Impound Insurance - African Affairs

Impound Insurance – The Complete 2025 Guide

Last updated: August 2025

In this guide, we’ll walk you through everything you need to know about impound insurance, from what it is, who needs it, how much it costs, and how to get it, to common mistakes to avoid when dealing with a seized vehicle.

If your vehicle has been seized by the police, you can’t just walk into the pound, show your driving licence, and drive away. You’ll need proof of valid insurance, and in many cases, your standard car insurance won’t be enough. This is where impound insurance comes in a specialist short-term policy designed specifically to help you get your car out of the police impound legally.

What is Impound Insurance?
Why Do Vehicles Get Impounded?
How Impound Insurance Works
Why Standard Car Insurance Often Isn’t Enough
Who Needs Impound Insurance?
How to Get Your Vehicle Released
Cost of Impound Insurance
Factors Affecting Impound Insurance Premiums
How to Choose the Right Policy
Common Mistakes to Avoid
Alternatives to Impound Insurance
Frequently Asked Questions (FAQs)
Where to Buy Impound Insurance
Impound Insurance for Young Drivers
Impound Insurance for Commercial Vehicles
Temporary vs. Annual Cover for Impound Release
How to Avoid Your Car Being Seized in the First Place
What Happens if You Don’t Collect Your Car?
Impound Storage Fees Explained
How to Check If a Car is in an Impound
Impound Insurance and MOT/Tax Rules
How to Make an Impound Insurance Claim
Recommended Impound Insurance Providers
Impound Insurance for Learner Drivers
Retrieving a Car on Behalf of Someone Else
Insurance After Impound Release – What’s Next?
How Seizure Affects Your Future Insurance Premiums
Tips for Saving Money on Impound Insurance
Final Thoughts

What is Impound Insurance?

It is a specialist short-term motor insurance policy designed for one specific purpose: to allow you to legally drive your car away after it’s been seized and held in a police impound.

It’s not a standard annual car insurance policy it’s usually valid for a minimum of 30 days (sometimes longer) and is specifically tailored to meet the legal requirements for vehicle release.

Why Do Vehicles Get Impounded?

Your car might end up in the pound for several reasons:

Driving without valid insurance.
Driving without a valid licence.
Parking in a dangerous or illegal spot.
Abandoning a vehicle.
After an accident, the vehicle is declared unsafe to drive.
Unpaid fines or penalties.

Once seized, the police will give you a vehicle seizure notice explaining why it’s been taken and how to get it back.

How Impound Insurance Works

When your vehicle is impounded, the police require proof of an insurance policy that specifically meets impound release requirements. Impound insurance is designed to:

Provide the necessary cover to satisfy the police.
Gives you legal permission to take the vehicle on the road after collection.
Often provide third-party cover as standard, with optional upgrades to comprehensive cover.

Without this policy, even if you already have a car insurance plan, you might not be able to get your vehicle out.

Why Standard Car Insurance Often Isn’t Enough

Typical car insurance policies generally won’t include cover for retrieving an impounded vehicle.
Even if your annual policy is active, it may:

Not cover impound release.
Require specific clauses that aren’t included in basic cover.
Be invalid if your car was seized for driving without insurance at the time.

This is where specialist impound insurance comes in, providing the cover that standard policies don’t.

Who Needs Impound Insurance?

You’ll need the insurance if:

The police have taken your vehicle into custody
You have no valid standard insurance at the time of seizure.
Your current insurer will not cover impound release.
You are retrieving a car on behalf of someone else and need temporary cover.

How to Get Your Vehicle Released

To release your car, you’ll typically need:

Proof of identity (passport or driving licence).
Proof of ownership (V5C logbook).
A valid MOT certificate (if required).
Proof of impound insurance.
Payment of release fees (often £150–£200 plus daily storage costs).

Once you have all documents and insurance in place, you can go to the pound and collect your vehicle.

Cost of Impound Insurance

The prices vary depending on:

Your age.
Vehicle type.
Location.
Driving history.

On average, 30-day impound cover costs between £150 and £300.

Factors Affecting Impound Insurance Premiums

Age factor – Younger drivers tend to incur greater insurance expenses.
Vehicle type – High-performance cars usually cost more to insure.
Driving history – Past offences can increase premiums.
Location – Higher-risk areas tend to have higher prices.

How to Choose the Right Policy

When picking an the insurance policy, look for:

Minimum 30-day cover to meet police requirements.
The right level of cover (third-party or comprehensive).
A reputable insurer with positive reviews.
No hidden charges or restrictive conditions.

Common Mistakes to Avoid

Waiting too long to get insurance storage fees can add up daily.
Buying a policy that doesn’t meet police release requirements.
Neglecting to ensure the car meets safety and legal standards before collection.

Alternatives to Impound Insurance

In rare cases, your existing insurer may be able to add an impound release endorsement to your current policy. However, most drivers will need a dedicated impound insurance policy.

Frequently Asked Questions (FAQs)

Q: Can I get impound insurance for less than 30 days?
A: In most cases, providers insist on a policy lasting no less than 30 days.

