New UK Driving Laws Insurance

As an FCA-authorised expert broker that has helped arrange over 800,000 policies, WeCovr understands that staying on top of the UK’s evolving driving laws is crucial for every motorist. This guide explores how recent legislative changes directly impact your motor insurance, premiums, and what happens if you're in an accident.

How Recent UK Driving Law Changes Affect Your Car Insurance, Premiums, and Accident Liability Essential Updates for Every Driver

The landscape of UK motoring is constantly shifting. From new technology in our cars to updated rules of the road, these changes aren't just about avoiding fines and penalty points; they have a direct and significant impact on your motor insurance policy. Insurers assess risk based on the law and driver behaviour. When the law changes, so does the risk calculation, which in turn affects your premiums, your liability in an accident, and the very terms of your cover.

This essential guide breaks down the most important recent legal updates and explains exactly what they mean for you as a driver, vehicle owner, or fleet manager.

The Unbreakable Rule: Your Legal Duty to Be Insured

Before we dive into the changes, it's vital to remember the cornerstone of UK driving law: every vehicle on a public road must have at least third-party motor insurance. Driving without valid insurance is a serious offence that can lead to an unlimited fine, 6-8 penalty points, and even a driving ban. The police also have the power to seize, and in some cases, destroy an uninsured vehicle.

Understanding the different levels of cover is the first step to ensuring you are both legally compliant and adequately protected.

For businesses, the obligation extends further. Business car insurance is a legal requirement if you use your personal vehicle for anything more than commuting to a single, permanent place of work. This includes visiting clients, travelling between different sites, or running business-related errands. For companies with two or more vehicles, fleet insurance is an operational necessity, providing cover for all designated vehicles and drivers under a single, manageable motor policy.

Major Law Change 1: The Highway Code's 'Hierarchy of Road Users'

In 2022, the Highway Code was significantly updated to introduce a 'Hierarchy of Road Users'. This principle places the greatest responsibility on those who can cause the most harm in a collision. It's not about giving priority, but about creating a culture of mutual respect and care on the roads.

The Hierarchy Pyramid (from most to least vulnerable):

1. Pedestrians (especially children, older adults, and disabled people)
2. Cyclists
3. Horse Riders
4. Motorcyclists
5. Cars and Taxis
6. Vans and Minibuses
7. Large Passenger Vehicles (Buses) and Heavy Goods Vehicles (HGVs)

How It Affects Your Insurance and Liability

• Shift in Liability: In an accident involving a car and a cyclist, or a van and a pedestrian, insurers and the courts will now start from the position that the driver of the larger, heavier vehicle holds more responsibility. This doesn't mean the driver is automatically 100% at fault, but the burden of proof to show the vulnerable road user acted recklessly or negligently is now much higher.
• Impact on Claims and Premiums: An increase in 'fault' claims against motorists in incidents with vulnerable users can lead to higher premiums across the board. For you as an individual, a fault claim means losing some or all of your No-Claims Bonus and facing a much higher renewal price.
• The Importance of Dashcams: This change makes dashcam footage more valuable than ever. In a 'your word against theirs' scenario where a driver disputes a cyclist's account, the hierarchy may lead to a claim being settled in favour of the more vulnerable party. Clear video evidence is the best way to demonstrate you were driving with due care and attention.
• Expected Driver Behaviour: Insurers now expect you to be fully aware of these rules. This includes giving cyclists, motorcyclists, and horse riders more room when overtaking (the guidance is at least 1.5 metres for cyclists at 30mph) and giving way to pedestrians who are waiting to cross at a junction you are turning into. Failure to demonstrate this awareness could be viewed as negligence during a claim investigation, weakening your position significantly.

Real-Life Example: A car is waiting to turn left into a side road. A cyclist is coming up the inside of the car, intending to go straight ahead. Before the hierarchy, liability for a collision could be complex and potentially split. Now, Highway Code Rule H3 is explicit: drivers should not cut across cyclists going straight on. In this situation, the driver's insurer would almost certainly find them at fault, as the onus was on them to check for the more vulnerable road user.

Major Law Change 2: Stricter Rules on Mobile Phone and Tech Use

The law has been tightened to ban virtually all handheld use of a mobile phone or any other interactive communication device while driving.

Previously, the law only explicitly banned "interactive communication" like calling or texting. This created a loophole where drivers could argue they were only changing music or checking a map. That loophole is now closed. It is illegal to hold and use a device for any reason, including:

• Unlocking the device
• Checking the time or notifications
• Changing a music playlist
• Taking a photo or video
• Playing a game
• Programming a sat-nav while moving

The penalty is a £200 fine and 6 penalty points on your licence. For new drivers who have passed their test within the last two years, accumulating 6 points means an automatic revocation (cancellation) of their licence.

