If your main business is in the motor trade or if you buy or sell cars on a casual basis, you need to be aware of the Motor Insurance Database or MID. A central record of all insured vehicles in the UK, you need to update or remove cars from the MID through your motor trade insurance company as and when you buy and sell. We answer all FAQs on the MID – what it is, who must update it, how to access it and which vehicles you need to disclose.
Did you know that each year more than 130 people are killed and 26,000 are left injured by an uninsured or untraced driver? Uninsured and untraced drivers cause almost one in every five road traffic collisions. The Motor Insurers’ Bureau (MIB), which is funded by UK insurance companies, paid out £322 million in compensation in 2019. The Department for Transport figures show that annual collisions caused by uninsured and untraced drivers costs the economy £2billion a year in emergency services, medical care, loss of productivity and property damage.
The Motor Insurers’ Bureau manages the MID, which is short for the Motor Insurance Database. The MID is a central record of all insured vehicles in the UK and is designed to make sure that all vehicles driven on UK roads are appropriately insured at all times. It means that enforcement authorities such as the UK’s police forces can tackle uninsured driving. With a quick check on the MID they can remove vehicles that are uninsured from the road via an Automatic Number Plate Recognition (ANPR) alert.
Each year police forces across the country seize more than 130,000 uninsured vehicles. Uninsured drivers could have their car or van potentially scrapped along with a £300 fixed penalty notice and six licence points.
Supporting the Motor Trade
Insurance companies access the MID to update vehicles on behalf of those people who operate within the UK motor trade. With many vehicles under a single policy, it is imperative that all motor traders keep their records up to date with their motor trade insurance company.
People operating within the motor trade will need to update the MID every time they buy or sell a vehicle. For instance, if a trader purchases a car at auction, it is recommended that they add the vehicle onto the MID as soon as possible (up to 14 days after purchase).
Similarly, if a vehicle is sold and the dealer forgets to remove it from the MID, they are still responsible for it including any fines, parking tickets, speeding violations and any accidents the vehicle could be involved in.
Any vehicles used for social, domestic and pleasure purposes will need to be added to the MID. Trade plates for transporting cars or vans to a delivery destination must also be added. And remember that details entered must be accurate because if the car or van is pulled over by the police and shows the wrong vehicle registration mark, it could be impounded.
Untaxed stock, customer vehicles and SORN (statutory off-road notices) cars or vans shouldn’t normally need to be added to the MID.
A recent report shows that twice as many drivers made SORN applications to the Driver and Vehicle Licensing Agency (DVLA) in order to save money on road tax during the lockdown. SORNs allow drivers to not pay road tax on an unused car, as long as it is stored off the public highway and not driven. Between 23 March and 19 April 2020 there were 544,887 SORN applications - an increase of 115.5 percent. Parking outside a residence is allowed, but only if the vehicle has the proper insurance in place.
The MID makes it easier for enforcement teams to identify and penalise any uninsured and figures show that more than 3,000 road users are issued warnings for this offence every day in the UK.
Remember that there is normally a 14-day ‘grace period’ for motor traders to add vehicles to the MID. Motor traders must maintain a valid motor trade insurance policy for vehicles to be covered.