During the present economic downturn, many people have looked at their lifestyles to see what they can cut to make life more comfortable. Some of us have even been tempted to forgo insuring our cars. Bad idea. And here’s why:

Police Powers

Some motorists still think that if the police suspect a car is uninsured, that the driver will be issued with a “producer” giving them seven days to produce proof of insurance .

While this is true, a lot of folks don’t know that the Police have the option of confiscating your car UNTIL you produce a valid certificate of insurance, leaving you by the roadside without transport. This applies even if it’s not your car as it is the driver’s responsibility to ensure they are properly insured, so even if you borrow a pool car at work, make double sure it has a proper business car insurance policy or fleet insurance cover.

Understandably, there are a lot of complaints when a car is impounded, especially if the driver was actually insured perfectly legally, as unfortunately, like all systems, mistakes do happen. Occasional computer glitches, memory lapses, poor administration, all sorts of things can and do happen from time to time, which could end up with an insurance company failing to update the MID (Motor Insurance Database), properly with your registration number.

The Motor Insurance Database

The MID or Motor Insurance Database, is a nationwide register of all the insured vehicles on the road in the UK. If you want to, you can check your car is on it at askmid.com

When you insure your car, your insurance company will automatically update the MID with your details.

It is important to note: if your car is not on the MID it is highly likely you will be pulled over by traffic police who may seize your vehicle if they do not believe the car is insured. Remember to keep a copy of your certificate handy in your car as proof, as you may not be able to phone your insurance company if you are pulled over during out of office hours.

Enforcement

So  is insurance required? The first Road Traffic Act was introduced in 1926, due to the high number of people being killed or injured by vehicles. The other part of the problem, besides the injury, was that in more serious cases where there was perhaps a greater need for compensation, for instance if the victim would never work again, the motorist responsible might well not have enough money to pay for the victim’s welfare, and so third party insurance was made compulsory by law to protect the general public.

So this is why the Police enforce the law, which they do very effectively with the modern technology they have at their disposal.

Traffic Police vehicles now have ANPR, or Automatic Number Plate Recognition cameras linked to a computer in the dashboard. As cars move past the vehicle, their registration plates are automatically scanned and the details checked against the MID. If a vehicle registration number is not found on the database, the computer alerts the Traffic Officer, who will then pull you over in order to check you have a certificate of insurance. If you cannot produce it at this point, your vehicle will be impounded on the spot.

Driving other people’s vehicles

Driving other people’s vehicles on your own policy can also raise problems. As you’ve probably guessed, if the car itself is not insured, it will not be on the MID and the Police will pull you over. There are 2 problems with this. Firstly, some insurance policies that offer a DOC (driving other cars) extension, state in their policy wording, that they will not give you cover on someone else’s vehicle, if that vehicle itself is not insured. Secondly, the Police cannot always tell from your policy details whether you have a DOC extension on your policy or not, and if there is any doubt, they will take the vehicle.

NB: It is a common belief that a fully comprehensive insurance policy always includes the DOC extension. This is not so, the DOC extension is not automatic and is available on third party policies with some insurers, so although you may believe you have this extension, read your policy wording thoroughly to make sure. Also, many vehicles such as vans and other commercial vehicles are covered on commercial vehicle insurance policies, and these NEVER have the DOC extension, even when fully comprehensive. It is worth checking your policy upon renewal too, as many insurers are now phasing out the DOC extension, to make it easier to be compliant with the MID and the Road Traffic Act.

Getting your car back

To get your car back will cost a minimum £150 release fee, and it still won’t be given back to you unless you can provide a valid certificate of insurance when you go to pick it up. You will also be prosecuted which will result in: 

• a minimum fine of £200 (up to a max. of £5,000)
• a minimum of 6 penalty points and possible disqualification

And, if you fail to re-claim your vehicle within a set time limit, it will be crushed.

So, if you’re tempted into saving a bit of money by skipping your car insurance, it’s best not to.