Important insurance information for our UK-based readers

Traders must make buyers aware of the new insurance laws

New laws aimed at cracking down on uninsured drivers means that now, more than ever, having specialist insurance from a quality provider such as Staveley Head for traders insurance is vital. It is now a legal requirement to have motor insurance for your vehicle, even if it is not in use, unless you have officially declared it as off-road and have a DVLA Statutory Off Road Notification (SORN).

The Motor Insurance Database (MID) was developed as a response to the growing problem of uninsured drivers which are costing the UK motorist £500 million each year in increased premiums.

The creation of the MID means that insurance policy records are automatically cross-checked with the DVLA database of registered owners to identify vehicles which are uninsured.

The owners of uninsured vehicles will be sent a warning letter and will either have to apply for a SORN notice or insure their motor if they do not want to be prosecuted and face a maximum £5,000 fine.
Motor dealers should make their customers aware of the new rules when they buy a vehicle.

The MID will also have an effect on dealers, auto repair shops, garages and other traders who keep vehicles on their premises for more than 14 days. This includes any vehicle registered, owned or leased to you which must be added to your motor trade insurance. If you fail to do this then you could face a fixed penalty fine for keeping uninsured vehicles.

Automatic number plate recognition technology is being used by the police to catch more than 500 uninsured drivers every day who are not on the MID database, and those who are caught risk having their vehicle seized and scrapped.

However, even if your vehicle is not on the road, you can still fall foul of the new laws and risk prosecution if you do not have insurance or a SORN notification.

You must keep your policy up to date and make your insurance provider aware immediately of any changes which will then be reflected on the MID. The database is updated constantly.

You can check if your vehicle is on the database at www.askMID.com