The figures reflect a growing crisis on Britain’s roads, as thousands of motorists continue to drive without valid insurance or tax. London saw the highest number of impoundments at over 32,000, followed by the West Midlands with 18,400 and Greater Manchester with 16,700. In some areas, the problem runs deeper than missed paperwork — nearly a quarter of vehicles seized in the West Midlands were later confirmed as stolen.
Since 2021, the DVLA has clamped or impounded more than 600,000 vehicles for tax-related offences, with total fines exceeding £500 million. And while clamping and impounding are not new enforcement tools, the scale of their use — and the financial consequences for drivers — has surged in recent years. Retrieval fees, daily storage charges and the cost of arranging a suitable insurance policy before release mean that many drivers face bills of £400 or more just to get their car back.
Experts believe technology is fuelling the trend. Automatic Number Plate Recognition (ANPR) cameras, used by police and local councils, can instantly flag uninsured or untaxed vehicles. In some cases, drivers return to find their car has been seized while parked legally outside their own homes. Vehicles flagged by ANPR may be towed without warning, even if no driver is present.
Chris Richards, an impounded car insurance specialist at SimplyQuote, said: “With ANPR now widely deployed, there’s nowhere to hide. Your car can be seized even when you’re not behind the wheel. And we’re increasingly hearing from everyday motorists who’ve had their vehicles taken due to an admin error or a missed renewal — not because they’ve deliberately avoided insurance. It’s an expensive and distressing wake-up call.”
In order to reclaim a seized vehicle, drivers are required to produce their driving licence, proof of vehicle ownership and a valid insurance policy that specifically allows for impound release. Many standard policies do not meet this criteria, and drivers often find themselves needing to take out specialist short-term cover. If the correct documentation isn’t provided within seven working days, authorities can dispose of the vehicle, either through scrappage or auction.
Industry data shows a sharp rise in demand for impound insurance. Between August and September 2023, enquiries increased by 33%, with a further 12% rise recorded in October. Perhaps surprisingly, the typical customer is not a high-risk driver but a 35-year-old motorist with no prior convictions — suggesting many impoundments stem from oversight rather than criminal intent.
The costs can quickly escalate. A release fee of around £150 is standard, followed by daily storage fees which often total another £150 or more over the course of a week. Once specialist insurance is factored in, drivers are routinely paying upwards of £400 before they can get their vehicle back on the road.
Motorists are being urged to take basic precautions to avoid falling into this trap. Setting calendar reminders for insurance and tax renewals, using the free askMID database to check if a vehicle is listed as insured, and ensuring that payments haven’t been missed or policies voided are all simple but effective steps. Even a short lapse in cover — sometimes just a single day — can trigger a seizure if the vehicle is detected by an ANPR system.
As the number of impoundments continues to rise, drivers are being reminded that road compliance is no longer just about avoiding points or fines. A single missed policy renewal can now result in significant stress, financial loss and, in some cases, the permanent loss of a vehicle.