Car Insurance and the Law – What You Need to Know

New car insurance laws came into force in the UK on Monday 20th June 2011.

If you’re not aware of these new laws and what they could mean for you, read the quick guide below to keep informed about car insurance and the law.

It’s illegal to own an uninsured car unless it has a SORN declaration.

Previously, it was only an offence to actually drive a vehicle with no insurance. The new legislation means you can be prosecuted even if you’re not caught driving without car insurance.

For example, if you have a car parked outside your home with no insurance and no SORN declaration then you can still be charged.

What penalties can be imposed for having no car insurance?

If you’re the registered owner of a vehicle with no insurance you will first of all be sent a warning letter to get car insurance followed by a £100 penalty.

If you decide to pay the penalty rather than buy car insurance, you won’t get away with it. If your car remains uninsured, the vehicle can legally be clamped, taken away and crushed. This could also come with a date in court and a fine of up to £1,000; a high price to pay for trying to avoid buying car insurance.

In addition, your future car insurance quotes will also rise, making it more expensive to be a car owner.

Car insurance statistics

It’s thought there are around 1.4 million vehicles on the roads in Britain without any valid car insurance*. These uninsured drivers are estimated to cost insured drivers an extra £500 million a year in raised car insurance premiums.

There are a range of reasons why people don’t take out car insurance from getting car insurance quotes that are too expensive to forgetting, or just not caring.

Cheap car insurance is preferable to running the risk of getting your car taken away and destroyed as well as a huge fine. If you drive when uninsured and run into someone, you could also face a compensation claim if they receive an injury or damage to their vehicle.

There are two choices when it comes to car insurance; you can knowingly break the law and be looking over your shoulder all the time, or you can do what the vast majority of people do and look for cheap car insurance quotes to ensure you’re legal and protected every time you take to the road.



The Co-operative Insurance provides car insurance quotes in the UK with a range of optional extras and added benefits.