Car insurance, is it compulsary?

[kurtdaley]

Do you have to have your car insured if you are using it on a public highway?

Say for instance I was a very wealthy individual, would I have to buy insurance for my car or could I have say a cash surety in a bank account for insurance purposes.

If so, how would you be able to tax your car come renewal time.

Cheers Kurt

 

[PXW]

It's compulsory - at least to the extent of third party liability.

 

[Spinal]

From the road traffic act:

Section IV states:

143.—(1) Subject to the provisions of this Part of this Act—
(a) a person must not use a motor vehicle on a road unless there is in force in relation to the use of the vehicle by that person such a policy of insurance or such a security in respect of third party risks as complies with the requirements of this Part of this Act, and
(b) a person must not cause or permit any other person to use a motor vehicle on a road unless there is in force in relation to the use of the vehicle by that other person such a policy of insurance or such a security in respect of third party risks as complies with the requirements of this Part of this Act.

So yes, it is compulsory. I believe the penalty for not having it involves towing and a very large fine...

M.

 

[AMG-Al]

Both are correct.

You must have a policy to cover third party cliams, but you do not need insurance for your own vehicle.

Some large fleets use this and term it "self-insurance" I believe.

You don't even need to be that wealthy, you just need to be able to survive a total loss of your vehicle and any costs involved in personal injury/death that may result.

 

[Spinal]

You don't even need to be that wealthy, you just need to be able to survive a total loss of your vehicle and any costs involved in personal injury/death that may result.

From wiki:

Road Traffic Act Only Insurance is not the same as Third Party Only Insurance and is not often sold. It provides the very minimum cover to satisfy the requirements of the Act. For example Road Traffic Act Only Insurance has a limit of £1,000,000 for damage to third party property - third party only insurance typically has a greater limit for third party property damage.

 

[AMG-Al]

Thanks.

I assumed that that type of insurance would be the cover the self-insurers would use, to cover any third party damage/loss. This would allow purchase of RFL as the original post and cover loss to anyone apart from the vehicle owner - which is generally the most expensive part of settlement.

For example - if ABC Ltd self-insure 50% of their fleet, the policy will cover their staff and whoever they hit. The only thing not covered would be the ABC Ltd vehicle.

That's how I understand it, but am always willing to learn...........

 

[whitenemesis]

An acquaintance of mine drives with no insurance policy. He has lodged a letter of surety with Lloyds for £10m. He may drive any car he owns (many!) or has permission to drive. In all the time I've known him he has never been stopped by the Police.

 

[219]

You can self-insure by lodging a substantial sum with Lloyds - councils and similar public bodies such as the Fire Service I work for do this .

Nothing to stop a wealthy individual doing the same .

Insurance companies also have to do this before they can issue policies to clients .

 

[crockers]

An acquaintance of mine drives with no insurance policy. He has lodged a letter of surety with Lloyds for £10m. He may drive any car he owns (many!) or has permission to drive. In all the time I've known him he has never been stopped by the Police.

Wonder how his vehicles appear on MID website?

 

[whitenemesis]

Wonder how his vehicles appear on MID website?

Often wondered the same thing. Must be a record of some kind?

 

[MOCAŠ]

Wonder how his vehicles appear on MID website?

If Lloyd's have accepted the letter of surety then they are effectively underwriting the risk, and on that basis they (or one of their brokers) could issue a certificate of insurance.

I suppose the question here is that if the insurance covers any car owned or driven, how does the MID relate this to a given registration mark. Same issue must apply to any-car policies held by motor traders, I suppose.

 

[Dai rees]

You can self-insure by lodging a substantial sum with Lloyds - councils and similar public bodies such as the Fire Service I work for do this .

Nothing to stop a wealthy individual doing the same .

Insurance companies also have to do this before they can issue policies to clients .

You will find that National Express coaches are insured the same way, or at least they were in the 1980's and early 1990's

 

[Benzowner]

You can self-insure by lodging a substantial sum with Lloyds - councils and similar public bodies such as the Fire Service I work for do this .

Nothing to stop a wealthy individual doing the same .

Insurance companies also have to do this before they can issue policies to clients .

Avon & Somerset Constablurary did this a few years ago, then we had the St Pauls riots, oops slightly under covered, at the time the security was only about £50k

 

[Rory]

You will find that National Express coaches are insured the same way, or at least they were in the 1980's and early 1990's

The GPO (when it was called that) used to do the same.

The bond they had to lodge wasn't that huge an amount of money - a few tens of thousands of pounds.

 

[lil.smartie]

As traders we have a log in to register any car that's expected to be our responsibility for 14 days or more.

Kate

 

[lancebond]

well i was collared for driving without insurance when i was in my early 20's.

6 pts and a £350 fine, and they were being lenient.

so some form of insurance is a legal must, the only loaded people i know all play football and they have a blanket policy to cover them for any vehicle, but they don't pay for that, the club do

 

[ant wales]

Updating MID for self insurers or companies with fleet policies

If Lloyd's have accepted the letter of surety then they are effectively underwriting the risk, and on that basis they (or one of their brokers) could issue a certificate of insurance.

I suppose the question here is that if the insurance covers any car owned or driven, how does the MID relate this to a given registration mark. Same issue must apply to any-car policies held by motor traders, I suppose.

Hi,

Just wanted to clarify it for you. MID has a website for insurance companies, self insurers and fleets - www.midupdate.com. Once you have registered your surety with the Secretary of State, which would be secured at Lloyds of London, you may access this system. Inside it is possible to just add or remove vehicles from the database as required. If you just have a vehicle as a one off, that is ok because the law states that vehicles must be added to MID within 7 days and you would probably have the documentation available on request. The web page is operated by Experian.

Hope this clears up the confusion.

 

[flango]

Wonder how his vehicles appear on MID website?

You get access to register your vehicles on MID if you self insure.

 

[lisa110rry]

The MID is truly the bane of my existence in my working world of running a company. I wish it was just a case of contacting the insuror or the broker and letting them know of sales or purchases, but instead I have to go on the internet to a really, really poor website provided by Zurich, which can only be accessed via IE, not Firefox, then work out/remember how the darn thing works!

Flango has got me thinking now. Our previous insuror provded a log in on midupdate but now I do it through Zurich, I hope they're keeping the midupdate updated!

 

[AnimMerc]

Do you have to have your car insured if you are using it on a public highway?

Say for instance I was a very wealthy individual, would I have to buy insurance for my car or could I have say a cash surety in a bank account for insurance purposes.

If so, how would you be able to tax your car come renewal time.

Cheers Kurt

Exercise your right to travel:

Police stop while exercising my right to travel - Part 2 make viral - YouTube

On the one hand though I would want to protect third parties.