Many drivers assume that once their car has been released from the pound, their impound insurance continues like a normal policy. In most cases, it does remain valid for a short period — but not indefinitely. Impounded-car insurance is designed for temporary use, specifically to meet the legal requirements for release and to get the vehicle home safely. After that, you’ll need to arrange standard cover if you intend to keep driving.

Short-term nature of impound policies

Most impounded-car insurance policies last between 7 and 30 days. A few specialist brokers may offer longer terms, but even those are limited. These policies exist purely to provide lawful road cover for collection and short-term use immediately afterwards. They’re not intended as a full replacement for an annual motor policy.

The cover continues exactly as stated on the certificate until the expiry date shown. If you keep driving the car beyond that date without new insurance, it will once again be uninsured — and potentially at risk of being seized again.

Why insurers limit the duration

Insurers treat impounded-vehicle cases as high-risk. Many involve drivers with previous insurance gaps, expired tax, or incomplete ownership paperwork. To control that risk, underwriters only offer limited periods of cover. The expectation is that once the car is home, the driver will regularise everything — tax, MOT, address details — and move onto standard annual insurance.

In short, impound policies are a stop-gap solution, not a long-term plan.

What happens after release

Once your car is back, you can use the remaining days of the policy to:

• drive it home or to a garage for MOT or repairs,
• update vehicle tax and registration details, and
• shop around for a new full-term policy with a mainstream insurer.

If the impound policy lasts 30 days, that’s your window to arrange proper ongoing cover. You don’t need to cancel early; it will simply expire at the end of its term.

Switching to standard insurance

As soon as the vehicle’s paperwork and MOT status are in order, you can buy a standard annual policy. Many insurers prefer to see that the car has been recovered and now meets normal road standards. It’s best to start this process before the impound policy runs out so there’s no gap in cover. Once the new insurance begins, the old one ends automatically without a refund unless the terms allow cancellation (which is uncommon for short-term policies).

If you no longer plan to drive

If the car will stay off-road after release, you can make a Statutory Off Road Notification (SORN) to the DVLA and let the temporary policy expire naturally. This avoids paying for unnecessary cover, but the car must not be parked on a public road while uninsured or untaxed.

Final note

Impounded-car insurance continues only for the short term shown on the policy certificate, typically a few weeks at most. It gives you enough time to collect and regularise the vehicle but isn’t meant for long-term use. Always replace it with a standard annual policy — or declare the car off-road — before it expires to stay fully legal and avoid another impound notice.

Check here for more useful information about impounded cars!

Please note: impound rules, collection windows and fee structures are set locally and can change at any time. Details on this site offer a broad outline only and are not guaranteed to match the requirements of any individual pound or authority.