Can I Insure an Impounded Car That Is Registered to a Company?

Your company’s vehicle has been impounded; now what? Whether it’s a work van, a fleet car, or even a personal-use vehicle still registered under a business name, getting it back isn’t as simple as strolling into the pound and asking nicely.

The rules around impounded vehicles can be strict, and when the car is registered to a company, things get even more complicated. You’ll need the right paperwork, the right insurance, and; most importantly; the right approach to avoid unnecessary costs and delays.

So, can you get impounded car insurance if the vehicle is owned by a company? Yes, but it depends on a few key factors. Let’s go through what you might need to do.

Who Can Retrieve an Impounded Company Car?

Before you even think about insurance, you may need to establish who has the authority to collect the vehicle. Since the car is registered to a company, the pound won’t just release it to anyone.

To collect the vehicle, you’ll need:

• A company director or an authorised representative – If you’re not the director, you’ll need written permission on company letterhead.
• Proof of business ownership – This could be a Companies House registration document or an official letter confirming your role.
• The V5C logbook (or proof of ownership) – If the company leases or finances the vehicle, things could get more complicated.

If you don’t have the authority to collect the car, you’ll need to arrange for someone who does. Otherwise, you could be wasting time (and money on storage fees).

Do You Need Special Insurance for a Company Vehicle?

Yes. Even if your company already has a fleet policy or commercial vehicle insurance, it might not cover the release of an impounded car.

To get the vehicle back, you must have a policy that meets impound release requirements. This means:

• It must be valid for at least 30 days – No one-day or short-term policies allowed.
• It must include at least third-party cover – This is the legal minimum for driving in the UK.
• It must explicitly state that it covers impounded vehicles – If the policy doesn’t mention this, the pound will likely reject it.

Some business insurance policies include impound cover, but many do not. Always check the fine print before assuming your company’s current policy is enough.

What If the Vehicle Is Leased or Financed?

If your company leases or finances the vehicle, things can get trickier. Since the leasing company technically owns the car, they might have their own requirements for insurance and retrieval.

Here’s what you should do:

• Contact the leasing company immediately – They may need to provide permission or handle the impound release themselves.
• Check the lease agreement – Some agreements prohibit modifications to the insurance, which could limit your options.
• See if the leasing company can arrange insurance – They may already have a policy in place that can be used for release.

If you don’t sort this out quickly, you could be left paying storage fees whilst the leasing company and the pound figure things out.

How to Get Impounded Car Insurance for a Company Vehicle

If the vehicle is owned outright by your business and you may need insurance to release it, here’s how to get the right policy:

1. Find a Specialist Insurer

Most mainstream insurers won’t cover impounded vehicles; especially when they’re registered to a company. Instead, look for insurers that specialise in high-risk or impounded vehicle insurance.

2. Get a Policy That Meets Police Requirements

Before buying, make sure the policy:

• Covers impounded vehicles specifically
• Lasts at least 30 days
• Provides the required level of cover (third-party minimum)

If your policy doesn’t meet these requirements, you’ll be turned away at the pound, wasting even more time and money.

3. Gather All Necessary Documents

To avoid delays, make sure you have:

• Proof of impounded vehicle insurance
• The V5C logbook or proof of company ownership
• A letter of authorisation (if you’re not the company director)
• Your driving licence or another valid ID
• The impound notice given when the car was seized

Missing any of these? You’ll have to come back later; whilst storage fees continue to add up.

What If You Can’t Get Insurance?

If no insurers will cover the vehicle, or if the leasing company won’t allow you to take out impound insurance, you have a few other options:

1. Use a Vehicle Recovery Service

If driving it away isn’t possible, you can hire a recovery truck to legally transport the car instead. This avoids the insurance issue entirely.

2. Let the Leasing or Finance Company Handle It

If the car is leased or financed, the best option might be to let the lease provider deal with the impound release themselves.

3. Sell the Car or Let It Go

If the car isn’t worth the hassle (or the costs outweigh its value), you may decide to let the pound auction or scrap it.

The Finishing Touch:: Get It Sorted Fast

If your company car has been impounded, don’t wait around; storage fees add up daily, and delaying could mean losing the vehicle altogether.

• Make sure the right person collects it – The pound won’t release it to just anyone.
• Check if existing business insurance covers impounds – If not, get a specialist policy.
• If leasing or financing is involved, contact the provider ASAP – They may need to handle the release themselves.
• Act fast – Every extra day means more fees.

Need help finding the right impounded car insurance for a company vehicle? Click the button below for a quote or ring the number below for expert advice. The sooner you act, the less you’ll have to pay.