Impound Car and Van Insurance: Complete UK guide
Impound motor insurance is specialist insurance cover that permits the release of a vehicle from a police compound.
This guide explains what impound insurance is, how much it costs and how it works with Briefly.
Always check your own policy documents for the exact cover, exclusions and conditions that apply.
Key Takeaways
If you have had your car or van seized and impounded by the police then there are strict requirements you need to meet to have that car released. One requirement is a motor insurance policy that permits the release of a vehicle from a police compound.
Impound insurance will generally provide Third Party Only cover for at least 30 days. The “class of use” (what you can use your car for) is usually ‘Social, Domestic and Pleasure (SDP)’ or ‘SDP and commuting’.
Prices will vary depending on the vehicle and policyholder. In January 2026, half of Briefly’s customers paid £327.85 or less.
The policyholder must typically be the registered keeper of the vehicle with a Full UK driving licence. If the registered keeper is banned from driving or does not have a full UK driving licence then it is possible to purchase an ‘Insured excluded with named driver’ policy which means that the registered keeper is still the policyholder but is not insured to drive the vehicle. Another individual (the named driver on the policy) is permitted to drive the vehicle.
1. Overview of impound insurance
Impound insurance is a standalone motor insurance policy that:
- Is for one specific vehicle, where the policyholder is the registered keeper of the vehicle.
- It generally provides Third Party Only cover for a least 30 days. Policies arranged by Briefly can start at any time of the day and will run to the same time of day, exactly 30 days later.
- Can be cancelled at any time, but typically no refund is given to the policyholder.
Common alternative terms for impound insurance include:
- Compound car insurance
- Compound van insurance
- Seized car insurance
- Seized van insurance
- Impound motor insurance
Can I use my annual insurance policy to release my car from a police compound?
Some annual insurance policies may allow for the release of your vehicle from a police compound.
Check the policy booklet and/or the certificate of insurance or contact your insurer to ask.
If the policy does allow for the release of the insured vehicle, then there is a clause or condition that requires the policy to have been purchased before the vehicle was seized by the police.
This clause exists to avoid individuals purchasing an annual insurance policy after the vehicle has been seized with the sole aim of using the policy to release the vehicle from a police compound. In this scenario the individual could use the policy to release the vehicle from a police compound and then cancel the policy and receive a refund.
Annual policies are subject to ‘cooling off’ period which means:
- Customers can cancel a policy, without reason, within 14 days of the later of the policy start date or receiving policy documents, and
- Customers are entitled to a pro-rata refund of the premium paid which will be based on the time they have been on cover. The provider who set up the policy may also deduct an administration fee from the refund.
Impound insurance, which normally provides cover for 30 days, can be cancelled at any time, however, it is not subject to cooling off period – which generally means a refund is not provided.
2. What does impound insurance cover?
The insurance permits the release of a vehicle from a police compound, but only once per policy.
The cover is typically Third‑party only which means you are covered for:
- Injury to other people
- Damage to other people’s property
But you are not covered for damage you may cause to your own vehicle or property.
Impound insurance usually has one of the following permitted uses:
- Social, Domestic and Pleasure (SDP) use; or sometimes
- SDP and commuting (which is available with impound policies arranged by Briefly)
Impound policies do not typically permit business use (visiting clients; carriage of own goods or delivery of goods). If after release, you will be using the vehicle for any business activity then you will need to purchase additional cover that permits the specific use type you need.
3. What do I need to do to get my vehicle released from a police compound if it has been seized by the police?
If your car has been seized by the police, then you will have been issued with a seizure notice (form 3708) by the police at the point that the car was seized.
Reasons a vehicle can be seized by police include:
- the driver/vehicle was uninsured
- the driver was not driving in accordance with their driving licence; or
- the vehicle wasn’t taxed.
If you are the registered keeper of the vehicle but weren’t driving the vehicle when it was seized, then you will be sent the seizure notice in the post.
You have 7 working days (14 days in some police forces) to gather the required documentation, go to the designated police station (in some police forces you need to go directly to the pound), and have your seizure notice stamped (in most cases). With the stamped seizure notice and supporting documentation, you can then collect your car from the pound.
Note: The process can be slightly different by police force. This article provides links to individual police force processes.
For most police forces you have to:
- Go to the designated police station (or sometimes any police station in the area) with your seizure notice, within 7 working days of the car being seized.
- Note, it must be you, the registered keeper of the vehicle, that goes to the designated police station in person, unless you can provide evidence that you’re out of the country or that there are compelling medical or compassionate circumstances that prevent you from collecting your vehicle.
- If you do nominate another person to collect the vehicle, then that person requires a letter of authority – a letter, signed by you, authorising your nominated person to collect the vehicle on your behalf. The nominated person must also be insured on the vehicle (added as a named driver on the policy).
- Provide documentation:
- Seizure notice
- Driving Licence (if you have a paper licence only you will need to additionally bring your passport).
