Motorists in the United Kingdom are paying a staggering 500 pounds each year to cover the cost of damages caused by uninsured drivers and these losses are inevitably passed on to the premiums of insured drivers who end up paying a lot more for car cover. The MID database was set up to discourage drivers from taking their vehicles out on the road without the proper insurance cover; it is mandatory for all insured vehicle owners to register their car on this database.
The rules for registration differ depending on the type of policy that you hold; for instance the procedure for registering a vehicle if you own trade cover will be different from if you were to own a private policy. So here is a look at the appropriate steps to get your vehicle in the database.
Who will register the vehicle?
If you own a private car cover; your insurance provider will register your vehicle on the database for you. However, if you have a trade policy, you probably have several vehicles on it which means that you will be responsible for ensuring that the details of all the vehicles find their way into the database. This includes any taxed vehicles that are held in stock and also borrowed cars that you intend to use for ten days or more. You can get in touch with the cover provider for additional details; more often than not, an insurance company will also register the vehicles for trade policy holders.
What information will need to be submitted to get the vehicle on the MID database?
You will need to submit information about the vehicle including the registration mark, the insurance policy number and date on which the insurance was purchased and when the cover ended. If you change the cover provider at renewal, you will need to update this information. On the other hand, if you are staying with the same insurance company; this information will usually be automatically updated. However, it is best to check to ensure that all the important details figure in the database.
If you choose to go with a new insurer, you will need to re-register all your vehicles on the database.
What can be the consequences of not registering your vehicle on the MID database?
You may have to face a number of issues if your vehicles are not registered on the MID database. The first is of course being pulled over by the police. The authorities will usually use their system of Automatic Number Plate Recognition to identify cars that cannot be found on the database. If your vehicle has not been registered, the police may very well seize it and you will need to pay hefty fines to get your impounded vehicles back. Not only will there be financial ramifications when your car is seized but also since it will not be available for business purposes, you may lose out on vital customer accounts and crucial business time.
As you can see, there are several hassles that you will encounter if you do not register all the vehicles under your motor trade insurance policy in the MID database. You also need to understand that because the police have quick access to information about the type of policy that you own; using private cover for business purposes can prove risky. Not only will your vehicle be seized in such a situation but also you may have to pay heavy fines and in a worst case scenario, you business license may be revoked; so, its best top choose a motor trade insurance policy for commercial operations.