As the manager and owner of an electrical contracting business, I own eight Vauxhall Corsa vans for my employees to use, and I cover the vehicles on a fleet insurance policy. I started the business three years ago, and have employed the same broker for the entire time. After business began to boom five months ago, I thought it was time to employ two freelance electricians, and therefore had to buy two new vans. This brought the total up to eight, and I added the two new vehicles to the fleet insurance policy.
After the boom in business, we unfortunately had a decline in customers about two months ago, meaning I was forced to reduce the work of my two new freelancers. I was then left with the two extra vehicles which aren’t being used. I didn’t want to sell them, however, in case business became popular again.
I didn’t particularly want to insure the two vans, as they were just sitting, unused, in a friend’s lockup, so I spoke to my insurance broker, and asked him to remove them from the policy. He then explained about a new continuous insurance enforcement law. The law is aimed to combat the rising problem of uninsured drivers.
My broker explained to me that if I didn’t insure my vehicles or declare them ‘off the road’ or ‘SORN’, then I would be committing a criminal offence which would have consequences. The government use CIE systems to cross analyse the DVLA database with the Motor Insurance Database (MID), the information from which means they can then contact drivers who haven’t been insuring their vehicles. If insurance is not purchased, the driver will face a fixed fine of 100, and could face anything as serious as a court prosecution and a fine of 1000, as well as the possibility of the vehicle being clamped, seized and destroyed.
Based his advice I decided to keep my vehicles insured, as it could ended up costing me a lot more had I been fined and prosecuted. I am very grateful for the advice my broker gave me as I was unaware of this new law and could have unintentionally broken the law.
After learning the delicacies of the law surrounding insurance, I would suggest all businesses contact their local broker for advice, which could save them a lot of money. Seek advice from a professional to avoid getting caught out by insurance.
If you want to look into fleet insurance for your household or your business, then you should get in touch with Coversure. They are an independent insurance broker with a great reputation and so they can get you the best deal around. van insurance. This article, A Story About Fleet Insurance has free reprint rights.