The Motor Insurance Database: What you need to know
Most of those in the motor trade will be familiar with the Motor Insurance Database (MID). The database allows police along with the DVLA to take action against any drivers they find to be uninsured in the UK. The database is particularly essential when you consider that the UK has one of the worst records of uninsured drivers throughout western Europe. In fact, it’s estimated that one in twenty cars are being driven without sufficient insurance.
The principle aim of the MID is to cut down the number of people who are driving uninsured, which in turn reduces the cost to the motor trade industry who have to foot the bill in order to compensate any potential victims.
Motor traders can take out commercial motor insurance, which allows them to drive vehicles that don’t belong to them under the road risks element of the policy. Any motor trader who is found to not have sufficient cover in place can be identified by the MID and police using automatic number plate recognition, who are then able to stop the vehicle.
If you are a policyholder, it is your responsibility to add any insured vehicles onto the MID. Nearly all insurers will be able to provide you with a link or a number which will enable you to do just that. It’s a good idea to add the trade plates to the MID in addition to the registration plates. Doing this will protect you from any unnecessary police stops. If a vehicle you’re driving isn’t located on the MID, the police have the power to impound it without any notice. This could negatively impact your business, from having to pay expensive impound fees to having difficulty obtaining insurance in the future, especially if you gain motoring convictions.
Depending on your line of work, it’s vital that the motor trade insurance option you choose covers you properly. It might be the case that you have employees who regularly drive their customers’ vehicles. In this case, you will have to make sure you have the right insurance in place, as using their own personal insurance whilst driving for your business is a violation.
To get the right insurance package for your business, make sure you talk to us today about the unique needs of your business. We’re sure to find a competitive insurance solution for your motor trade company.