I think your ignoring the new law that came in several years ago that every car needs to have it's own insurance. I know as I drove a car that didn't, even though my insurance allowed me to, but the owner got a letter from the dvla and when we questioned it their answer was the car needed it's own!
I'm usually the last one to stand up for councils, but in this instance....... Councils have their own fleets of vehicles as a lot of specialist vehicles cannot be leased, they have workshops and facilities to maintain their fleets - councils actually earn money from the public from their vehicle related services such as the MOT. It's almost the polar opposite of what you're getting at.
I don't know what to tell you other than that you're wrong.
Good to see councils have the money for this. So much for them being potless.
Was it the nut behind the wheel?