As a motor trader buying and selling a number of vehicles each year, you must have motor trade insurance (it is the individual vehicles that are added to the MID to show against your insurance policy – you don’t add the insurance in its own right to the database!).
With every vehicle that you buy and sell, you need to add or remove its details from the Motor Insurance Database (MID). Failure to add a vehicle means that you may not be insured to drive the vehicle in question; failure to remove a vehicle once it is sold means you could be liable if the vehicle is still shown on the MID in your name.
How do I add or remove vehicles on my policy?
Each insurer will have their own way of asking you to update the MID so you will need to check your policy wording that you were supplied when you bought your insurance on the specific details.
However, if you are an existing road risks client of Bollington Insurance, we can update the MID on your behalf. Simply call us on 01625 854300 and select option 2, and we can talk through the process. By utilising this service, you can ring us when you buy or sell any vehicle and we will do the amends for you. We charge a small fee for this popular service.
Why does this matter?
According to recent studies, uninsured drivers are 9 times more likely to be involved in a collision and 3 times more likely to have been convicted of driving dangerously previously. During the last 12 months, more than 60,000 vehicles have been seized by police, with 40% crushed or disposed of. Not having appropriate insurance where it is legally required is an offence which the police are cracking down on.
Every road vehicle that is not declared SORN must be registered and its insurance details updated on the MID. It is the responsibility of the policyholder to add their vehicles to the database, not the insurer. Make absolutely sure that your vehicles are on the database once the insurance cover has been agreed; it is a straightforward process, but it varies dependent on your insurer, so you may need to consult with your Bollington if you are unsure how to add or remove vehicles from the database. Many insurance companies now suggest that updating the MID online is the preferred method. The police regularly use the data supplied to them by the MID in order to seize vehicles they believe are not adequately insured. This can be done at any time.
The police use the ANPR (Automatic Number Plate Recognition) cameras and the Police National Computer, which is fed by the MID, to monitor which vehicles do not have their insurance details on the MID system. If they have reason to believe any vehicle, commercial or private, is not on the database, then they are able to seize it under Section 165 of the Road Traffic Act.
It may be the case that you have the correct motor trade insurance but have simply not put a new vehicle onto the MID. If you or one of your drivers is stopped because the vehicle in use is not on the database, it can be a major inconvenience. It will take time for the police to establish the insurance status, which can be detrimental to your business, especially if it involves tight deadlines or transporting customers directly.
On stopping you, the police will generally need to contact your insurer there and then. If the insurer cannot confirm that you have adequate insurance – which is often the case if it is outside office hours – it may result in your vehicle being seized. Further checks are also possible, including a general condition inspection, as well as a Road Tax and MOT check.
The sooner you get all of your vehicles on the database, the better. Doing it the same day any insurance is taken out or changes are made is most common and it only takes a few minutes to do so. Furthermore, remember that it is just as important to remove vehicles that you no longer own from the MID as it is to add them.