance Database (MID) and will then contact uninsured motorists so that they are 'driven' to obtain insurance by an escalating system of penalties.
It could cost you £100
If you're caught without insurance under the new system, you will face a penalty of £100 – which can be reduced to £50 by early repayment.^
What the experts say
Graeme Trudgill, head of corporate affairs at the British Insurance Brokers' Association (BIBA), believes that this is the biggest change to motor insurance law since the second world war.
He commented: "The enforcement of the new law is a bold move to tackle uninsured driving and will make the roads safer. The TV campaign is a welcome insurance industry initiative that will help raise awareness of the new law."
Driving uninsured drivers off Britain's roads
Recent research from comparison website moneysupermarket.com has highlighted that one in six UK motorists admit to driving a car uninsured and that one in six is costing the honest insured drivers about £30 each a year in additional premiums.*
Research has also revealed that motorists who drive without insurance are also likely to skip their annual MOT, are six times more likely to drive an unsafe vehicle, three times more likely to be convicted of driving without due care and attention, and 10 times more likely to have a drink driving conviction.^
However, critics of the new rules say that the deterrent effect of a £100 fine is questionable. For example, figures from the Motor Insurers Bureau (MIB), show that up to 40pc of the cars seized for being uninsured are never reclaimed – because it can be cheaper to buy another vehicle, rather than an insurance policy.^
Here's a steer on where to get cost effective motor insurance
Insure4Retirement, the over 50s insurance specialists, have good value motor cover in their expanding insurance product portfolio.
420 words approx.
* www.moneysupermarket.com – 14/03/2011
^ www.telegraph.co.uk 24/05/2011
