Can I Get Impounded Car Insurance with Penalty Points on My Licence?

So, your car’s been impounded, and to make matters worse, you’ve already got penalty points on your licence. It’s a situation that can make even the calmest driver break out in a cold sweat.

If you’ve ever tried to get standard insurance with penalty points, you’ll know it’s not always straightforward. Some insurers hike up their prices, whilst others flat-out refuse to cover you. But what happens when you throw an impounded vehicle into the mix?

Let’s cut to the chase; yes, you can still get impounded car insurance if you have penalty points, but it’s not as easy (or as cheap) as you’d like. Here’s what you probably need to know.

Do Insurers Check Your Driving Record?

Short answer? Yes.

When you apply for impounded car insurance, insurers will run a check on your driving record. This means they’ll see any penalty points you’ve accumulated, whether for speeding, careless driving, or something else.

And guess what? They don’t like it.

From an insurer’s point of view, penalty points = higher risk. And if your car has already been impounded, that’s another red flag. Some insurers see this combination and decide, "No way, not worth the risk." Others will still cover you, but expect to pay a premium for it.

How Many Penalty Points Is Too Many?

Every insurer has different rules, but here’s a rough idea of what to expect:

• 3 to 6 points? You should still be able to find insurance, but it will cost more.
• 6 to 9 points? Fewer insurers will cover you, and premiums will be noticeably higher.
• 9+ points? Things get tricky. Many mainstream insurers will refuse cover altogether.
• 12 or more points? You could be facing a driving ban, in which case getting your car back from the pound won’t even be an option unless someone else insures it.

If you’ve recently received penalty points for driving without insurance, reckless driving, or drink/drug-related offences, some insurers might refuse you outright. But don’t lose hope; specialist insurers exist for exactly this kind of situation.

How to Get Impounded Car Insurance with Penalty Points

If you’re struggling to find cover, follow these steps to improve your chances:

1. Look for a Specialist Insurer

Mainstream insurance companies aren’t keen on high-risk drivers, so don’t waste your time calling the big names. Instead, look for providers that specialise in impounded car insurance and high-risk drivers.

These companies are more willing to insure drivers with penalty points, although premiums will still be higher than usual.

2. Be Honest About Your Driving Record

Tempted to "forget" about your penalty points when getting a quote? Bad idea.

Insurers will check, and if they find out you’ve provided false information, they can:

• Cancel your policy (even after you’ve paid).
• Refuse to pay out if you ever need to claim.
• Flag you as untrustworthy to other insurers, making it even harder to get insurance in the future.

It’s just not worth the risk.

3. Make Sure the Policy Meets Impound Requirements

Not all car insurance policies will be accepted at the impound. To get your car released, your policy must:

• Cover at least 30 days (no one-day or one-week policies).
• Provide at least third-party cover (the legal minimum).
• Explicitly state that it covers the release of impounded vehicles.

If your policy doesn’t meet these criteria, you’ll be sent away from the pound empty-handed; whilst storage fees keep piling up.

4. Gather Your Paperwork Before You Head to the Pound

Once you’ve secured the right insurance, don’t forget to bring all the necessary documents to the impound lot. You’ll need:

• Proof of insurance – A policy document that meets impound release rules.
• Your driving licence – Or another form of valid photo ID.
• The impound notice – Given to you when your car was seized.
• Proof of ownership (V5C logbook) – If your name isn’t on it, retrieving your car will be much harder.

Forget any one of these, and you’ll have to make another trip; whilst your storage fees keep climbing by the day.

How Much Will It Cost?

Let’s be honest; impounded car insurance isn’t cheap at the best of times. Add penalty points into the equation, and it gets even pricier.

Here’s what you can expect to pay:

• £300–£1,000 for impounded car insurance – Depending on your driving record.
• £192+ release fee – Standard charge for getting your car out of the pound.
• £26 per day in storage fees – The longer you wait, the worse it gets.

The faster you sort this out, the less painful the final bill will be.

What If You Can’t Get Insurance?

If you’ve got too many penalty points and insurers keep saying no, you still have a few options:

1. Use a Vehicle Recovery Service

Instead of trying to drive the car away yourself, you could pay for a recovery truck to legally transport it home.

2. Transfer Ownership

If someone else can get insurance, you might be able to transfer ownership so they can retrieve the car on your behalf.

3. Consider Whether the Car Is Worth It

Harsh but true; if your car isn’t worth much, and the cost of release, insurance, and storage fees adds up to more than the car’s value, you might be better off letting it go.

After seven working days, the pound can auction or scrap your vehicle if it remains unclaimed.

Lessons Learned:: Act Fast and Get the Right Cover

If you have penalty points on your licence and your car has been impounded, finding insurance won’t be easy; but it’s not impossible.

• Look for a specialist insurer – Mainstream providers will likely say no.
• Be honest about your penalty points – Lying will only make things worse.
• Make sure your policy meets impound requirements – Not all insurance will be accepted.
• Act quickly – Every extra day in the pound means more storage fees to pay.

Need fast, reliable impounded car insurance with penalty points? Click the button below for a quote or ring the number below for expert advice. The sooner you act, the less it will cost you!