Law update: insurance when your car is not being driven
If your car is sitting on your driveway unused or in a garage undergoing substantial repairs,
you don’t need insurance – Wrong!
Current position – often misunderstood
Thanks to Continuous Insurance Enforcement (CIE) car owners could be looking at a £1,000
fine if they don’t have their vehicle insured, even if it isn’t being driven.
In June 2011, the law on CIE came into force and yet very few drivers are aware of this law
at all, even now four years later. Many car owners only become aware of the law when the
DVLA send them a fixed penalty notice. In fact, since it came into force, the DVLA have
secured £5,000,000 in fines for this offence alone.
The CIE law means that car owners don’t have to be driving to be fined for having no
insurance. It covers all vehicles, including motorbikes and mopeds. The Motor Insurers
Bureau and the DVLA work together to input and cross-reference all of their data with the
Motor Insurance Database. This allows them to find those who do not have insurance but
have not declared their car as a vehicle to which a Statutory Off Road Notification (SORN)
applies.
The first step the DVLA will take is to send a warning letter. The letter will explain the law
fully and advise that unless insurance is obtained or the vehicle is declared SORN, a fine will
be issued. Failure to take either of these two steps will result in an automatic £100 fixed
penalty and the matter will be referred to the Magistrates Court.
A prosecution for this offence can result in a £1,000 fine. The authorities may also seize the
vehicle and dispose of it after 14 days unless further fines are paid to release the car. These
release fees can rise to £430 by the end of the 14 day period. On top of all of this, it is most
likely that the car owner’s insurance premium will rise as a result of the penalty points
received.
Advice from us
It is important to be proactive and undertake the following steps:
1. invest in an insurance policy even if it is the minimum level of cover possible in order
to avoid having cause to be identified by the DVLA and Motor Insurance Bureau
2. if your car is going to be taken off the road altogether then make sure you notify the
DVLA immediately by way of a SORN
3. if you are sent a warning letter make sure you act promptly
It is not a defence to say you weren’t aware of this law, especially as a warning letter will
have already been sent. It is also important to make sure that the DVLA have your up-to-
date address. If they send the warning letter to the wrong address, you could find yourself
with a warrant for your arrest for failing to attend a summons to Court.
If you would like further advice on this area of the law, have received a warning letter, fixed
penalty notice or summons to Court, our team will be able to advise and assist you.
Lucy Winter
Associate
+44 (0)20 8394 6312
Lucy.Winter@russell-cooke.co.uk
This material does not give a full statement of the law. It is intended for guidance only and is not a substitute for professional advice. No
responsibility for loss occasioned as a result of any person acting or refraining from acting can be accepted by Russell-Cooke LLP. ©
Russell-Cooke LLP. December 2015
www.russell-cooke.co.uk
