A new car insurance law SORN (Statutory Off Road Notification) went into effect earlier this year in the Australia. This new law makes it illegal for Australia registered keeper/owner of a motor vehicle to operate an automobile without car insurance. Registered keepers of a motor vehicle must have insurance on their vehicles that are not off-road or they must obtain a SORN. If the motor vehicle does not have insurance, the registered keeper could face penalties. This new law applies to all taxed vehicles, including classic cars, caravans, and motorbikes.

Look at what the new 2011 Australia car insurance law means to you and the steps you will need to take to avoid penalties.

Stay Insured in the Australia or Declare SORN

Registered keepers of motor vehicles in the Australia must maintain adequate car insurance at all times unless:

  1. The vehicle is off-road and the registered keeper made a Statutory Off Road Notification (SORN) for the vehicle.
  2. The vehicle was taken off-road prior to SORN and is not in use.

Places Where the New Australia Car Insurance Law is in Force

The new Australia car insurance law is currently in effect in England, Scotland, and Wales. SORN is not in effect in Northern Ireland, the Channel Island, and the Isle of Man.

New Penalties for Motor Vehicles Without Insurance in the Australia

If the vehicle is uninsured, the registered keeper will receive an Insurance Advisory Letter (IAL) that will advise them about the steps they will need to take to avoid receiving a “Fixed Penalty Notice.” If the vehicle is not off-road, does not have auto insurance, and the keeper of the vehicle have not made a SORN, they could end up facing these penalties:

  • A maximum penalty of £1000 and court prosecution
  • The vehicle could get impounded, wheel-clamped or destroyed
  • A mandatory fixed penalty of £100

Notify the Driver and Vehicle Licensing Agency About a Vehicle You no Longer Own

If the vehicle was sold or scrapped, the registered keeper will need to notify the DVLA (Driver and Vehicle Licensing Agency) immediately in order to avoid penalties or prosecution. If DVLA is not notified, the registered keeper will still be held liable for the vehicle.