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DVLA accusing me of having no insurance - what can I do?

I have received a letter from the DVLA saying I wasn't insured on 10 July this year. I believe this is not true as I was on a garage policy for my car and many others.

However, despite repeating this to the DVLA, I am now being taken to court. The garage assures me I was on the policy irrespective what the DVLA says, but I am now getting worried. Who's right here?

Asked on 16 October 2013 by MondeoMonkeyMagic

Answered by Honest John
Dealers are now obliged to register online all vehicles being run on the roads under their trade policies after a few days possession, and to remove them as soon as sold. Anything registered online will appear on the DVLA databank as insured.

There are two matters here: one is whether you personally were insured by the garage to drive cars on its trade policy; the other appears to be a refusal to cover your car. This cannot be covered by the garage trade policy because it isn't their car. It's your car.
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