26 March 2007
Car insurance underwriters who don't update insurance records quickly enough are costing UK drivers thousands in fines and court fees according to statistics from the AA.
Problems occur when drivers insure their vehicle on or close to the renewal deadline, as the Motor Insurance Database (MID) and the police's data for automatic number plate recognition devices is only updated every 14 days.
Consequently, a large number of motorists who paid their insurance at the last minute appear to be dodging their renewals as far as these databases are concerned, making the motorist liable for at least a fine and in extreme circumstances, a court appearance.
Speaking to the Financial Mail, AA spokesman Ian Crowder said although just 50 customers a year were reporting the problem to the organisation, the true figure is likely to be far higher.
He also urged motorists to make sure they knew the name of their insurer as on several occasions the problem had been made worse when drivers couldn't name their insurance provider.
"If you can't remember your insurance company, your car would be clamped and you'd be charged at least £105 as a recovery fee as well as £12 a day storage," Mr Crowder stressed.
The Association of Chief Police Officers told the paper: "The police service is working closely with the MID to get insurance companies, including brokers, to update the system more quickly."
However, a spokesperson for the MID said that the responsibility was "on all of us to renew our car insurance policies in time".
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