Motor finance companies can from this month reclaim illegal vehicles from police. 

The Association of Chief Police Officers said that last year officers seized a record 170,000 uninsured vehicles. But it warned the number driven without cover is increasing.

Seizures are made under the Vehicle Recovery Scheme, a partnership between the Finance and Leasing Association (FLA) and the police. Police seizing a vehicle check whether an FLA member has an interest as the legal owner.

The finance company will be asked to take possession if the finance customer as registered keeper does not collect it, repay all charges owed and ensure it is road legal. Driving without insurance nullifies car finance contracts. 

FLA head of motor finance Paul Harrison said: “We estimate our partnership with the police could lead to more than 20,000 illegal vehicles being taken off the road.”