Major car insurance law change could save drivers £50 a year

A CAR insurance law change is set to slash the cost of motorists’ annual premiums.

The EU Vnuk motor insurance law is one step closer to being removed and it could reduce the cost of car insurance by an average of £50.

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The controversial rule made motor insurance mandatory for a range of vehicles including ride-on lawnmowers, quad bikes and golf buggies.

The EU law would have required those using such vehicles to have insurance in place, even if only operating them on private land, such as in your back garden.

An EU ruling meant that the UK government was required to implement the law while it was in the EU, and through any Brexit transition period.

But insurers have said the rule would add around £50 a year to car insurance prices for all motorists, as it meant the insurance industry would have to cover more claims.

Critics have branded the rule “unnecessary, unworkable and unfair”.

Now the Government has confirmed that a bill to scrap the law has been passed through Parliament today.

This will go on to receive royal assent, which confirms the change in law.

It’s a victory for motorists who are already enduring sky-rocketing petrol prices.

RAC insurance spokesperson Simon Williams said: “Insisting people take out compulsory insurance for all manner of vehicles used on private land would have been an expensive and complicated process for the insurance industry.

“It could also have led to higher premiums for all drivers. So, for these reasons we feel common sense has won out.”

Transport Secretary Grant Shapps has dubbed the rule as “nonsensical” and said ditching it would “protect the pockets of hard-working British people”.

The Government estimates that scrapping the law will save motorists around £2billion a year.

Vnuk would also have covered motor sports collisions, which could have led to go-karting incidents being treated in the same way as standard road traffic accidents, for example.

But critics have long argued that the Vnuk rules were unnecessary because there are already insurance products available that provide cover for risks on private land.

Dominic Clayden, chief executive of The Motor Insurers’ Bureau, said: “This will save all motorists money and take us back to the common sense approach we have before the Vnuk ruling in 2014.”

Motor insurance will still be needed for any vehicles used on public road or in other public places.

Is motor insurance compulsory?

If you are driving a vehicle in the UK then you must legally have insurance in place to protect you and other road users.

The Road Traffic Act 1988 says that all car must be insured with at least third party cover if they’re used on roads and in public places.

Since 2011 it’s been against the law to have a vehicle without insurance, unless it has been officially declared off road with a Statutory Off Road Notification (SORN).

If you drive without insurance you can get a fixed penalty of £300 and six points on your licence.

The police also have the power to seize and potentially even destroy your vehicle.

You could also face court and maximum fine of £1,000.

We have previously looked at simple tricks that can help cut the cost of car insurance.

Some drivers might be wasting money on additional cover on their policies that they either many not need or didn’t notice are included.

This post first appeared on thesun.co.uk