Welcome for car crush law

Insurers have welcomed government plans to seize and crush uninsured vehicles and fine owners by making owning an uninsured vehicle, not just driving it, a criminal offence.

Mike Quinton, managing director of Zurich’s direct business in the UK said “Industry figures show that uninsured drivers are much more likely to cause a crash and their actions add £30 to everyone else’s premiums, so any efforts to reduce this blight should be welcomed by us all. The new law will make it much easier for the authorities to catch uninsured drivers and keep them off the roads. For too long, uninsured drivers have thought themselves to be above the law and this needs to stop, and stop now.”

Simon Douglas, director of AA Insurance, said: "Britain has one of Europe's worst records for uninsured drivers and they add around £30 to the cost of every honest driver's insurance policy, amounting to around £400m per year. We welcome this latest in a series of moves by the Government to curb this scourge of British motorists.

"The insurance industry is, I believe, well geared up to ensure that insurance renewals are completed in good time so that customers are not landed with an automatic £100 penalty for failing to insure the vehicle.

"This is, of course, in addition to the penalty for driving without insurance which attracts a fine of up to £5,000 and six to eight penalty points. Police also have the power to confiscate and dispose of uninsured vehicles."

However, Simon Douglas points out that a sympathetic approach needs to be taken where customers may be away from home or in hospital when their existing policy expires.

"Similarly, the industry needs to work with Government to ensure the Motor Insurance Database holds the right information at the right time - so that for example, law-abiding motorists are not wrongly accused of being without insurance especially if they change insurers.

"We look forward to playing our part in the consultation process but would urge the Government to consider penalties that at least equate to the un-paid-for insurance policy to put an end to continuous offenders who don't tax, insure or even register their cars."

Under the new system:

• The DVLA will work in partnership with the insurance industry to identify uninsured vehicles
• Motorists will receive a letter telling them that their vehicle appears to be uninsured and warning them that they will be fined unless they insure it within a set period
• If the keeper fails to insure the vehicle they will be given a £100 fine

If the vehicle remains uninsured - regardless of whether the fine is paid - it could then be seized and destroyed.