- Proof of address document (recent utility bill, bank statement).
- Proof of vehicle ownership:
- Car registration logbook (V5C) in your name with the logbook address matching your proof of address document; or
- an unaltered and ‘in date’ new keeper supplement (V5C/2) together with a bill of sale (plus two proofs of address); or
- a verification email from DVLA’s online system confirming a change to the registered keeper.
- Valid MOT certificate (unless the vehicle is not old enough to require an MOT) or proof of pre-booked MOT appointment.
- Valid Insurance that permits the release of a vehicle impounded by a government authority.
- Valid road tax.
- You then need to go to the police pound (which may well be operated by a third party), show your stamped seizure notice plus proof of identity, and potentially all the other documents above.
- Pay release charges – These are paid at the pound. The fees are set by the government and comprise a fixed element that reflects the type and condition of the vehicle and then a daily storage fee.
How much are the release charges?
The release charges vary by weight and damage condition of the vehicle.
The release cost for an upright, substantially undamaged, less than 3.5-tonne vehicle costs £192. There is additionally a daily storage fee of £26 (more for higher-weight vehicles).
You can find full details about the statutory charges you’ll have to pay in The Removal, Storage and Disposal of Motor Vehicles (Amendment) Regulations 2023.
What documentation do I need to have my seized car released from a police compound?
You will need to go to the designated police station (or sometimes any police station in the area) with your seizure notice, within 7 working days of the car being seized and bring the following documents:
- Seizure notice
- Driving Licence (if you have a paper licence only you will need to additionally bring your passport).
- Proof of address document (recent utility bill, bank statement).
- Proof of vehicle ownership:
- Car registration logbook (V5C) in your name with the logbook address matching your proof of address document; or
- an unaltered and ‘in date’ new keeper supplement (V5C/2) together with a bill of sale (plus two proofs of address); or
- a verification email from DVLA’s online system confirming a change to the registered keeper.
- Valid MOT (unless the vehicle is not old enough to require an MOT) or proof of pre-booked MOT appointment.
- Valid Insurance that permits the release of a vehicle impounded by a government authority.
- Valid road tax.
What happens to my vehicle if I don’t release it from the police compound before the deadline?
The seizure notice should specify how long you have to reclaim your vehicle (usually 7 or 14 days).
If you fail to reclaim the vehicle within the specified time period then the vehicle can be legally disposed of (scrapped or sold at auction) and you will not receive any of the sales proceeds.
What if I don’t want to claim my vehicle from a police compound?
This is called ‘disclaiming’ and in most cases you do not need to do anything. Check the website of the police force that holds your vehicle for more details.
The Metropolitan Police, for example, do not require you to do anything if the car has been seized but if it has been impounded then you will need to go to the pound with identity documents and pay a disposal charge (£96 as of March 2026).
4. How do I release my vehicle from a police compound if it has not been ‘seized’ but simply impounded?
The main difference is that you are not issued with a seizure notice and therefore do not need to go to a designated police station to have it signed.
Once the vehicle is ready for collection the registered keeper of the vehicle will be sent a collection notice in the post.
You can then collect the vehicle directly from the pound where it is being held – details will be on the collection notice.
You will need the same documentation as per when the vehicle is seized, except the seizure notice. Similarly, another person can be nominated to collect the vehicle, but they will require a signed letter of authority from the owner/registered keeper.
Please note that there can still be fees to pay.
Under what circumstances would a vehicle be impounded but not seized?
A vehicle can be impounded without seizure if it has been:
- Stolen and recovered
- Involved in a collision;
- Parked illegally;
- Involved in a crime;
- Driven in an anti-social manner;
- Caused an obstruction or danger;
- Abandoned after an incident involving the police;
- Trespassing on land;
- Treated as surrendered property as part of a dispersal order
If my vehicle has been impounded but not seized, say it was stolen and recovered, do I still have to pay fees?
If your vehicle was stolen and recovered and the police arranged recovery to a pound (via their recovery contractor), then:
- Statutory recovery (removal) fees are usually due; and
- Daily storage charges start from when it arrives at the pound.
The fact that you’re the victim of crime does not automatically waive those fees.
With Comprehensive insurance including theft cover
- Your insurer will often:
- Either arrange the recovery themselves and deal with the pound; or
- Ask you to pay the release and storage fees and then reimburse you (check your policy under “recovery after theft” or similar).
- With Third Party Only or no theft cover
- You’ll usually have to pay the recovery/storage charges yourself to get the vehicle out, unless the police force has a specific policy to waive/limit them (varies by force and circumstances).
Do I need motor insurance that allows the release of a vehicle from a police compound (such as impound insurance) if my vehicle has been impounded but not seized?
Yes, you will need to show that you have a valid insurance policy on the vehicle that allows for the release of a vehicle from a police compound, even if your vehicle has been stolen and recovered.
Written by: Al Taylor, Head of Briefly.