Vehicle Insurance

Vehicle insurance law means that your vehicle must be kept insured at all times. As well as being a legal requirement you also have a contractual requirement to keep your vehicle insured on a fully comprehensive motor policy during the period of your agreement with us. It is your responsibility to arrange comprehensive insurance against loss or damage to the full retail replacement value of the Vehicle. You should also consider having additional GAP insurance cover

It is a serious criminal offence to drive a vehicle without insurance and your contract with us does not permit you to drive without valid fully comprehensive insurance in place. This breach of contract may result in enforcement action including the repossession of your vehicle.

If your vehicle is found to be uninsured an Insurance Advisory Letter will be issued by the Motor Insurers’ Bureau to the registered keepers of uninsured vehicles. This will be following a check of the Motor Insurance Database – the UK’s central record of vehicle insurance. The Insurance Advisory Letters will advise the registered keeper that their vehicle appears to have no insurance and what actions to take to avoid receiving a fixed penalty from DVLA.

If a vehicle does not have insurance, the registered keeper could:
– Receive a fixed penalty of £100
– Have their vehicle wheel-clamped, impounded, or destroyed
– Face a court prosecution, with a possible maximum fine of £1000

Continuous Insurance Enforcement laws affect anyone who owns and keeps a vehicle. The scheme is supported by the Department for Transport, DVLA, the insurance industry and the police will be a crucial tool to further reduce the level of uninsured driving.

Anyone keeping a vehicle which does not appear on both the DVLA and the Motor Insurance Database records will be contacted with notice advising them to declare the vehicle off road (SORN) or to purchase appropriate insurance.

The Continuous Insurance Enforcement scheme will use vehicle registration details to identify registered keepers with no insurance.