Car insurance customers could have vehicles seized

Saturday, 15 January 2011

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Not having motor insurance could lead to drivers having their cars impounded because of new government rules set to be announced this week.

If these plans are approved, every vehicle will be checked on a central database and any uninsured drivers will face a fine, or could even have their cars crushed.

Ministers hope that the new rules could lead to cheaper car insurance for law abiding motorists.

Mike Penning, the road safety minister, said: "We are working closely with the insurance companies to make it mandatory for vehicles to be insured."

The government believes that because of the crackdown, the additional £30 a year that drivers need to pay to cover car insurance accidents could be cut.

At present, uninsured drivers can only be prosecuted if they are caught whilst driving, but if the new laws are enacted that could alter, with drivers being punished for simply possessing a vehicle without adequate insurance.

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