The Insurance Consequences

• Declaration is Not Optional: A conviction for using a mobile phone while driving (offence code CU80) must be declared to your insurer when you take out or renew a policy. Failing to declare it is a form of insurance fraud known as 'non-disclosure'. If you then need to make a claim, your insurer could legally refuse to pay out or even void your policy from its start date.
• Severe Premium Increases: A CU80 conviction is one of the biggest red flags for insurers. According to data from the Association of British Insurers (ABI), drivers with this conviction can see their annual premiums increase by 50% or more, often for up to five years. It signals a disregard for safety and a significantly higher risk of being involved in a future accident.
• Invalidated Claims: If you are involved in an accident and police or forensic evidence (such as phone records) proves you were using your phone illegally at the time, your insurer could refuse to pay for your own vehicle's damage, even on a fully comprehensive policy. While they are legally obliged to cover third-party costs under the Road Traffic Act, they have the right to pursue you to recover those costs, which could run into thousands or even tens of thousands of pounds.

Motoring Safety Tip: The only way to legally use a device is 'hands-free'. This means securing it in a cradle before you begin your journey and using voice commands. However, the law is clear that you must always remain in proper control of your vehicle. You can still be stopped and prosecuted for 'driving without due care and attention' or 'careless driving' if the police believe you are visibly distracted, even when using a hands-free system.

Major Law Change 3: The Automated Vehicles Act and the Future of Driving

The UK is preparing for a new era of motoring with the Automated Vehicles Act. This landmark legislation creates a new legal framework for vehicles that can safely drive themselves without human oversight.

It's crucial to understand the government's distinction between Assisted Driving and Automated Driving:

• Assisted Driving: These are the features common in many new cars today, such as adaptive cruise control, lane-keeping assist, and parking assist. With these systems, the driver must remain engaged and is always fully responsible for the vehicle. They are 'hands-on, eyes-on'.
• Automated Driving: This refers to a vehicle operating in a legally defined 'self-driving' mode. When this mode is active, the human is no longer considered the driver. The vehicle is in control, and the human is 'hands-off'.

How Automation Will Revolutionise Motor Insurance UK

• A Fundamental Shift in Liability: For the first time in motoring history, when a car is in its authorised self-driving mode, liability in a crash will shift from the human driver to the corporate entity that certified the system. This will be the "Authorised Self-Driving Entity" (ASDE) – typically the vehicle manufacturer or software developer.
• The New Claims Process: If an accident occurs while the vehicle is self-driving, your motor insurance policy will still be the first port of call. It will pay out to any injured third parties or for property damage to ensure a quick and simple resolution for victims. Your insurer will then recover the costs from the ASDE's insurer, without it affecting your premium or No-Claims Bonus.
• Data as the Ultimate Witness: The vehicle's data recorder will be paramount in any incident. It will record definitively whether the car or the human was in control at the moment of impact. The new law guarantees that insurers will have access to this data to correctly and fairly assign liability.

As an expert broker, WeCovr is at the forefront of this change, working with leading insurers to develop policies that are ready for this new technological landscape. We help clients ensure their vehicle cover accurately reflects the advanced driver-assistance systems (ADAS) their car has, which can already lead to premium discounts.

Other Key Legal and Regulatory Changes to Watch

• Pavement Parking Bans: While a ban has been in force in London for decades, the government is actively considering rolling out a nationwide ban on pavement parking across England. This will force vehicles to park entirely on the road, which in many residential streets could increase the risk of scrapes, wing mirror damage, and side-on collisions.
• Intelligent Speed Assistance (ISA): As per EU rules retained in the UK, all new models of car launched from mid-2022 must have ISA fitted, and it will become mandatory on all new cars sold from mid-2024. This system uses cameras and GPS data to identify the speed limit and can provide audible warnings or even actively reduce engine power to prevent speeding. The ABI predicts that the widespread adoption of ISA could reduce accidents by up to 20%, which should eventually translate into lower insurance premiums for cars fitted with the technology.
• Clean Air Zones (CAZ), Low Emission Zones (LEZ), and ULEZ: An increasing number of UK cities are introducing zones that charge older, more polluting vehicles to enter. While not a driving law in the traditional sense, this regulation directly impacts vehicle choice and usage patterns. Insurers are beginning to factor a vehicle's emissions compliance into their rating, as it can indicate where and how a vehicle is used (e.g., a non-compliant van is less likely to be used for city-centre deliveries).

