Continuous car insurance- good news for whose pocket?
The insurance companies obviously don’t have it sewn up enough already. It's not enough that you need to have car insurance, now you need to have seamless car insurance unless you are declaring your car off road with a SORN.
Of course, car insurance is compulsory, and even those little toe-rags who choose to drive without it know they are being illegal. Still, with annual quotes of £15,000 (for my 18 year old brother), you can perhaps understand, if not condone, their actions. However, the new Continuous Insurance Enforcement scheme aims to clamp down on uninsured drivers by matching the DVLA and insurance company registers to make sure every car that is not statutorily off-road is insured. Or you face a £100 fine, followed by clamping, seizing, and squishing.
The new law came into effect on Monday but the Government has declared an enforcement amnesty until late June, giving drivers the chance to get insured if they are not.
But what does it mean for your pocket?
Well, it is estimated that the 1.4 million uninsured vehicles in the UK adds around £30 to every law-abiding policy, so naturally the insurance companies will be making sure that £30 saving is passed on to every customer*.
But aside from this massive saving, those on holiday or in hospital, or otherwise unable to drive or use their car must still insure the thing, even though they cannot use it. This is not a money saving measure. Also, how many suckers are the insurance companies going to catch by auto-renewal knowing that the policy can’t be allowed to lapse?
Interestingly, the law will apply in England, Scotland and Wales but not in Northern Ireland. And remember, if you do want to declare your vehicle off-road, it actually has to be off the road, ie on a driveway or in a garage. If it is in any part on land that is not yours, eg the road, a grass verge, the pavement, it cannot be off-road. Sorry.
*this is sarcasm.