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Why insurance becomes complicated with an impounded car
When a car is sitting in a pound and the ownership is due to change, insurance becomes a sensitive area. Pounds usually require the registered keeper to attend in person, and most insurers expect the policyholder to match the official keeper details. Until the transfer is finalised and logged with the DVLA, the new keeper normally cannot insure or collect the vehicle as if it were already theirs. Understanding where those boundaries lie prevents delays, extra storage fees and rejected documents at the pound gate.
The registered keeper controls release
During impoundment, the pound deals only with whoever is listed as the registered keeper on the DVLA record, unless enforcement officers have authorised an exception. Even if money has changed hands privately or a sale has been agreed, the pound cannot treat a buyer as the keeper until the DVLA has been notified. The existing keeper must therefore handle release, provide ID and arrange the insurance that the pound will accept.
If the current keeper refuses to attend, or if there is a dispute about ownership, the release process may be paused until the paperwork is resolved. Pounds follow strict identification rules because releasing a vehicle to the wrong person creates liability and legal risk.
Insuring the car before ownership changes
Most insurers will not issue a standard policy to someone who is not yet the registered keeper or legal owner. Insurance is normally set up either in the name of the current keeper or in the name of someone who has a clear insurable interest. A buyer who does not yet legally own the car usually does not meet that requirement. As a result, insurers tend to decline ordinary cover until the DVLA has recorded the transfer.
For release purposes, the pound may only accept insurance taken out by the registered keeper, or by the person authorised by them to collect the vehicle. If a buyer tries to present a certificate issued in their own name while the transfer is still pending, the pound is likely to reject it.
Short-term impound insurance and who can buy it
Short-term impound-release policies exist for situations where a keeper needs valid cover to drive a seized car away. These policies normally require the insured person to be the registered keeper or, in some cases, a named driver acting with the keeper’s written permission. They do not normally allow a prospective buyer to insure the car before the transfer is complete. The insurer must be satisfied that the insured person has a legitimate connection with the vehicle.
If the keeper is unable to drive, they may authorise someone else to collect the car, but that person still needs appropriate insurance and must present a letter of authority. The release will only take place once the pound verifies the relationship and documents.
If the car is being bought directly from the pound
Occasionally, a buyer agrees to purchase a vehicle that has been seized, intending to take ownership immediately after release. In that case, the original keeper still needs to present ID, settle fees and arrange acceptable insurance for removal. Once the car leaves the pound and the keeper completes the DVLA transfer, the buyer can then arrange their own insurance in the usual way. The pound is not allowed to release a car directly into the buyer’s control unless the keeper has authorised it through proper documentation.
When recovery rather than driving may be required
If the keeper wants someone else to collect the car but insurance cannot be arranged in their name, a transporter or recovery truck is usually the simplest lawful option. Recovery companies carry their own insurance, and pounds often release vehicles to them without a driving policy being shown by the keeper or buyer. This avoids the insurance complications involved in trying to insure a car before the transfer is completed.
Updating insurance once the transfer is complete
After the DVLA records the change of keeper, the new owner can insure the vehicle normally, whether with an annual policy or temporary cover. At this point, the insurer can verify that the customer now has full insurable interest in the car. If a temporary policy was used during release by the previous keeper, it’s sensible to cancel or update it once the new owner has taken full responsibility.
Keeping the process smooth and compliant
The main thing to remember is that insurance during impound release follows the DVLA’s record of who is the keeper. Release, driving and policy arrangements all hinge on that point. Trying to insure a car before the transfer is confirmed usually leads to rejected documents, extra storage fees and delays. By ensuring the correct keeper attends, arranging the right insurance for release and completing the transfer promptly afterwards, the whole process stays straightforward and avoids unnecessary complications.
Impound processes, time limits and costs vary widely across the UK, and authorities can amend their rules at any time. Information on this site is intended as a general overview and should not be relied on as definitive for any specific impound location.