What are the New Car Insurance Rules?

Motorists are being urged to read up on the new car insurance rules the Government is introducing in a bid to clamp down on uninsured drivers.

One search to compare dozens of UK car insurance companies

The new rules will mean from Monday 27th June, all motorists will have to declare any cars without insurance as being off road, the BBC reported.

Those who do not declare cars with no insurance as being off road will first receive a warning letter urging them to buy car insurance, followed by a penalty of £100 if they continue to ignore the authorities.

Those who do not buy car insurance after this point could see their car seized and destroyed – or face a fine of up to £1,000. 

Those who need to compare car insurance quotes before the enforcement action comes into effect in July should read the following to ensure they get a good deal.

  • While you will want to keep the costs of car insurance to a minimum – those who often opt for the cheapest deals find the cover very poor, and can suffer financially when they seek to make a claim
  • A comprehensive insurance policy will provide things like 24 hour accident recovery, personal accident cover for the driver and partner, medical expenses if involved in an accident, and insurance for personal belongings left in the car when stolen.
    Many insurers will offer a no claims discount, where the policy holder will receive a good discount on their premiums should they go a certain period without claiming.  This is to reward safe drivers.  So if you have a minor accident or need a new car part for whatever reason and the repairs are not likely to cost that much, you may do well to refrain from claiming on your insurance to protect your no claims.
  • Sometimes, the excess that policy holders are required to pay before receiving a claim can be higher on some policies.  This is to prevent motorists from claiming for everything without a second thought.  However, sometimes this scheme is used by insurance providers to lure customers with attractive premiums as a result of the high excess required.
  • A good way to reduce your premiums is to take further driving lessons such as a Pass Plus or an Institute of Advanced Motorists course.  You could find you save a considerable amount.
  • Remove spoilers and other car parts which are meant to adapt your car to be able to drive faster.  Your premiums could rise if you keep them on – and if you fail to tell your insurer you may find you invalidate your insurance so when you need to claim for something pricey, your insurance will not cover it.

Guest post by MoneyExpert