Due to the ongoing coronavirus (COVID-19) pandemic, there has been a significant decrease in traffic. Many vehicles that would otherwise be on the road on a daily basis have instead been parked and without use for an extended period.

For many business owners who hold commercial motor insurance policies, having your entire fleet shut down for an extended period of time can feel like a poor return on your investment, given the premiums that you may be paying. Spending your limited budget to cover your commercial vehicles without having them in service may feel like an unfortunate allocation of resources. But while your vehicles may not currently be operating, it’s still necessary that they remain protected by your insurance.

Laid-up Insurance

Laid-up cover exists to provide adjusted rates and protections for policyholders whose vehicles may be kept off the road for extended periods of time. There are many reasons why motor insurance policyholders might consider laid-up insurance. It is often helpful for people who have cars in need of extensive repairs or who are only driven during certain parts of the year or for very specific situations.

In addition, laid-up insurance can also be a valuable form of cover for businesses that utilise commercial vehicles but may not be able to operate them to their ideal capacity. While a global pandemic might not be the most common reason that a company would consider electing this cover, it is certainly a valid one.


Advantages of Laid-up Insurance

This type of insurance may include discounted rates compared to a general motor insurance policy, due to vehicles having less inherent risk while not in use. As such, laid-up insurance offers businesses an opportunity to recover some of their premiums when a vehicle is unable to be operated.

The discounted rates that come with laid-up insurance are made possible by the reduction in the types of protections that your motor policy will need to include. A policy for a vehicle that is not on the road does not need some covers that would be in a general motor insurance policy, such as collision, third party or liability. In addition, many laid-up policies are flexible and can be adjusted to fit both your budget and your business’ potential hazards.

While vehicles are subjected to less potential risk when not in use, even those parked in secure areas or garages can suffer damage or be involved in accidents. Laid-up cover can provide protection from:

  • Fires
  • Flooding
  • Storms
  • Falling trees
  • Theft or theft of parts
  • Vandalism
  • Damage while the vehicle is being transported
  • Damage from a repair or restoration shop

SORNs and Laid-up Insurance

While not being able to operate their vehicles, owners can also save money by registering a Statutory Off Road Notification (SORN) with the Driver and Vehicle Licensing Agency (DVLA). Owners of vehicles with registered SORNs receive refunds for any full months of remaining tax, although the vehicle may not be used again until it is taxed.

If you insure a vehicle under a laid-up policy, you are also required to register it as SORN. But, inversely, a vehicle registered as a SORN is not legally required to be insured. Still, due to the aforementioned constant hazards that exist even for a stationary vehicle, it may be advisable to do so. Click here for more information on registering a vehicle as SORN with the DVLA.

Contact Us

For many businesses around the UK, the COVID-19 pandemic has resulted in regular operations being impeded, or even completely halted. If your company uses commercial vehicles regularly, it’s also likely that the situation has brought on financial hardship. But laid-up insurance can help alleviate some of that damage.

Contact us today to learn more about laid-up insurance.

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Willis Insurance and Risk Management, Willis Wealth Management and Accident Investigation Services are trading names of Willis & Company (Insurance Brokers) Ltd, which is authorised and regulated by the Financial Conduct Authority - 309124. Registration No. NI 32004. Registered in Northern Ireland.

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