New policy wording closes seized-car loophole

The Association of British Insurers (ABI) has created model policy wordings that would remove a loophole that allows uninsured drivers to get their vehicles back after they have been seized by the police for not having insurance on their cars. The loophole has allowed those other than the owner of the vehicle to retrieve seized vehicles by using the “driving other cars” provision of their policies which covers them when driving any vehicle as long as the owner has consented.

Up to one in twenty drivers are believed to be driving illegally without insurance in the UK. These uninsured drivers are three times as likely as insured drivers to have been convicted of driving dangerously, six times more likely to be driving a vehicle that is unsafe, and ten times more likely to have a drunk driving conviction on their record. 50,000 vehicles per year are seized from drivers without insurance, and it is estimated that one in five of those vehicles - up to 10,000 of them - have been retrieved using the “driving other cars” loophole.

The new wording issued by the ABI specifically prevents drivers from retrieving impounded cars using the “driving other cars” provision in their policy. Motorists will still be able to use the provision for its original purpose, which is to drive a car other than the one they own occasionally.

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Story link: New policy wording closes seized-car loophole