New law could change car insurance

30 June 2006 / by None
A new law making it an offence to own any registered vehicle without cover, used on the roads or otherwise, could lead to a new type of insurance product hitting the market.

Director of insurance at Moneysupermarket.com, Richard Mason, said that the change to the Road Safety Bill made a 'pay as you go' insurance policy more viable - and called for it to be made "widely available" as soon as possible.

"The sooner it becomes widely available the better," he said.

The law has been changed following calls from the Motor Insurers' Bureau (MIB) to clamp down on insurance evasion.

It means that any uninsured car, even if only driven on private land, will land the owner with a fine of up to £500.

Ashton West, chief executive of the MIB, said: "What is important is the requirement to systematically enforce the obligation to insure," according to Auto Industry.

"This cannot be done with the law as it currently stands as you only require insurance whilst using a vehicle."

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