Walker Jack Consultants

Although there is a legal requirement for a car to be insured, and penalties in the form of fines or possible destruction of a vehicle for failing to insure it, there are several exceptions to the rule. Motorists should be familiar with these exceptions as they could prevent financial penalties and criminal proceedings.

SORN

When a Statutory Off Road Notification, or SORN, is made, a car does not need to be insured. An owner must notify the Driver and Vehicle Licensing Agency (DVLA) in Swansea that the vehicle is not going to be used in a public place and will be kept off the road, bearing in mind that roads are public places. Thus, a garage or a driveway would be appropriate places for a vehicle to be kept. SORN should be declared as soon as possible following the decision to keep a vehicle off the road. This may be when the road tax is due for renewal, in which case no payment is required for the tax and no insurance is needed, or at any time during which the vehicle remains in possession of valid road tax and insurance. Any prepaid road tax or insurance will be repaid by the DVLA and the insurer, so it is worth being proactive when it comes to declaring a car as off the road.

Stolen Car

If a car has been stolen, the owner must report the theft as soon as possible to avoid a claim on their insurance. The owner is only protected if the theft has been reported to the authorities. This helps to prevent fraud and thus, to keep insurance premiums down for car owners.

Sold Car

As soon as a car has been sold and taken away, the previous owner is no longer liable for insuring the vehicle. This applies both to private sales and instances in which a car has been passed on to a car dealer. It is important to ensure that the appropriate new ownership details are sent to the DVLA so that the previous owner is not thought to be liable for insuring the car.

Scrapped or Exported Car

If a car has been scrapped or exported permanently, it does not need to be insured. It is essential that the DVLA are informed of a scrapped or exported car.

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It is a legal requirement in the United Kingdom for cars or other motorised vehicles to be insured.  This allows the vehicle to be driven in a public place, but legislation also states that a car must be insured at all times by its registered keeper.  Insurance is there to provide protection for the driver, passengers, the vehicle itself, other motorists and anyone else affected in case of an accident.  It protects the motorist against liability and will compensate people for any injuries they may receive or for damage to property.  There are financial penalties if the registered keeper of a vehicle is not insured; however, there are certain exceptions to this rule.

Exceptions

A vehicle does not have to be insured if a SORN (Statutory Off Road Notification) has been made.  This means that the government, through the DVLA (Driver and Vehicle Licensing Agency), has to be informed if the vehicle is kept off-road and not used in a public place.  Vehicles with a SORN must not be driven.  Insurance is not necessary for a vehicle that has been stolen, as long as the theft has been reported, or if the vehicle has been passed or sold to a car dealer.  There is no need to insure a vehicle that has been scrapped, provided this has been recorded by the DVLA, or one that has been exported permanently.  The DVLA should also have this on record.

Penalties

A keeper of an uninsured vehicle may be liable for a fixed penalty fine of £100, may have the vehicle clamped, impounded or destroyed, or even face a court prosecution with a possible fine of up to £1,000.

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When you apply for a car insurance policy, the amount of information that you are asked for can often seem baffling.  There is a simple reason for this, however, which is that the insurer needs to establish exactly how much of a risk you are likely to be.  Your answers allow them to work out the likelihood of your being involved in an accident or making a claim for some other reason.

If you have some understanding of how the insurance company turns the data you provide into a quote, it is often possible to find ways of bringing your costs down.  While some responses cannot be altered – your age, for example – making small changes to other aspects could result in a significantly reduced quote.

As you are filling in your application, think about whether your responses would make you more or less likely to have an accident or make a claim.  Then, consider whether there is anything you could do to lessen this risk.  For example, if you are asked where you tend to park your car, it is probably because cars that are locked in garages are less likely to be stolen or vandalised than those parked on the street.  Moving your regular parking space to somewhere more secure may well reduce the amount you are asked to pay for cover.

One last note is that all insurance companies have slightly different methods of calculating their quotes, so it is usually worth shopping around before making a decision. 

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When selecting car insurance, it is vital that you avoid spending more than you should be on your policy. There are a number of steps that you can take in order to avoid spending too much on your car insurance. Finding a policy that provides you with everything you need at a reasonable price will prove to be more advantageous in the long run.

In addition to using price comparison websites to find cheaper car insurance, there are other methods that you can use to save money on your car insurance policy. For example, some car insurance providers offer discounts for those who take the time to improve the safety of their vehicle. Adding extra security items and safety devices will reduce the risk of accidents or theft and will help you to save money on your car insurance policy.

Another method of finding cheap car insurance is to not only explore policies on comparison websites, but also to explore comparison websites themselves. There are a wide variety of comparison websites available offering different services, so explore what is available and see what each website has to offer. Comparison websites offer hundreds of insurance providers to compare and will not cover the same ones, so taking the time to explore will enable you to have access to even more insurance providers and will increase your chances of finding an affordable car insurance policy that provides you with sufficient cover.

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One challenge faced by new drivers seeking inexpensive car insurance is known as fronting. Fronting occurs when an individual listed as only a driver on an insurance policy actually uses the vehicle more than the policyholder does. The policyholder is a primary rating factor for the insurance policy. Fronting an insurance policy can be easy to trace. An insurance company can ask to review the V5 of the vehicle being insured. If the name on the front of the document differs from that of the policyholder, the policy is most likely fronted.

Placing additional named drivers on the policy, even if they are not regular drivers, will reduce the cost. Normally you cannot take advantage of the insurance carrier’s no claims discount, but it may affect the policy favourably knowing there is a safe, proven pair of hands occasionally behind the wheel.

For some, getting named driver insurance will be very useful. A husband and wife normally are named on the other’s insurance policies. In most cases, this lowers the price of the insurance, providing neither has prior claims or convictions. The reasoning is that spouses tend to do things together such as going on long trips. Travelling at length with a passenger reduces the likelihood of an accident, due to drivers alternating shifts at the wheel.

