Do You Need Motor Insurance for a Car You Dont Drive

As an FCA-authorised motor insurance expert that has helped arrange over 800,000 policies, WeCovr understands the nuances of the UK market. A common question we encounter is whether motor insurance is needed for a car that isn't being driven. The short answer is almost always yes, and this guide clarifies why.

WeCovr clarifies the rules on insuring unused or rarely driven vehicles

It’s a scenario many UK vehicle owners face. Perhaps you have a classic car stored for the winter, a second vehicle that’s rarely used since you started working from home, or a van that’s temporarily off the road. It’s easy to assume that if a vehicle isn’t moving, it doesn’t need insurance.

However, UK law is very clear on this point. Under the principle of Continuous Insurance Enforcement (CIE), it is a legal requirement for any vehicle that is taxed to have at least a basic level of motor insurance in place at all times. This applies whether it's being driven daily, parked on the street, or sitting on your driveway.

The only way to legally avoid insuring a vehicle is to officially declare it as 'off the road' with the DVLA by making a Statutory Off Road Notification (SORN).

In this comprehensive guide, we'll break down everything you need to know about insuring unused vehicles, the SORN process, the different levels of cover available, and how to find the most cost-effective solution for your circumstances.

The Law: Continuous Insurance Enforcement (CIE)

The legal foundation for this rule is the Road Traffic Act 1988, which mandates insurance for any vehicle used on a road or in a public place. The CIE regulations, introduced in 2011, took this a step further by making it an offence to be the registered keeper of a vehicle that is neither insured nor declared SORN.

The DVLA and the Motor Insurers' Bureau (MIB) cross-reference their databases to identify uninsured vehicles automatically. If a vehicle appears on the motor insurance database (MID) without a valid policy, and it doesn't have a SORN, an Insurance Advisory Letter (IAL) is sent to the registered keeper.

Penalties for non-compliance are severe and can include:

• A fixed penalty notice of £100.
• Your vehicle being clamped, seized, and even destroyed.
• A court prosecution with a potential fine of up to £1,000.
• Receiving penalty points on your driving licence.

According to the MIB, over 100,000 vehicles are seized each year for being driven without insurance, highlighting the significant risk of non-compliance. The law exists to protect all road users from the financial devastation that can result from an accident involving an uninsured driver.

The Only Exception: Making a Statutory Off Road Notification (SORN)

If you have a vehicle that you do not intend to use on public roads for an extended period, you can avoid the legal requirement for insurance by obtaining a SORN from the DVLA.

What is a SORN?

A SORN is an official declaration that a vehicle is being taken off the road. Once a SORN is in place:

• You no longer need to pay vehicle tax.
• You can cancel your motor insurance policy without breaking the law.
• The vehicle cannot be used or kept on a public road.

What Constitutes a "Public Road"?

This is a critical point of understanding. The definition of a "public road" is broader than many people realise. It includes:

• Roads and carriageways.
• Pavements and footpaths.
• Public car parks (e.g., at supermarkets or train stations).
• Grassed verges alongside roads.
• Alleyways and bridleways accessible to the public.

A SORN vehicle must be kept entirely on private land, such as in a locked garage, on a private driveway, or on a piece of privately-owned land. Leaving it parked on the street outside your house is illegal and will invalidate the SORN.

How to Make a SORN

You can apply for a SORN online via the gov.uk website, by phone, or by post using the V890 form. You will need the 11-digit number from your vehicle's V5C log book. The SORN is effective immediately if applied for online or by phone.

Comparing an Insured Vehicle vs. a SORN Vehicle

The Hidden Risks of a SORN: Why You Should Still Consider Cover

While making a SORN removes the legal obligation to have motor insurance, it also removes all protection for your vehicle. Your car, van, or motorcycle is still a valuable asset, and it remains vulnerable to risks even when stationary.

Consider these scenarios:

• Theft: A classic car stored in a garage could be targeted by thieves.
• Fire: An electrical fault could start a fire in your garage, destroying the vehicle.
• Vandalism: Even on a private driveway, your vehicle could be maliciously damaged.
• Accidental Damage: A tree branch could fall on it during a storm, or another vehicle could collide with it on your property.

Standard home insurance policies almost never cover vehicles, even if they are stored inside your garage. To protect against these risks, you need a specialist policy known as Laid-Up Insurance or SORN Insurance.

What is Laid-Up Insurance?

Laid-Up insurance is a specific type of policy that provides Fire and Theft cover for a vehicle that is not in use and has a SORN. Some policies may also cover accidental damage. It does not provide any level of road risk cover, so it is not a substitute for standard motor insurance if you intend to drive the vehicle.

This type of cover is particularly important for:

• Owners of classic or high-value vehicles.
• Project cars undergoing restoration.
• Vehicles being stored for a long period.
• Fleet managers with surplus vehicles stored at a depot.

