Probably a bit late for this lol, but for anyone out there wondering what to do.....i removed my rear seats in my Classic panda and the insurance company refused to cover me. So.......i altered the number of seats on the V5 to 2 in the modifications section, and sent it off to Swansea. After many years the V5 returned with the alteration. I then called my insurance company a second time, explained that i had informed the DVLA, they then put me on hold for many months, then returned with a 'Yes'. Result.