Since 1930 it has been an offence to drive a vehicle on the roads without insurance. As of the end of June 2011 it will be illegal to own an uninsured vehicle, even if it is not being used.

If you are caught, you will face a fine of up to £100, potentially have your car seized or destroyed an possibly face a criminal prosecution with a fine up to £1,000.

At the end of June 2011 the Motor Insurers’ Bureau will be sending out letters to uninsured drivers in order to remind them of the change in the law. You may be able to avoid a fine and prosecution by insuring your vehicle immediately, make a Statutory Off Road Notification (SORN) to the DVLA, or notify the DVLA if you are no longer the registered keeper. Existing SORNs will not be affected.

Vehicles used only the summer months, such as classic cars, will be subject to the new rules. This may lead to creative new insurance products but consumers will have to wait for these.

The move has been perceived by some as a positive step towards reducing the number of uninsured drivers on the road which in the long run may reduce insurance premiums but there is an opposing view that this is simply further layer of unnecessary bureaucratic red tape.