Costs of owning vehicle biggest expense for British households
The cost of owning a vehicle seems to be ever-increasing and never ending. Owning, running and maintaining a car is one of the biggest expenses faced by most households across Britain.
Aside from the rapidly growing cost of fueling our cars, insurance policies can huge a big chunk out of your income; costing hundreds of pounds a year for most drivers and even thousands for younger drivers or those with a less than perfect driving history.
Most of us are fortunate enough to never be involved in a collision or accident and therefore never actually need to make a claim on their car insurance, however it’s a legal requirement that we all must adequate car insurance cover before taking to the roads.
Driving without car insurance carries serious consequences so it is imperative that you ensure you are covered. If you are caught driving a vehicle and you are not insured to do so, expect to receive hefty penalties. For starters, expect to receive a fixed penalty notice of £300 for driving uninsured. You’ll also receive 6 penalty points on your license meaning that your future car insurance costs could sky rocket.
If those potential punishments aren’t enough to deter you or if you think that the cost of car insurance makes it worth the risk of getting behind the wheel without a policy; think again. As well as receiving a fixed penalty notice and accompanying penalty points, the Police have the power to seize your car on the spot and take it away to their compound – leaving you at the side of the road without transportation and facing further financial ramifications.
Releasing your car from the police compound is a costly exercise. There’s a fee to be paid for releasing the vehicle and a daily storage charge. For most cars, the release fee is £150 and there will be an additional £10 added for every day that your car was locked in the compound. However, before you can even release your car you’ll need to ensure that you have the correct documents and proofs to show the officer at the compound.
It’s important that you take with you proof of your identity showing that you are the registered keeper of the vehicle. You must also take your driver’s license with you. Perhaps most importantly, and likely most costly, you must show that you have taken out an impounded car insurance policy by taking the certificate with you. The certificate of insurance most show that you have taken out a type of insurance for impounded cars, as most car insurance policies will not cover a seized vehicle that is in the compound.
So with all of these costs adding up if you’re caught driving without car insurance, you will agree that the risks far outweigh any perceived savings from choosing not to take out a policy.
However, there are steps you can take to reduce the cost of impounded car insurance should you ever find yourself in a position where you need to take out insurance for a seized car. By making adjustments to your future driving habits, it’s easy to see a reduction in the price of your seized car insurance.
Speak to a specialist impounded car insurance broker
If you were taking out a standard car insurance policy, it’s highly likely that you would shop around to get the best possible price for your car insurance.
The same should be true for impounded car insurance, it’s important that you ensure that you’re not only getting the most suitable cover but also ensure that you’re not being exploited due to the fact that you need your insurance quickly.
Speaking to a broker that specializes in insurance for impounded cars is the ideal way to take out a seized car insurance policy as they will do the shopping around for you and crucially, they know exactly what you require to be covered by your insurance.
Increase the voluntary excess that you’re willing to pay
If you ever come to make a claim on your car insurance policy, there will be a “compulsory excess” to pay. This is a small contribution that you must pay towards the cost of each claim you make.
The majority of insurance providers also offer the option of adding a “voluntary excess” to your policy, meaning that you will pay that amount as well as the amount of your “compulsory excess”.
Increasing the amount of your voluntary excess will reduce the overall premium of your impounded car insurance policy.
Pay your impounded car insurance policy annually rather than by instalments
With car insurance costs rising, finding the cash to pay for your policy annually in one lump sum is not always possible.
However, if you opt to pay your impounded car insurance premium by instalments nearly all providers will charge interest.
If you’re unable to pay for your policy upfront it may be worth considering paying your annual premium by credit card. Assuming that you’re able to take out a credit card that is interest free for 12 months you’ll be able to pay your premium by monthly installments without the insurance provider’s added interest.