Some select insurance companies will allow named drivers to collect a no claims discount while being on the policy. This is usually beneficial, but it might ultimately cost more depending on the claims history of the individuals involved.

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Car insurance can often be expensive, especially if you are a first time driver or someone who has a history of claiming your insurance.  Quotes tend to be based on how likely you are to make a claim, and both these groups are considered high-risk.  However, you can reduce the cost of your insurance by paying a higher excess on your policy or by simply shopping around to find the best price.  There are also several other steps you can take to push down the cost of your premium.

Secure Your Car

If your car does not already have a good car alarm system, fit it with an immobiliser or tracker.  It is also better if you can park your car in a garage, rather than on the street.  Doing this reduces the chance of your car being stolen and thus your need to make a claim.

No Claims Discount

Many insurers reward their drivers for not making any claims.  If you have gone a year without an accident or claim, you may be entitled to a reduction in the cost of your policy.  On top of this, some providers offer fast-track plans in which you are insured for less than a year, but at the end of the term obtain a full year’s no claims discount.  This allows you to save more money in the long term.

Mileage

The more you drive, the more opportunities there are for you to be in an accident.  Therefore, accurately recording your annual mileage may help to bring down your premium.  Reporting that you travel more than you actually do can lead to an overpriced policy.

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Any policy taken with a UK car insurer provides its driver with the minimum cover required by law in any European Union country.  In countries where the legal requirement offers less protection, the driver is insured to the UK standard of third party.  However, this will not protect drivers against fire, theft or damage to their own car.  People who wish to have the same level of cover they enjoy while at home should contact their insurer to check whether this can be provided for and if so, whether there is an additional cost.

Drivers travelling abroad can obtain a green card which offers assurance against car accidents in over 40 countries where the system is recognised, including all of those in the European Union.  Although it provides no cover itself, it is proof that the card holder’s domestic insurance policy covers the minimum legal requirement in the country they are visiting.

Green cards are not essential to travel within the European Union as all EU countries already conform to the law that any insurance policy obtained in the EU must offer the minimum amount of cover in any other EU country.  But drivers will need a green card in Albania, Belarus, Bosnia and Herzegovina, Former Yugoslav Republic of Macedonia, Islamic Republic of Iran, Israel, Moldova, Morocco, Russia, Serbia and Montenegro, Tunisia, Turkey and Ukraine

You can request a green card from your insurance provider; however, they are under no obligation to supply you with one.  While many insurers will comply, you may want to find out about obtaining border insurance when entering the country you plan to visit.

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Getting into an accident that isn’t your fault can be a nightmare, but when you find the other driver is uninsured your nightmare can become worse.  If the driver who was at fault has no insurance then there is no-one to claim off for the damages to your car.  This means you have to claim against your own policy at an added cost to yourself.

When you consider how frustrating this would be for you, it may make you stop and think before driving without a valid insurance policy yourself, not only that, it is against the law to do so.  You may think you are saving some money, especially during times of financial hardship.  However, when you consider that you could find yourself prosecuted and with penalty points on your licence, which in turn means when you do buy an insurance policy your premiums will be higher, you will realise you are not saving yourself anything at all in the long run.

If you do not use your car very often, then a basic third party policy might be all you need, because your limited time on the road reduces the risk of an accident.  If you travel a lot in the car, have a long commute to work or spend most of your leisure time driving then a fully comprehensive package might be more suitable.  This is because you are driving for longer which increases the risk of getting into an accident.

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Failure to buy car insurance while driving your vehicle on public roads is illegal.  You can be fined, receive penalty points on your licence, and some persistent offenders may find themselves with a jail sentence.

Car insurance covers you for damage caused by accidents on the road.  There are several different policies you can take out, third party, third party, fire and theft and fully comprehensive.  Third party insurance is the most basic insurance policy you can buy, and is the legal requirement.  This covers for loss and damage to others if the accident is deemed to be your fault.  However, it does not cover any personal loss to you.

Third party, fire and theft policies cover everything a third party policy will cover with the addition of cover if your car gets stolen or set on fire.  Fully comprehensive cover will cover you for everything a third party, fire and theft policy will, and additionally your personal expenses in damages to your car.  Each fully comprehensive policy differs depending on which insurance company you use, but the basics are still the same.

With a fully comprehensive policy you can expect benefits such as a courtesy car if yours is off the road while repairs are taking place, roadside breakdown repairs and legal costs.  Shopping around for the best deal is recommended, and you must ensure you have the right level of cover to suit your exact needs.

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If you own a classic or vintage vehicle you should always ensure that your car insurance policy is suitable.  Very often, you will save money on insurance premiums by taking out a specially tailored insurance policy for this type of vehicle.  These policies also offer valuable extras, which are unavailable on standard car insurance agreements.

All car insurance providers take a number of factors into account before deciding to offer cover.  These factors include age, occupation and even gender.  Two additional factors, which are particularly relevant to classic car insurance, are expected annual mileage and storage.  In the case of classic cars there is usually a limit to the annual mileage.  This is because such vehicles are used mainly for recreational purposes and for attending special events, such as vintage car rallies.  It is often the case that a special mileage discount can be applied to the insurance premium, which reduces the cost significantly.  In relation to storage, insurance providers offer generous discounts when a vehicle is stored in a garage, which is the norm in the case of classic and vintage vehicles.

Finally, when taking out a classic car insurance policy it is important to ensure that the value of the car is agreed between the policyholder and the insurance provider.  This will avoid any disputes if something does happen to the car and a claim of any kind has to be made.  It is usual for the insurance company to offer a free valuation in these circumstances.

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