New insurance law in force

A new law cracking down on uninsured drivers came in to force on the 21st June 2011. The new law puts the responsibility of proving they have valid insurance cover on the registered keeper of the vehicle. The new law means that the keeper of a vehicle must keep it insured unless they’ve declared it SORN. If you’re not insured and the car hasn’t been made SORN, the owner could face a fixed penalty of £100, have their car wheel-clamped, impounded or destroyed or face a court prosecution.

According to the British Insurance Broker Association uninsured drivers cost the industry around £500m a year because of the accidents they cause and this burden is typically deferred onto law-abiding drivers by increased insurance premiums.

According to the Motor Insurers’ Bureau uninsured drivers kill 160 people a year and injure 23,000 more. And as many as 1.4 million drivers could currently be driving without valid insurance pushing the cost of your insurance up.

With the new law registered keepers who are found to be driving uninsured will first be sent a warning letter followed by a £100 penalty. If it then still remains uninsured or not declared SORN, it can be claimed, seized or destroyed.

The hope is that the new insurance law will encourage more motorists to take out car insurance and hopefully also reduce the premiums for those who already do. People who are concerned about the insurance status of their car, can check with the Motor Insurers’ Bureau online to see whether the vehicle appear on their database or not.

The new law will hopefully reinforce that whenever you buy a car, you should always make sure you also get your car insured, regardless of whether you’re buying a new car in London or a used car, Chingford.