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MoneyExpert.com - AA Insurance warns drivers about legal changes in car insurance - 30/10/2007

A new rule involving car insurance could catch drivers out, claims AA Insurance.

From January 1st 2008 insurance providers must register customers' details on the Motor Insurance Database (MID) within one week rather than two. Therefore if customers do not renew their cover before it expires, they will be driving uninsured.

"Customers can no longer delay renewing their insurance, even by a day. If they do, they risk being stopped by police for driving without insurance," says John Close, insurer relations director at AA Insurance.

He explained that police use automatic number plate recognition technology which cross checks a licence plate against the MID and if is not registered, police will stop the vehicle and may even confiscate it.

According to the Association of British Insurance Brokers' Association, there are around two million uninsured motorists on British roads, costing insured drivers an extra £30 each on their annual premium.

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