As an expert broker, WeCovr can help you find specialist laid-up policies, ensuring your valuable asset is protected even when it's off the road.

Understanding the Levels of UK Motor Insurance

Whether your vehicle is driven daily or just once a month, if it's taxed, it needs insuring. Choosing the right level of cover is crucial. Here are the three main types of motor insurance in the UK.

1. Third Party Only (TPO)

This is the absolute minimum level of cover required by UK law.

• What it covers: TPO insurance covers liability for injury to other people (third parties) and damage to their property (e.g., their car, wall, or lamppost).
• What it doesn't cover: It provides no cover for damage to your own vehicle or for any injuries you sustain in an accident that was your fault.

While often the cheapest option upfront, it can be a false economy. If you have an accident, you would have to pay for all repairs to your own vehicle out of pocket.

2. Third Party, Fire and Theft (TPFT)

This is a mid-level policy that offers more protection than TPO.

• What it covers: It includes everything covered by a TPO policy, plus it protects your vehicle if it is stolen or damaged by fire.
• What it doesn't cover: It still does not cover accidental damage to your own vehicle if you are at fault in a collision.

TPFT is a popular choice for owners of older, less valuable cars where the cost of a comprehensive policy may outweigh the vehicle's worth.

3. Comprehensive (Fully Comp)

This is the highest level of motor insurance available and offers the most complete protection.

• What it covers: It includes everything from a TPFT policy, and crucially, it also covers accidental damage to your own vehicle, even if the accident was your fault. Many comprehensive policies also include windscreen cover and personal accident benefits as standard.
• Surprising Fact: Comprehensive cover is often cheaper than TPO or TPFT. Insurers' data suggests that drivers who opt for lower levels of cover are statistically a higher risk, which can push up the premiums for those policies. It is always worth comparing quotes for all three levels.

Comparison of UK Motor Insurance Levels

Business and Fleet Insurance Obligations

The rules are just as strict for commercial vehicles. Any car, van, or HGV owned by a business must have at least Third Party Only insurance if it is used on the road. Standard private car insurance is not sufficient for business use.

Business Use is typically categorised into classes:

• Class 1: Covers driving to multiple places of work (e.g., a care worker visiting clients).
• Class 2: Includes the named driver's spouse on the policy for business use.
• Class 3: Covers commercial travelling, such as a salesperson covering a large territory.

For companies with multiple vehicles, Fleet Insurance is the most efficient solution. A single fleet policy can cover all company cars, vans, and trucks, simplifying administration and often reducing overall costs. Fleet managers must ensure that every vehicle on the policy, even a spare one parked at the depot, is covered unless it has a valid SORN and is stored on private company property.

Cost-Saving Strategies for Rarely Driven Vehicles

If you must keep your vehicle insured but don't drive it often, you shouldn't have to pay the same premium as a daily commuter. Here are some effective strategies to lower your motor insurance costs.

1. Declare a Lower Annual Mileage

This is the simplest and most effective tactic. When getting a quote, be realistic about how much you'll use the car. An insurer will offer a significantly lower premium for a vehicle covering 2,000 miles a year compared to one covering 12,000. Be honest, as providing a deliberately false low mileage could invalidate your cover.

2. Consider a Telematics or "Black Box" Policy

Pay-as-you-go or pay-how-you-drive policies are ideal for low-mileage drivers. A small device (the "black box") or a smartphone app monitors your driving habits, mileage, and the times of day you drive. Safe, infrequent drivers are rewarded with much lower premiums.

3. Increase Your Voluntary Excess

The excess is the amount you agree to pay towards any claim. It's made up of a compulsory excess set by the insurer and a voluntary excess you choose. Opting for a higher voluntary excess (e.g., £500 instead of £250) demonstrates to the insurer that you won't make small, frivolous claims, which can reduce your premium. Only choose an amount you could comfortably afford to pay if you needed to claim.

4. Review Your Optional Extras

Do you need every add-on for a car that barely moves? Review your need for extras like:

• Courtesy Car: May not be essential if you have other transport options.
• Breakdown Cover: Still valuable for peace of mind, but check if it's cheaper to buy separately.
• Key Cover: A useful but non-essential add-on.

Stripping back to the core cover you need can save money. However, Legal Expenses Cover is often a worthwhile addition, as it can help you recover uninsured losses (like your excess) if you're in an accident that wasn't your fault.

Understanding Your Policy's Key Features

To make an informed decision, it's vital to understand the terminology used in motor insurance.

No-Claims Bonus (NCB) or No-Claims Discount (NCD)

This is one of the most valuable assets a driver has. For every consecutive year you hold a policy without making a claim, you earn a discount on your premium for the following year.

