I own an electrical contracting business and have eight Vauxhall Corsa vans insured under a fleet policy. I have been with my broker since I started the business 3 years ago. About five months ago business was booming and so I decided to take on two new freelance electricians. I bought two new Vauxhall Corsa vans for them bringing the total fleet to eight vehicles. I added the two new vehicles to the fleet policy bringing the total to eight.
About two months ago business started to slow and reluctantly I couldn’t afford to keep on my two new freelancers, so I had to reduce their work. This left me stranded with two vehicles that I didn’t really want to get rid of as I could foresee business picking up again.
The vans were being kept in a friend’s lockup, and so I didn’t want to insure them if they weren’t going to be used. I therefore spoke to my insurance broker about taking the vehicles off the fleet policy, to which he explained about a new continuous insurance enforcement law, which has been put into place to attempt to control the rising numbers of uninsured drivers.
I was informed by my broker that not either insuring my vehicles or declaring them as ‘off the road’ or SORN is seen as a criminal offence and could lead to severe consequences. CIE systems are used to check the database of the DVLA, in accordance with the MID (Motor Insurance Database), meaning they are able to see who has uninsured vehicles, and contact them. A series of penalties can be faced by these drivers if they don’t purchase any insurance, and if caught they will face a fixed penalty of 100, as well as a possible fine of up to 1000 and a court prosecution. As well as these personal penalties, the vehicle(s) in question face the possible prospect of being clamped, seized and destroyed.
Following this advice from my broker, I decided to keep both the vans insured, as it would cost me a lot less to do this than face fines and any court prosecution. This advice saved me from unintentionally breaking the law, and therefore the information was very useful and gratefully received.
After this experience I would suggest that all businesses should get in contact with their local insurance broker, as their advice can often save you a lot of money, and their hard work means they will find you the most competitive price. To avoid being confused and making mistakes with insurance, seek a professional broker.
If you are looking for fleet insurance for your family or your business, then you should contact coversure. They are an independent insurance broker with a great reputation and so they can get you the best deal around. van insurance