- You really shouldn't be driving around on false plates, which is what they are now the registration number is associated with another vehicle;
- I don't think you can be insured, as the insurance is for a vehicle with a particular registration number, and yours doesn't have that registration number. But you should check with your insurer, who will probably have some process for dealing with such situations so as to keep you legal.
- You should be able to tax it: DVLA are the ones to speak to, as they'll definitely know how to take your money off you whatever the circumstances
If the registration number has been transferred to another vehicle, a new one must have been issued for your vehicle. As you have the VIN (it being on the car), I would expect you can get the new registration number using that, if not online then by phoning DVLA. Then call your insurer to notify them of the change and that should all be OK
If I was in your shoes I'd be down the dealer's first thing Monday morning getting them to sort everything out and providing you with written indemnity for any legal costs, loss of earnings, etc. you incur if you're stopped by the police, the vehicle is seized, and you're threatened with prosecution.
It probably wouldn't come to that in practice (unless you are in fact uninsured, in which case they'd throw the book at you, as ensuring that is your responsibility as the driver), but it could still cause you a lot of hassle sorting it out.
IMO the dealer should never have sold the car until after the de-registering/re-registering process had been completed. If they whine about DVLA and paperwork taking time, and you can't find out what the new registration number is to sort out insurance and new plates straight away, then demand a courtesy car until they've sorted out the mess they've handed you.
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