The way you pay for road tax is changing. Thousands of motorists every month are unknowingly breaking the new road tax laws. They could have their vehicles clamped and towed away by the DVLA.  This renders any insurance potentially useless and leaving them with a problem which means the need impounded car insurance.

Recent figures have shown that the number of cars being clamped and seized by the DVLA has dramatically risen since October. This is when paper tax discs were scrapped and the new vehicle tax system was introduced.

Prior to October of last year, the DVLA were clamping approximately 5,000 cars every month. Recently this number has soared to over 8,000 seizures every month and this is still rising. Fines are also on the rise and with the extra costs of recovering the vehicle it is imperative that drivers have the right tax and insurance on their vehicle.

Nearly everybody knows that paper tax discs are no longer used but a lot of people are not fully aware of exactly what changes were brought into effect last year leading to confusion.

In the past, any remaining months of road tax could be “sold” along with a vehicle. This meant that you could buy a car and that the tax disc purchased by the previous owner would still be valid until its expiry date.

Now, however, vehicle excise duty is cancelled automatically by the DVLA and the new owner must immediately tax their car. This means that many motorists are driving their newly purchased vehicles without any tax in place as they are not fully aware of the new rules and this could lead to the a vehicle being impounded.

Overlooking this part of the new rules is why we are seeing such a sharp rise in DVLA clampings and fines in recent months. Motorists that have had their vehicles clamped or been fined are unable to appeal against any action taken by the DVLA which many people are claiming is unfair practice.

If you find that your vehicle has been taken to an impound you may need an impounded car insurance policy to be able to collect it. Most policies will exclude the release of an impounded car and you may need to purchase specialist policy for impounded car insurance.

The DVLA have said that they have done everything they can to make motorists and motor traders aware of the new rules and that the changes were explained as simply as possible but this has still lead to confusion.

Make sure that you stay on the right side of the law by always ensuring that your vehicle tax is up to date. With the new direct debit option, where you can pay your road tax monthly, 6 monthly or yearly it is much easier to ensure that you are always covered. If you are planning to purchase a used car, be mindful that you will need to tax it immediately and that any tax the previous owner had paid for will no longer be valid.