driving without insurance

jamoor · 23 Feb 2006 at 04:14

one of my mates told me its possible to drive with no insurance, you give the bank of england? 100k and you can drive on the roads without car insurance, is this true?

sja360 · 23 Feb 2006 at 04:21

giving a bank £100,000 for driving without insurance? sounds like a load of tosh to me, but i dont use the bank of england so...
EDIT: how come your up soo late

Will Gill · 23 Feb 2006 at 04:23

sounds like some portable sun material

geiger · 23 Feb 2006 at 05:42

Its very roughly true but its more like half a million now and you dont get any interest on it.

Baron G · 23 Feb 2006 at 07:14

You can do that here - post a bond with DMV (Yank DVLC) in lieu of insurance.

Never heard of it back home though.

Bear · 23 Feb 2006 at 07:17

Yes it is true, I posted about this quite a while back although it seems to have been deleted. Its £500,000 held by the courts IIRC and apparently companies with large fleets take advantage of this. Merlin would probably be the one for more info on this.

Vertigo · 23 Feb 2006 at 07:30

You're just effectively insuring yourself, although who picks the exact figure is beyond me.

What happens if you injure someone else and their medical bills run to millions?

merlin · 23 Feb 2006 at 08:40

You need £250,000 minimum, and it's FA to do with the Bank of England.

You talk to people like me, but only when you've actually got the 1/4 mil.

Slime101 · 23 Feb 2006 at 09:22

merlin said:
You need £250,000 minimum, and it's FA to do with the Bank of England.

You talk to people like me, but only when you've actually got the 1/4 mil.

Ok so i havnt got 1/4mil and if i did i wouldnt be giving it to anyone in lieu of insurance....but any chance of explaingin how/why this works?

kitten_caboodle · 23 Feb 2006 at 09:25

I'm really interested to know how this works. I know it's used by some companies but on the side of personal use I'd like to know.

lozza23_uk · 23 Feb 2006 at 09:32

its to do with public liability cover isnt it?
not sure but it has to be a minimum value by law that you can guarentee to pay out in the case that it is needed.

merlin · 23 Feb 2006 at 09:32

Slime101 said:
Ok so i havnt got 1/4mil and if i did i wouldnt be giving it to anyone in lieu of insurance....but any chance of explaingin how/why this works?

Yeah, basically you form what they call a "captive". A captive is your own insurance company. You need pro advice to help to create it, and then you need to get experience insurance claims and underwriting staff to administer it and pay third party claims (or you sub-contract it out to a Broker). All kinds of things are needed - a full directory of motor engineers for a start.

You can issue your own certificates of motor insurance, legally.

Some clients prefer more help and ask an Insurer to "front" the captive for them - the client uses the insurers administration structure, simply plop £250,000 into a joint account (client and the insurer) and they dip into it to pay claims made against you. The Insurer will charge a fee for the use of their services - anything from sort of £50k upwards depending on the work involved.

Nozzer · 23 Feb 2006 at 09:43

Bargain, where do I sign?

merlin · 23 Feb 2006 at 09:47

Nozzer said:
Bargain, where do I sign?

On your cheque book!

kitten_caboodle · 23 Feb 2006 at 10:22

merlin said:
Yeah, basically you form what they call a "captive". A captive is your own insurance company. You need pro advice to help to create it, and then you need to get experience insurance claims and underwriting staff to administer it and pay third party claims (or you sub-contract it out to a Broker). All kinds of things are needed - a full directory of motor engineers for a start.

You can issue your own certificates of motor insurance, legally.

Some clients prefer more help and ask an Insurer to "front" the captive for them - the client uses the insurers administration structure, simply plop £250,000 into a joint account (client and the insurer) and they dip into it to pay claims made against you. The Insurer will charge a fee for the use of their services - anything from sort of £50k upwards depending on the work involved.

I see...thanks very much, very interesting!

F355 · 23 Feb 2006 at 14:46

merlin said:
<snip>

So what happend if you, say, crash into a line of 10 Bugatti Veyrons?

merlin · 23 Feb 2006 at 14:48

F355 said:
So what happend if you, say, crash into a line of 10 Bugatti Veyrons?

You kiss goodbye to your £250,000 pot and then either A) leave the country for Rio or B) call your Bank Manager for a loan.

I'd suggest A) personally. The weather's beautiful.

F355 · 23 Feb 2006 at 14:58

merlin said:
You kiss goodbye to your £250,000 pot and then either A) leave the country for Rio or B) call your Bank Manager for a loan.

I'd suggest A) personally. The weather's beautiful.

Doesn't make it look such good value

merlin · 23 Feb 2006 at 14:59

When you have a fleet of 400 or so vehicles - it's an almost guaranteed saving using a captive.

killsta · 23 Feb 2006 at 15:19

Unless they all crash :eek: