Vehicle Tax And Insurance: Who Pays?

It is a legal requirement for a vehicle to be both taxed and insured if it is being driven on public roads. Driving a vehicle without tax or insurance can result in fines, penalty points on your license, and even the crushing of your vehicle. To check if a vehicle is taxed, you can use the Government's website for free. To check if a vehicle is insured, you can use the publicly-available Motor Insurance Database (MID).

How to check if a vehicle is taxed

To check if a vehicle is taxed in the UK, you can use the vehicle enquiry service provided by the government. This service is also available in Welsh. To use this service, you will need the vehicle's registration number (number plate). You can also use the 11-digit reference number from the vehicle log book (V5C) to check the current tax rates for your vehicle.

Third-party websites such as DVLA, carcheck.co.uk, and cartaxcheck.co.uk also offer free vehicle tax check services. These services claim to provide additional information about the vehicle such as the MOT history, damages, mileage information, and more. To use these services, you will need the vehicle's registration number.

It is important to note that vehicle tax (also known as road tax or car tax) must be paid for all UK-registered vehicles kept or driven on public roads. The tax costs vary depending on the vehicle's carbon dioxide emissions (CO2), fuel type, and age. Vehicles manufactured before 1 January 1979 or those that are 40 years or older are exempt from vehicle tax.

How to check if a vehicle is insured

Checking if a vehicle is insured is a straightforward process. Here is a step-by-step guide:

Search for Existing Documentation:

Firstly, check for any existing physical documentation. Most drivers keep some form of proof of car insurance in their vehicle, such as an insurance card. Even if it is expired, the vehicle is likely still insured with the same company.

Review Financial Documents:

If you have access to the vehicle owner's financial records, review bank and credit card statements for payments to insurance companies. Emails may also contain correspondence from insurance providers. Contact the insurer to confirm coverage details if you find any relevant information.

Contact Your Insurer:

If you have an existing account with an insurance provider, log in to their online portal or mobile app to access policy documents, proof of coverage, and contact information. Your payment history will also be available as evidence of coverage.

Check with the Department of Motor Vehicles (DMV):

Your local DMV may track insurance coverage information. Contact them to inquire if they keep such records and if this information is accessible to the public. You may need to provide the vehicle's license plate number or Vehicle Identification Number (VIN). There may be a fee for this service.

Check with Major Auto Insurance Companies:

If you have the vehicle's VIN or license plate number, you can contact major auto insurance companies directly to inquire about existing policies. They may be able to confirm if a policy is in place.

Check with Local Police:

In some jurisdictions, local police departments can check if a vehicle is insured. While they may not always release this information to you, it is worth inquiring.

Use the Motor Insurance Database (MID):

The MID is a publicly available database that both insurers and the public can access to confirm a vehicle's insurance status. It does not reveal personal information or policy details, only confirming the car model and whether it is insured. This free service is available on the MID's website.

Remember, it is essential to verify insurance coverage before driving a vehicle. Driving without insurance can result in penalties, fines, and even vehicle impoundment or destruction.

Exemptions to taxing a vehicle

In the UK, certain vehicles are exempt from paying vehicle tax. Here are some detailed examples of exemptions to vehicle tax:

Vehicles Used by Disabled People

If a vehicle is used by a disabled person, it can be exempt from vehicle tax. A disability exemption can be claimed when applying for vehicle tax. However, until the exemption is confirmed, it is important to continue taxing the vehicle as usual.

Disabled Passenger Vehicles

Vehicles used by organisations to specifically provide transport for disabled people are also exempt from vehicle tax.

Historic Vehicles

Vehicles produced before 1st January 1981 or registered before 8th January 1984 are considered historic or classic vehicles and are exempt from vehicle tax. However, these vehicles may still need to be taxed if they are used for hire, reward, or commercial purposes.

Electric Vehicles

Currently, electric cars are exempt from road tax. However, from 1st April 2025, electric vehicles will be liable for road tax.

Steam-Powered Vehicles

Steam-powered vehicles are another category of vehicles that are exempt from vehicle tax.

Agricultural, Horticultural, and Forestry Vehicles

Vehicles used for agriculture, horticulture, and forestry are also exempt. This includes tractors, light agricultural vehicles typically used off-road, and "limited use" vehicles used for short distances between lands occupied by the same person.

It is important to note that while these exemptions exist, most vehicles are required to be taxed and insured if they are driven on public roads. Driving an untaxed or uninsured vehicle can result in fines, penalty points, and other legal consequences.

Exemptions to insuring a vehicle

In the UK, while it is a legal requirement to have your vehicle taxed and insured if you are driving it on public roads, there are a handful of exemptions to this rule. These include:

Vehicles Used by a Disabled Person

If you are a disabled driver, you can claim a disability exemption when you apply for vehicle tax. However, until this is confirmed, you should continue to tax your vehicle as usual.

Disabled Passenger Vehicles

Vehicles used by organisations to provide transport for disabled people are also exempt from vehicle tax.

Vehicles Produced Before 1 January 1981

Vehicles manufactured before this date are exempt from paying tax.

Electric Cars

Electric vehicles do not need to be taxed at the moment. However, from 1 April 2025, electric cars will be liable for road tax.

Steam-Powered Vehicles

These vehicles are exempt from road tax.

Vehicles Used for Agriculture, Horticulture, and Forestry

This exemption includes tractors and light agricultural vehicles typically used off-road. 'Limited use' vehicles, which are used for no more than 1.5 kilometres between lands occupied by the same person, are also exempt.

SORN Vehicles

The only exemption to car insurance is for vehicles registered as off the road (SORN). These vehicles must be parked on private property and cannot be left on a public road.

Penalties for driving an untaxed or uninsured vehicle

Uninsured vehicles

If you are the registered keeper of an uninsured vehicle that has not been declared off the road, you could face the following penalties:

• Your vehicle could be wheel-clamped, impounded or destroyed.
• You could be taken to court and face a maximum fine of £1,000.
• If you are caught driving a vehicle without insurance, you will still have to pay for your insurance on top of any fines received.

Untaxed vehicles

If you are the registered keeper of an untaxed vehicle, you could face the following penalties:

• A late licensing penalty (LLP) letter is issued automatically. LLP is set at £80, reduced to £40 if paid within 33 days. If the penalty is not paid, the case will be referred to a debt collection agency.
• If you pay by Direct Debit and fail to make the payment, the DVLA may stop you from using this payment method in the future.
• If you are caught using an untaxed vehicle on a public road without a SORN, you will be sent an out-of-court settlement (OCS) letter. The fine is set at £30 plus one and a half times the outstanding vehicle tax. If the OCS is not paid, the case may be pursued through the magistrates' court, and the penalty is either £1,000 or five times the amount of tax chargeable, whichever is greater. Your vehicle may be clamped, and additional fees may apply.
• If you are caught using an untaxed vehicle on a public road with a SORN in force, you will be sent an OCS letter with a fine of £30 plus twice the outstanding vehicle tax. If the OCS is not paid, the case may be pursued through the magistrates' court, and the penalty is either £2,500 or five times the amount of tax chargeable, whichever is greater. Your vehicle may be clamped, and additional fees may apply.
• If you are caught keeping an untaxed vehicle, you will be sent an OCS letter with a fine of £30 plus one and a half times the outstanding vehicle tax. If the OCS is not paid, the case may be pursued through the magistrates' court, and the penalty is either £1,000 or five times the amount of tax chargeable, whichever is greater. Your vehicle may be clamped, and additional fees may apply.

Frequently asked questions