Vehicle impoundment warning issued to drivers following major rule change
Brits have been urged to check their car insurance renewal date following a rule change, which could leave thousands at risk of having their vehicle impounded. Experts at Quotezone.co.uk[1] have warned that drivers who are most at risk are those unknowingly driving uninsured. It’s estimated around 200,000 vehicles are seized and impounded by the police[2] every year in the UK, according to Driving.org.[3] The most common reason for this is driving or parking on public roads without insurance.
According to the Motor Insurers’ Bureau[4], there are an estimated one million uninsured drivers on UK roads. The penalty for driving without insurance is a fixed fine of GBP300 and six points on your licence. However, there is potential for the severity to escalate[5] to an unlimited fine, disqualification from driving and even the cease and destruction of the vehicle, should the matter go to court.
As of January this year, a car insurance rule change by the Financial Conduct Authority meant insurers could not ‘walk up’ your insurance premium when it came to renewal time. Insurers must give all customers, not just new customers, access to the most competitive offers. With these changes came updates to the auto renewal process, making it easier for people to opt out or cancel their automatic renewal.
This means it is more important than ever for drivers to remember when their car insurance policy needs to be purchased again – or this could lead to an increase in drivers unaware their insurance has expired. Experts at Quotezone.co.uk[6] analysed a sample of over 5,000 impounded vehicles throughout 2023, with the average driver found to be 35 years old, with no prior claims or motoring convictions. The team noticed a surge in demand for impound insurance across the last quarter, up 33 per cent from August to September and up a further 12 per cent from September to October.
Lee Evans, impound insurance expert from comparison site Quotezone.co.uk, said: “Driving without insurance is one of the most common motoring offences in the UK, with around one million uninsured drivers across our roads. Interestingly, the data suggests the issue could simply be an oversight in many cases, with lapsed or out-dated insurance paperwork, given the average culprit has no prior offences. “It could be that recent changes in renewal legislation earlier this year are beginning to have a knock-on effect.
It’s important to double check important documents regularly or set reminders for key dates such as insurance and MOT renewals and driving licence expiry, to ensure details are up to date and that you are fully insured on the road. Worryingly, one of our recent surveys found 39 per cent of people don’t read their insurance terms and conditions in full.” He added: “For those caught without insurance, they could face fines, disqualification from driving, impound charges and penalty points – which can increase insurance premiums by five per cent for three penalty points and 25 per cent for six points if they’re starting from a clean licence.
Plus, they’ll need to take out additional ‘impound’ insurance in order to have the vehicle released from the pound.
Drivers are warned to check their car insurance renewal date after a rule change could leave their cars at risk of impounding (Image: Getty Images)
“Although car insurance premium prices are continuing to surge, with the 35-44 year old age group seeing a spike of approximately 14 per cent this year to an average of GBP712, comparison sites can help drivers compare products and find savings. Plus, there are ways drivers can help keep costs down, such as parking their car in a private driveway, keeping mileage to a minimum and avoiding modifications.” However, it’s not just a lack of car insurance that could get your car impounded.
Other issues such as stolen, involved in a collision, driving without a licence, parked illegally, untaxed, involved in a crime, driven in an antisocial manner, causing an obstruction or danger and abandoned after an incident involving the police can all see the vehicle impounded. Drivers won’t be allowed to reclaim their impounded vehicle without impound insurance, a short-term motor insurance policy that is intended to cover your vehicle for at least 30 days. They’ll also need to take ID, proof of vehicle ownership, a valid driving licence and proof of MOT to the pound to collect it.
If drivers opt not to take out impound insurance then they won’t be allowed to reclaim the vehicle but they’ll still need to go to the pound and ‘disclaim’ it – a process of formally declaring that they don’t want to reclaim the vehicle, this means they are no longer responsible for tax and insurance and the vehicle will be scrapped or sold at auction immediately.
References
- ^ Quotezone.co.uk (www.quotezone.co.uk)
- ^ police (www.nottinghampost.com)
- ^ Driving.org. (www.driving.org)
- ^ Motor Insurers’ Bureau (www.mib.org.uk)
- ^ severity to escalate (www.gov.uk)
- ^ Quotezone.co.uk (quotezone.co.uk)