Foreign drivers use loophole to pay only £100 for insurance

12 April 2012

Thousands of foreign drivers in London are exploiting a legal loophole to avoid soaring car insurance costs as well as congestion and parking charges, it was claimed today.

An investigation reveals that growing numbers of east Europeans are registering and insuring their cars in Romania, where it can cost as little as £100 a year.

These drivers also avoid paying traffic penalties because Transport for London is unable to identify them, according to the report on BBC1's Inside Out London, to be broadcast today.

Car insurance rates in Britain have risen by 40 per cent in the past year, leading to a surge in fraud. One in 10 drivers in the capital has no insurance.

Alex Dettmar, 30, a Romanian furniture delivery driver who lives in Brent Cross, said: "I'm shocked by the price of insurance in the UK, considering it's seven times cheaper to have it insured back home. So what do you do? I registered the car over there and use it on Romania numberplates - it's legal."

He drives on his £100-a-year Romanian insurance and plates, saving more than £700. But it is only legal for six months, so twice a year he takes his car on a day trip to Calais.

"The only reason for the trip is to get the car out of the country. It does not matter for how long," said Mr Dettmar.

Police said thousands of drivers were using loopholes or breaking the law. Pc Ben Redpath, of Kent police said: "It's a sad fact that they will chance it because they can't afford the premiums.

"A lot of people are producing these Polish insurance certificates or Slovakian insurance certificates knowing full well we can't check them, as we don't have contact with Poland or Slovakia in terms of insurance companies. Claims against such foreign policies can be fraught with problems - parking tickets and congestion charge fines are also often ignored."

Police hope cameras at Dover will help. "We have automatic number plate readers at the port so we can check when they have come in."

A TfL spokesman said: "Any vehicle, regardless of where it is registered, which is identified within the congestion charging zone without a valid charge, discount or exemption can be subject to a penalty. TfL pursues penalties from foreign-registered vehicles.

"Recovering unpaid penalties in-curred by vehicles registered in some countries can be problematic.

"TfL does everything possible to ensure a consistent level of enforcement for all road users by using a European Debt Recovery Agency.

The agency has links with foreign vehicle licensing authorities and issues penalty charges."

Inside Out London is on at 7.30pm tonight.

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