SORN Insurance – What Is It and Do You Need It?

March 20, 2024 at 18:09 PM EDT

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Originally Posted On: https://www.insurancecloud.co.uk/sorn-insurance-what-is-it-and-do-you-need-it/

SORN insurance, sometimes known as laid up insurance, covers vehicles that are declared with a Statutory Off Road Notification. When you declare a Statutory Off Road Notification (SORN) for your vehicle, by law, you no longer need to insure it. But just because you don’t need to insure your vehicle, doesn’t mean you don’t need protection for it. That’s where SORN insurance comes in. Below we’ll cover everything you need to know about SORN insurance, including what it is and whether or not you need it.

What is a SORN?

Declaring your vehicle SORN lets the DVLA know that you’ve taken it off the road. To do this you need to fill in a SORN declaration form (V890) and send it to the DVLA, either online, by post or over the phone. Once you’ve done this, your vehicle will no longer need to be taxed or insured and you’ll receive a refund for any remaining months of tax your vehicle still has.

It is common to declare your vehicle SORN for a few reasons such as if it is:

Unfit to be driven
In storage
Undergoing repair

Whatever your reason for declaring a SORN, driving a SORN vehicle on the road is illegal unless you’re on your way to a pre-booked MOT appointment and have the required car insurance in place. If you’re caught driving a SORN vehicle, you could face a fine of up to £2,500 and have your vehicle seized.

Just because you don’t need insurance by law when a vehicle is declared SORN and stored, it sits without any protection if something should happen. You might still have regular car insurance on your vehicle, but if not, SORN insurance covers the vehicle for the period in which it is stored. Having SORN insurance helps to provide that peace of mind that your usual car insurance does, but often at a cheaper premium.

Do You Need to declare SORN?

Understanding the circumstances that warrant a Statutory Off Road Notification (SORN) is fundamental for vehicle owners to understand this legal requirement. Let’s explore practical advice on when and why to declare SORN.

Unfit to be Driven: If your vehicle is temporarily unfit for road use due to mechanical issues or damage, promptly declaring SORN may be preferable Assess the severity of the issues, and if your vehicle won’t be on the road for a while, SORN is a prudent choice as the vehicle no longer legally requires standard car insurance or to be taxed.

In Storage: For those storing their vehicles, be it for seasonal reasons or an extended period, declaring SORN may offer financial benefits. This underscores the importance of SORN ensuring compliance, potentially leading to cost savings, and eligibility for road tax refunds. Safely store your vehicle and consider declaring SORN to make the most of these advantages.

Undergoing Repair: When your vehicle is undergoing repairs and won’t be in use for an extended duration, declaring SORN can alleviate legal obligations and financial burdens associated with active insurance and road tax.

Legal Implications and Penalties: Understanding the legal implications and potential fines for not declaring SORN is critical advice. To avoid penalties, it’s recommended to adhere to SORN regulations. The below section emphasises the importance of compliance and the financial consequences of neglecting to declare SORN.

SORN Declaration Process

Declaring your vehicle as Statutory Off Road Notification (SORN) is a straightforward yet essential process that ensures compliance with the law and can offer financial benefits during periods of non-use. Here is a step-by-step guide to assist you in smoothly navigating the SORN declaration process:

Obtain the SORN Declaration Form (V890):

Begin by acquiring the SORN declaration form (V890), which is available on the official website of the Driver and Vehicle Licensing Agency (DVLA). Alternatively, you can request a physical copy by calling the DVLA helpline. Ensure you have the necessary details about your vehicle, such as the registration number and the 11-digit reference number from the vehicle log book (V5C).

Complete the Form Accurately:

Carefully fill out the SORN declaration form, providing accurate information about your vehicle. Include the registration number, make, model, and details about why the vehicle is being taken off the road. Pay close attention to the accuracy of the details to prevent any complications in the declaration process.

Choose a Submission Method:

Select the most convenient submission method for you. The DVLA offers multiple options, including online submission through their official website, postal application by sending the completed form to the DVLA, or phone declaration by contacting the DVLA helpline. Choose the method that aligns with your preferences and ensures a hassle-free submission.

Understand Timelines and Effective Dates:

Be mindful of the timelines associated with the SORN declaration process. The SORN becomes effective immediately upon submission, relieving you of the legal obligation to tax or insure the vehicle. Understanding the effective dates is crucial, especially if you are anticipating a refund for any remaining months of road tax.

Compliance and Confirmation:

Once you’ve submitted the SORN declaration, ensure ongoing compliance with the regulations. You should receive a confirmation from the DVLA acknowledging that your vehicle is officially declared off the road. Retain this confirmation for your records, as it serves as evidence of compliance with SORN regulations.

Address Renewals and Updates:

Stay informed about scenarios that may require SORN declaration renewals or updates. If your circumstances change, such as the need to renew the SORN declaration or update information, proactively manage these aspects to maintain continuous compliance with legal obligations.

The Types of SORN Insurance

Our panel of insurers offer two different types of SORN insurance: Fire and Theft, and Fire, Theft and Accidental damage. One provides an additional level of cover over the other which we will detail below.

What is Fire & Theft SORN Insurance?

This type of SORN insurance will cover your vehicle if it’s stolen or damaged by fire. Bear in mind, that if your vehicle is stolen, most insurers require a police crime reference number to process any claim.

What is Fire, Theft & Accidental Damage SORN Insurance?

As well as the cover included in Fire and Theft SORN insurance, this type of SORN insurance will also cover accidental damage. Accidental damage is often defined as “damage caused by impact or collision with another object”. So, if your vehicle is damaged whilst in storage, this type of SORN insurance will have you covered. However, each insurer may have different wording in their policies as to what is and isn’t covered as well as outlining the criteria needed for how your SORN vehicle is to be stored to be covered under their insurance.

Do You Need SORN Insurance?

In deciding whether SORN insurance is necessary, several factors come into play. When you declare your vehicle as Statutory Off Road Notification (SORN), it relieves you of the legal obligation to tax and insure it. However, the question of needing SORN insurance involves weighing various considerations.

Note: Some insurance policies do include SORN cover, so check with your current insurer. SORN insurance maybe more cost effective, but the reduction in cost can sometimes be out-weighed by the costs of cancellation.

If Your Vehicle is Financed: If your vehicle is financed, it’s likely that your lender will require some form of coverage even during periods of storage. Before declaring SORN, it is advisable to check with your lender to understand their specific insurance requirements. In such cases, obtaining SORN insurance might be essential to meet your lender’s criteria.

If Your Vehicle is Unfinanced: For those with unfinanced vehicles, the decision to obtain SORN insurance depends on your risk tolerance and preferences. While not legally required, SORN insurance offers peace of mind by providing protection during the storage period. This coverage, often at a lower premium than regular insurance, can safeguard your vehicle against fire, theft, and accidental damage.

Considerations for Peace of Mind: If you value the assurance that your vehicle is protected even when off the road, SORN insurance may be a prudent choice. It ensures that your vehicle remains covered during storage, providing financial protection in case of unexpected events.

In essence, the need for SORN insurance depends on your individual circumstances, financial considerations, and risk tolerance. If your vehicle is financed, it’s advisable to explore insurance options that align with your lender’s requirements. For unfinanced vehicles, SORN insurance offers an alternative that provides protection during periods of non-use. Ultimately, the decision rests on your preferences and the level of assurance you seek for your stored vehicle.

Do you need Sorn Insurance for your vehicle? Get multiple quotes and compare rates from different insurers. Click the link to discover and request your Sorn Insurance quotes instantly.

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