Q: Does impound insurance cover my car after I take it home?
A: Yes, during the policy period, but you may want to switch to a standard annual policy after release.

Q: Can I use impound insurance if I’m banned from driving?
A: No, you must have a valid licence.

Where to Buy Impound Insurance

You can purchase impound insurance from:

Impound Insurance for Young Drivers

If you’re under 25, you’ll likely face higher premiums for impound insurance. Insurers consider young drivers a higher risk due to limited experience and statistical accident rates.

Tips for young drivers:

Shop around and compare quotes from multiple specialist providers.
Avoid high-performance cars, as they significantly increase premiums.
Consider asking an older, experienced driver to help retrieve the car if they are the registered keeper.

Impound Insurance for Commercial Vehicles

It’s not just private cars that can be seized. Vans, taxis, and even lorries can end up in the pound if found uninsured or used in breach of licence conditions.

For commercial vehicle owners:

Ensure the policy you choose covers business use.
Provide all relevant business documents (operator licence, taxi badge, etc.).
Check whether your goods are covered during retrieval.

Temporary vs. Annual Cover for Impound Release

While most people choose 30-day temporary cover to retrieve their vehicle, there are cases where switching straight to an annual policy makes sense especially if your old insurance was cancelled.

Advantages of temporary cover:

Lower upfront cost.
Ideal if you plan to sell or scrap the vehicle.

Advantages of annual cover:

Long-term protection without having to switch policies again.
Can sometimes be cheaper if you need ongoing insurance anyway.

How to Avoid Your Car Being Seized in the First Place

Prevention is better (and cheaper) than cure. Here are ways to avoid an impound altogether:

Always keep your insurance up to date set renewal reminders.
If you change vehicles, update your insurance immediately.
Avoid lending your car to uninsured drivers.
Keep MOT and tax current.

What Happens if You Don’t Collect Your Car?

If you don’t collect your vehicle within the police’s set time limit (usually 14 days), it may be:

Destroyed (scrapped).
Sold at auction to recover costs.

You remain liable for release and storage charges even if you choose not to retrieve the vehicle.

Impound Storage Fees Explained

In addition to the release fee (often £150–£200), you’ll pay daily storage charges, typically £20–£30 per day.
This can quickly add up:

Day 1: £150 release + £20 storage = £170.
Day 7: £150 release + £140 storage = £290.

Acting quickly saves you money.

How to Check If a Car is in an Impound

If your car isn’t where you left it and you think it’s been towed:

Call your local police on 101 (non-emergency).
Provide your registration number.
They’ll confirm if it’s been seized and tell you where it’s being held.

NEXT: Horse Insurance

Impound Insurance and MOT/Tax Rules

Even with valid impound insurance, your car must be roadworthy and have:

A valid MOT (unless it’s exempt).
The vehicle should have up-to-date road tax, or you’ll need to arrange it prior to pickup.

If the vehicle isn’t roadworthy, you may only be allowed to tow it away instead of driving it.

How to Make an Impound Insurance Claim

While impound insurance is mainly for vehicle release, it can also cover accidents or third-party damage during the cover period.

To claim:

Contact your insurer immediately.
Provide details of the incident and any police reports.
Supply photographic evidence if possible.

Recommended Impound Insurance Providers

Some popular UK providers include:

Tempcover – Specialist temporary insurance, including impound release.
Release My Vehicle – Dedicated impound policy provider.
Dayinsure – Short-term insurance suitable for impounded cars.

Impound Insurance for Learner Drivers

If you’re a provisional licence holder, retrieving an impounded car can be trickier.

You’ll still need impound insurance, but it must allow for supervised driving.
Your supervisor must meet legal requirements (age, licence type, experience).
Certain insurers might decline applicants with a provisional license, so it’s worth comparing options.

Retrieving a Car on Behalf of Someone Else

If the vehicle’s registered keeper cannot collect it, another person can retrieve it but only if:

They have written permission from the owner.
They bring the V5C logbook.
They have valid impound insurance in their own name for that vehicle.

Insurance After Impound Release – What’s Next?

Once you’ve driven your car home, don’t forget to arrange ongoing cover.

Switch to a standard annual policy as soon as possible.
Cancel unused days on your impound policy if permitted (though many are non-refundable).
Make sure your new policy is continuous to avoid another seizure.

How Seizure Affects Your Future Insurance Premiums

Having your car impounded for driving uninsured can:

Increase future premiums significantly.
Decrease the number of companies open to offering you insurance.
Require you to take out specialist “non-standard” insurance in some cases.

Tips for Saving Money

Compare multiple providers before buying.
Avoid purchasing at the last minute prices may be higher.
Choose the right cover type (don’t overpay for features you won’t use).
Collect your vehicle as soon as possible to minimise storage fees.

Final Thoughts

It can feel like an unwanted expense, but without it, you may not be able to get your vehicle back and the longer you wait, the more you’ll pay in storage fees.

By acting quickly, choosing the right policy, and making sure your car meets all legal requirements, you can avoid unnecessary costs and stress.