• How it builds: 1 year might earn a 30% discount, while 5 or more years can lead to discounts of 60-75%.
• The SORN risk: If you SORN your vehicle and cancel your insurance, your NCB can expire. Most insurers will honour it for up to two years, but after that, you may have to start again from zero. This is a significant factor to consider before cancelling a policy.
• Protecting your NCB: For a small additional fee, you can "protect" your bonus. This allows you to make one or two fault claims within a set period without your discount being affected.

Policy Excess

As mentioned, this is your contribution to a claim. For example, if you have a total excess of £400 and you make a claim for £2,000 of damage, you will pay the first £400 and the insurer will pay the remaining £1,600.

Real-Life Scenarios

Let's apply this knowledge to some common situations.

Scenario 1: David's Classic MGB in the Garage David owns a pristine 1972 MGB Roadster, which he stores in his garage from October to April. He thinks it's safe and doesn't want to pay for insurance he's not using.

• Incorrect Action: Cancelling his insurance and doing nothing else. This is illegal as the car is still taxed.
• Correct Action: David should declare a SORN with the DVLA. To protect his £15,000 investment against fire or theft, he should take out a specialist Laid-Up Insurance policy. Before he takes it back on the road in spring, he must tax it, get an MOT, and arrange a standard motor policy.

Scenario 2: Sarah's Commuter Car Sarah recently started working from home full-time and now only uses her Ford Fiesta for the weekly shop and occasional weekend trips. Her annual mileage has dropped from 10,000 to just 2,500.

• Incorrect Action: Letting her policy auto-renew on the old mileage.
• Correct Action: Sarah should contact her insurer (or a broker like WeCovr) to get a new quote based on her much lower mileage. She could save hundreds of pounds. A telematics policy might offer even greater savings. She must maintain at least TPO cover as the car is taxed and kept on her driveway.

Scenario 3: A Business's Spare Van A plumbing company owns a fleet of five vans but keeps one as a spare at their depot for when other vans are being serviced.

• Incorrect Action: Assuming the van doesn't need cover because it's on private property.
• Correct Action: The fleet manager must ensure the spare van is either included on their Fleet Insurance policy or has a valid SORN. If SORN'd, it must be kept off public roads entirely and would not be covered for fire or theft unless the business has adequate property or laid-up insurance.

WeCovr: Your Expert Partner in UK Motor Insurance

Navigating the rules around motor insurance can be complex, especially with specialist situations like unused vehicles, classic cars, or commercial fleets. This is where an expert, independent broker makes all the difference.

WeCovr is a fully FCA-authorised insurance brokerage with a proven track record of helping UK drivers and businesses find the right cover at the right price. Our experienced team can:

• Compare the Market: We compare policies from a wide panel of leading UK insurers to find the most competitive quotes for your specific needs.
• Provide Expert Advice: We can explain the difference between Laid-Up insurance and a low-mileage policy, helping you make the most cost-effective choice without compromising on essential protection.
• Cover All Your Needs: We provide solutions for private cars, vans, motorcycles, business fleets, and specialist vehicles. We can also provide discounts on other products like life insurance when you purchase a motor policy through us.

Our high customer satisfaction ratings reflect our commitment to clear, impartial advice and outstanding service, all at no extra cost to you.

Frequently Asked Questions (FAQs)

1. Can I legally keep a car on my private driveway without insurance? Yes, you can, but only if you have officially declared the vehicle as off the road by making a Statutory Off Road Notification (SORN) with the DVLA. If the vehicle is not SORN'd, it must have at least Third Party Only insurance, regardless of where it is parked.

2. Does my home insurance policy cover my car if it's stolen from my garage? No, it is extremely rare for a standard home and contents insurance policy to cover motor vehicles. A car, even if declared SORN and stored in a locked garage, is considered a separate risk and requires its own specialist insurance, such as a Laid-Up or SORN policy, to be protected against fire, theft, and damage.

3. Will I lose my no-claims bonus (NCB) if I declare my car SORN? You are likely to lose your NCB if you go without a motor insurance policy in your name for more than two years. Some insurers have a shorter one-year grace period. If you plan to SORN your vehicle for an extended time, you may have to start building your NCB from scratch when you return to the road.

4. What is the absolute minimum level of insurance I need for a car on the road? The legal minimum level of motor insurance required in the UK is Third Party Only (TPO). This covers your liability for any injury or damage you cause to other people or their property, but it does not cover any damage to your own vehicle.

5. Is comprehensive insurance always the most expensive option? No, not always. Insurers have found that drivers who opt for the lowest level of cover (Third Party Only) are statistically more likely to be involved in an accident. This can make TPO and TPFT policies more expensive than a comprehensive policy. It is always best to compare quotes for all three levels of cover.

Ready to find the right cover for your vehicle, whether it's driven daily or stored away?

Contact WeCovr today for a free, no-obligation quote. Our FCA-authorised experts will compare the market to find the perfect motor policy for you, ensuring you're legally compliant and fully protected at a competitive price.