Car impounded? No insurance?

The choice is usually between buying a conventional yearly policy if you intend to keep the car, or getting a short-term one, then either selling the car or making a SORN declaration so you can lay it up until finances improve.

There is also a third possibility. You could sell the car to someone else with a good driving record who could then perhaps get a cheaper policy than you could. You would lose the car but at least you would get something back for it instead of watching it be crushed for scrap or sold at auction by the police. All these methods have both advantages and disadvantages.

Buying a conventional policy

Most people whose cars have been impounded, as a result of the driver being uninsured, didn't insure them because the premiums were simply more than they could afford. Most of these drivers will now have to pay even more for their policies because they will be facing a charge of driving without insurance, or they will already have accepted a penalty from the police, which is likely to be a £300 fine with six penalty points. Money will be even shorter than usual.

You could still use your favourite price comparison site to shop for the cheapest quotation. However you would have to tell the insurance company if you have been given a fixed penalty for driving without insurance, or are facing a court appearance to answer that charge. To fail to do so would constitute fraud which is a criminal matter. Furthermore it is highly likely that, if you present a conventional policy at the pound, the staff will check up with the insurance company to make sure that you have declared the situation accurately.

Unfortunately once the insurer is made aware of the fact that the car has been impounded and you have had, or are likely to have, a conviction for DVLA Code IN10, using a vehicle whilst uninsured against third party risks, either the premium will increase substantially or cover will be refused completely.

Buying short-term car insurance

1-28 days car insurance policies almost inevitably exclude using them to get a car out of a police pound but it makes no difference; the police will not accept them for that purpose anyway. The absolute minimum they will accept are standard policies which run for a minimum of 30 days. Fortunately there are insurers who provide these policies, and who are prepared to accept applicants with convictions. For more information see our 30 days impounded car insurance page.

Selling the car to someone else

This will only be accepted by the police if the sale is absolutely genuine so this should be viewed as your last option. There is more information about this on our page about selling an impounded car.

Conclusion

In the end you will need to look at the cost of getting the car out of the pound and compare that to it's value. Which option you take depends upon your own financial situation, and what you intend to do with the car once it is out of the pound.