Car Owners Risk Having Their Car Seized if They Fail to Renew Their Car Insurance Cover on Time
Motorists are to be given greater incentive to ensure their car insurance policy is up-to-date if they don’t want to fall on the wrong side of the law.
Under new legislation, drivers risk being landed with a £100 fine and possibly the loss of their car if they delay renewing their insurance premiums.
“They can no longer rely on the fact their car is off the road, which previously would have been safe from prosecution.”
The tough new laws, due to be implemented in the spring, could result in thousands of drivers being at risk of having their cars clamped and seized in their own driveways.
Ministers backed the law, stating it is being put in place to crackdown on more than a million uninsured drivers.
Motoring groups fear some forgetful but law-abiding families will be caught out and penalised unfairly, possibly causing bad credit debt problems, whilst the car sits unused on their driveway.
The Government and car insurance industry bosses believe the automated £100 fines and tighter restrictions will ensure there is ‘no hiding place’ for uninsured cars.
“Latest figures show that around one in 25 motorists drive uninsured,” said Mr James, of Bad Credit Loans 4 You.
“Despite the current penalty for driving without car insurance resulting in a fine of up to £5000 and six to eight points on your license, people still drive around undeterred.”
According to statistics provided by the Motor Insurer’s Bureau (MIB), of the 35 million vehicles listed on their database, 1.4million are uninsured.
The database is used by the police to help seize uninsured vehicles, with around 180,000 cars seized during 2009 and 164,000 people prosecuted for driving without insurance.
Uninsured drivers cost the UK almost £500 million each year and are believed to add £30 to each person’s car insurance premium.
'Continuous Insurance Enforcement', the new government initiative launched this month and due to come into force in the spring, will mean a car must be insured 365 days a year.
Mr James, of Bad Credit Loans 4 You, confirmed; “Whether the vehicle is on the highway or off-road in a driveway or garage, it will still need to be insured so as not to fall foul of the new rules.”
The legislation also creates a new offence, whereby a car owner can be charged for keeping a vehicle without insurance.
This is in addition to the existing offence of driving a vehicle without insurance, but carries a £100 fixed penalty notice, which can be reduced to £50 if offenders pay early.
It could ultimately lead to the uninsured car being clamped, towed away and crushed, as well as a £1,000 fine being issued if the case goes to court.
“There are worries that many innocent people will suffer with bad credit debt or need a bad credit car loan to pay off charges when they’ve done little wrong,” said Mr James of Bad Credit Loans 4 You.
Motorists who are confused by the enforced changes or simply forget to renew their policy whilst on holiday or in hospital, could find themselves with bad credit problems designed to catch out ‘real rogues’, the AA has warned.
The new system has been designed to be policed continuously from the computer records, ensuring that a car is automatically flagged on the system when the insurance expires and is not immediately renewed.
The DVLA and MIB are expected to issue warning letters to registered keepers of vehicles which have no record of insurance, before fines are imposed or cars seized.
Paul Watters, head of public affairs at the AA, said; “Many otherwise innocent motorists face being unwittingly fined or clamped for doing little more than being forgetful or distracted by the normal business of life.”
“There must be some flexibility, otherwise this will become just another scam, like some cowboy parking ticket or clamping operations. It must not become a money-spinner.”
Mike Penning, Parliamentary under Secretary of State for Transport, insists the warning letter will give uninsured drivers time to get their insurance in place; “If you have been on holiday or in hospital, you won't get an immediate summons.”
Bad Credit Loans 4 You helps out people who fear they have been blacklisted because of past poor credit history which could include CCJ’s and defaults, arrears, late credit card payments or repossession.
Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading.
Bad Credit Loans 4 You is also covered by the Financial Ombudsman.
Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.
For help, phone 0800 011 4503 or visit
/auto-car-loans-for-bad-credit.html
~Ends~
Notes for Editor:
/bad-credit-car-finance.html
Loans 4 You of London Ltd
Innovation Centre
Monks Brook
PO30 5WB
United Kingdom
Tel: 0800 011 4503
Bad Credit Loans 4 You was formed in order to ensure people with bad credit had access to specialist help in securing the bad credit loans they need.
From its UK head office in Monks Brook, Loans 4 You operates across Britain, sourcing bad credit loans for people with bad credit.
Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading.
Bad Credit Loans 4 You is also covered by the Financial Ombudsman.
Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.
