Does a Penalty Charge Affect Car Insurance?

Did you receive a Penalty Charge Notice (PCN) and are wondering if it can affect your car insurance? This guide is here to help. Each month, more than 130,000 people visit our website for advice on fines and parking tickets, which is not surprising, as Churchill Motor Insurance reports that in 2022, UK councils issued an average of 19,631 daily parking fines, a 12% increase from the previous year.¹

We know that getting a PCN can be both annoying and puzzling. This article will help you make sense of:

What a PCN is and why you could have one.
Whether you have to pay it straight away.
How to fight the charge if you think it’s unfair.
Times when you might not need to pay.
What could happen if you decide not to pay.

We’ve been in your shoes, and we’re here to walk you through the facts. Let’s get started!

Most Appeals Succeed

In some circumstances, you might have a legitimate reason not to pay your fine.

It’s a bit sneaky, but the last time I needed legal advice, I paid £5 for a trial to chat with an online solicitor called JustAnswer.

Not only did I save £50 on solicitor feeds, I also won my case and didn’t have to pay my £271 fine.

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*Around 35,000 people dispute their tickets each year with the Traffic Penalty Tribunal, and a striking 64% of those appeals are successful, so it’s well worth a try.

Can a Penalty Charge Notice Affect Car Insurance in Any Way at All?

Okay, now we know that you can’t be prosecuted for the offence that the PCN was issued for.

And because of this, there is no risk of you having penalty points added to your driving licence, I can now answer this question definitively.

If you receive penalty points on your licence, you are legally obliged to inform your vehicle insurance provider of this.

And this would mean that the cost of your insurance premium would likely go up the next time you renew it.

But as there is no risk of getting any points on your licence for a penalty charge notice.

As such, you don’t have to inform your insurer, and the cost of your premium will not be impacted.

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Can you have 2 PCNs a day UK?

The rule is that you could get a PCN for the same offence every 3 hours.

So, if you’ve parked in a prohibited zone for a long time, you’d get several tickets.

However, I suggest you should check the times the PCNs were issued.

If there are less than 3 hours between two of the tickets, you could have grounds to have the second PCN cancelled.

Successful Appeal Case Study

Situation

Initial Fine	£100
Additional Fees	£171
Total Fine	£271

The Appeal Process

Scott used JustAnswer, online legal service to enhance his appeal. The trial of this cost him just £5.

Total Fine	£271
Cost of legal advice	£5

JustAnswer helped Scott craft the best appeal possible and he was able to win his case.

Scott’s fine was cancelled and he only paid £5 for the legal help.

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Do You Need To Pay the Penalty Charge?

The only time you won’t have to pay the penalty charge is if you appeal against it and win the appeal.

You can’t just ignore it, as the council will continue to seek settlement of the debt.

You have just 28 days (from the date the PCN was issued) to pay it in full.

You can’t pay in instalments.

Local authorities offer a 50% early settlement discount in the first 14 days.

If you don’t pay within 28 days the council will ask the court to issue a charge certificate demanding that you settle the penalty charge within 14 days of the date the court issued the certificate.

The cost of the PCN increases by 50%.

If you continue to ignore the penalty charge notice after this process, you could find that the council will seek a County Court Judgment (CCJ) against you, in an attempt to collect the debt that you owe them.

A CCJ will adversely affect your credit score and be a black mark on your credit report for several years.

It is best to avoid this outcome if you can.

Appealing Against a Penalty Charge

You can find some good advice online about appealing against a PCN.

Something to keep in mind though, is that things like spelling mistakes, or the date being wrong, are not seen as valid reasons to overturn a PCN.

Neither is the fact a PCN was issued long after the offence took place.

Some local authorities offer an online portal to start the appeal process.

If not, you will have to begin the appeal in writing within 28 days of the date of issue on the PCN.

You could use an appeal letter template to start your appeal by post.

The council will respond to your appeal by post and it is possible that you will be asked to provide more evidence.

If not, you will be told if the appeal was successful or not.

If it wasn’t you have two choices left. One, pay the penalty charge, and two, escalate an appeal to an independent tribunal. If you decide to appeal, here’s what a normal process looks like.

Process:	Steps you should take:
When you receive the ticket…	You should gather as much evidence as you can to support your appeal claim and prove that the ticket was unfairly issued.
If you were given the ticket in person/attached to your car…	You must make an informal appeal (sent to the local authority/council that issued the PCN) within 14 days. This should be a letter with the evidence proving why the ticket was incorrectly given.
If it was posted to you…	You will be given 21 days to submit an informal appeal (from the day you received the letter). Your informal appeal should be a letter with the evidence proving why the ticket was incorrectly given.
If the informal appeal is rejected…	You will receive a Notice to Owner and will have 28 days to respond to this with a formal appeal. You can conduct the formal appeal online or via paper form. The Traffic Penalty Tribunal can send you one of these forms.
If the formal appeal is rejected…	You will receive a Notice of Rejection. From here, you are free to challenge the council’s verdict at an independent tribunal.
If the independent tribunal disagrees with your appeal…	You should pay the ticket within 28 days of the tribunal rejecting your appeal. If you don’t, the fine will be increased by 50%. If you don’t have the money to pay the fine, you should contact Citizens Advice or another debt charity.

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FAQs

How long does a council have to issue a PCN?

The council doesn’t have a time limit to issue a Penalty Charge Notice.

Do I get a grace period before a PCN is issued?

Yes, you should be allowed a grace period after the time you paid for runs out before a PCN is issued.

Will a council take me to court if I don’t pay a PCN?

Yes, you risk being taken to court over an unpaid PCN and an Order for Recovery will be issued which means bailiffs will be charged to recover what’s owed.