News

AA: Play the game

Advert

Time 2:56 am, May 26, 2011

new-sales-relief-from-dealersDEALERS are exempt from the new insurance laws but will need to do ‘things by the book’ says the AA.

The firm’s Ian Crowder exclusively told us that while the new insurance rules do not affect the trader as much as the consumer, dealers need to play the game correctly.

‘These new rules affect the consumer more than the trader,’ said Crowder. ‘However, if dealers are performing in a lax manner by not filling in the paperwork and not taking their responsibilities seriously, they could find themselves getting into trouble.


‘In most cases, dealers who sell new cars are exempt from the new insurance rules. However, it is their responsibility to inform DVLA when they sell a car that there is a change of owner. Crucially it is the dealer’s responsibility to ensure that the person driving the car away from the forecourt is insured.

‘While it would be the fault of the person driving the vehicle away and is they will get reprimanded, the dealer could arguably be prosecuted for aiding and abetting.

‘This has been the situation for a number of years, the new laws will firm up the system by putting a greater emphasis on making sure garages and dealers are doing things by the book.’


Crowder also told us that the new insurance laws for used car dealers remains unchanged, as cars with trade plates are exempt as long as they are insured.

‘My advice to new and used car dealers is to make sure that they stick to the rules by informing DVLA of a change of ownership, and that they don’t allow a vehicle to leave their premises unless they are confident it is properly insured.’

COULD MORE BE DONE?

Crowder revealed that although the new insurance rules are a good thing, the AA believes it is a ‘step in the right direction’ and that more could be done.

‘The penalties that are being metered out to uninsured drivers are lamentable – the fine for being caught is up to £5k, but the average fine is under £200 due to means testing. So the law needs to be strengthened in that respect, and needs to reflect the typical premium a driver of a particular age would pay.

‘The new insurance rules will not rectify this, but what it will do is to identify for the first time all of those vehicles that are uninsured, because it is comparing the DVLA’s database with the MIB’s database.’

James Batchelor's avatar

James – or Batch as he’s known – started at Car Dealer in 2010, first as the work experience boy, eventually becoming editor in 2013. He worked for Auto Express as editor-at-large and was the face of Carbuyer’s YouTube reviews. In 2020, he went freelance and now writes for a number of national titles and contributes regularly to Car Dealer. In October 2021 he became Car Dealer's associate editor.



More stories...

Auto Trader Advert
Server 108