Understanding Your Policy: No-Claims, Excess, and Add-ons Explained

To navigate the world of car insurance and find the best car insurance provider for your needs, you must understand a few key terms that directly affect the price you pay and the cover you get.

Your No-Claims Bonus (NCB)

Also known as a No-Claims Discount (NCD), this is the single most effective way to reduce your insurance premium.

• How it works: For every consecutive year you hold a policy without making a 'fault' claim (an accident where your insurer has to pay out and can't recover the cost), you earn one year of NCB. This discount grows each year, often reaching a maximum of 60-75% after 5 to 9 years, depending on the insurer.
• Making a claim: If you cause an accident, you will typically lose two years of your NCB at your next renewal, causing a sharp increase in your premium. If the other party was clearly at fault and their insurer covers all costs, your NCB should not be affected. Claims for windscreen repair or damage from uninsured drivers (if you have the relevant cover) often don't affect your NCB either.
• Protecting your NCB: Once you have built up four or more years of NCB, most insurers will offer you the option to protect it for an additional fee. This usually allows you to make one or two fault claims within a set period (e.g., three years) without the discount level itself being reduced. Your base premium may still rise after a claim, but you will keep the large percentage discount.

Understanding Your Policy Excess

The excess is the amount of money you must contribute towards any claim you make for damage to your own vehicle. It's made up of two parts that are added together:

1. Compulsory Excess: A non-negotiable amount set by the insurer. This is often higher for young or inexperienced drivers, or for high-performance and high-value vehicles, reflecting the higher risk.
2. Voluntary Excess: An amount you choose to add on top of the compulsory excess.

Why add a voluntary excess? By agreeing to pay a higher voluntary excess (e.g., £250 or £500), you are telling the insurer that you won't bother them with small, low-value claims. This reduces their administrative costs and risk, so in return, they will offer you a lower annual premium. Always choose a total excess amount that you could comfortably afford to pay if you needed to make a claim.

Common Optional Extras (Add-ons)

You can tailor your motor policy to your specific needs with a range of optional extras.

Proactive Steps to Manage Your Insurance Costs Amidst Law Changes

With laws evolving and the cost of living affecting premiums, being proactive is the key to securing affordable and appropriate vehicle cover.

1. Never Auto-Renew - Always Compare: Loyalty rarely pays in the insurance market. Your renewal quote is an offer, not a final price. Use a trusted, independent, and FCA-authorised broker like WeCovr to compare dozens of policies from a wide range of insurers in minutes. We do the hard work for you at no extra cost, ensuring the cover matches your needs.
2. Increase Your Vehicle's Security: Fitting a Thatcham-approved alarm, immobiliser, or GPS tracking device makes your vehicle less of a target for thieves and can earn you a significant discount from many insurers.
3. Consider a Telematics Policy (Black Box): This isn't just for young drivers anymore. If you are a safe, low-mileage driver who avoids driving at night, a telematics policy that monitors your driving via a small device or mobile app can result in substantially lower premiums based on your actual good driving.
4. Pay Annually If Possible: Paying for your policy in monthly instalments is convenient, but it is a form of credit agreement, and insurers charge interest (APR). If you can afford to, paying for the full year upfront will always be cheaper.
5. Drive Carefully to Build Your NCB: A long, clean driving record is your best asset. Drive defensively, anticipate hazards, and protect that valuable No-Claims Bonus.
6. Bundle Your Policies for Better Value: At WeCovr, we value our clients' loyalty and aim to be their one-stop shop for protection. If you take out a motor or life insurance policy with us, you may be eligible for exclusive discounts on other types of cover you need. Our high customer satisfaction ratings are a testament to our commitment to finding you the best overall value.

Fleet Insurance: A Special Case for Businesses

For business owners and fleet managers, these legal changes carry even greater weight and responsibility.

The Hierarchy of Road Users places a huge emphasis on driver training. It is vital that you can demonstrate that all your drivers understand their increased responsibility towards vulnerable road users. A single driver on your fleet being prosecuted for a mobile phone offence can negatively impact the risk profile and premium for the entire fleet.

Specialist fleet insurance brokers like WeCovr can help you implement comprehensive risk management strategies. This includes arranging driver training programmes, implementing fleet-wide telematics to monitor driving standards, and establishing clear policies on mobile phone use. These measures not only help to control your insurance costs but also fulfill your legal duty of care to your employees and the public.

The rules of the road are changing, and your motor insurance policy must keep pace. Staying informed is the best way to protect yourself, your licence, and your finances in this evolving motoring world.

Ready to check your policy is up-to-date and get the best price? Get a fast, free, and competitive motor insurance quote from the experts at WeCovr today. Compare car, van, motorcycle, and fleet options in minutes and drive with confidence.