Insurance Certificate Deregulation Simplifies Life for Motorists
In a little-publicised amendment to legislation at the start of July 2015, motorists are no longer required to be in physical possession of a certificate of insurance for their policy to be legally effective.
The Deregulation Act 2015 is part of a wide-ranging set of government reforms which aim to cut red tape and bureaucratic procedures in many areas of life, including motor insurance.
Previous legislation had already removed the requirement for insurers to send policyholders a hard copy of a certificate of insurance (many customers already opt to receive them electronically). But until now, the insurance was not actually valid until the certificate was received (either electronically or by post) – bad news for motorists who left it late to renew their cover.
From now on, although insurers must still deliver the certificate, cover is deemed to be in place even before the certificate is received.
For the police, the change makes virtually no difference – they no longer rely on a certificate of insurance to check a driver has valid insurance. Checks are run through the Motor Insurance Database (MID), where insurers are required by law to enter details of every insurance policy they issue.
The reforms should also make the car buying and car hire process simpler. Many car retailers and car hire businesses would insist on seeing an insurance certificate before releasing a vehicle. Now, they can be satisfied that a customer’s insurance is effective upon seeing an email or fax from an insurance company to confirm the cover, or even a telephone call.
If you’ve not renewed your car insurance yet, contact Insure Your Motor for a quote.