Insurance products for UK residents

Car Insurance: the parked car trap

From today (20th June 2011) all motor vehicles, cars, vans, bikes or whatever must now be either insured or the DVLA must be notified (SORN declaration) that they are off the road.

Our Opinion

In theory this is a sensible posture to take on car insurance. No doubt some people have been trying to run more than one vehicle relying on the 'driving other cars' extension. (Not possible now in practice as a) it must be someone else's car b) that other car must be insured - see a certificate of motor insurance and c) many policies do not give' driving other cars' - a comprehensive policy does not give that benefit automatically - despite what people say.

In practice this is going to be very awkward - if you buy a new car, you must now tell DVLA that your car is off the road or insure it separately while waiting for it to be sold (and the market for second hand cars isn't the best these days, especially for gas-guzzlers.

The avowed reason (to stop people driving their cars while uninsured) also seem a bit pointless - the rogues won't register the cars in their own name - if they bother doing so at all. 

As insurance brokers, of course, we can usually arrange for the old vehicle to be insured as a temporary additional vehicle for up to a month without much problem (usually we don't charge for this service other than the premium the insurance company charge - it is included in our administration fee for processing the change of vehicle.) However if you have bought a policy online then prepare to be ripped off.

For more information contact JB Portwood john.portwood#portwood.co.uk

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