Car Insurance Insiders

oldguysrip

Hi,

I have a friend in a unique situation and I'm hoping that someone who understands the ins and outs of car insurance can advise. First off can I say I have advised her to hire a solicitor, but is reluctant an will probably bury her head in the sand and hope for the best.

OK Here goes. She was driving one evening and was rear ended by another car significant damage caused, 3k or so. Its a clear fault of the car behind. They exchange insurance details and call a guard who records the incident.

Next day she contacts here insurance company who informs her her policy was cancelled six months ago. It turns out a parent who was given the cash to handle all paperwork had a hidden problem and somehow managed to bounce cheques and get a disc out of the company. (This was also done for 2 other cars in the household) My friend was blissfully unaware of this and obviously when she was at work and the letters came (I assume) they were destroyed before anyone in the family seen them. Now my friend is stressed and worried that the other driver will claim personal injuries even though they were 100% at fault in the normal circumstances.

So the question is Should the insurance company not have informed the policy holder directly that the policy was cancelled and secondly does the fact that she was uninsured automatically make her responsible for the accident even though she did not cause it.

I would be grateful for any advice for this young person who finds herself in this situation through absolutely no fault of her own.

As this is a delicate situation I would be grateful if readers would avoid reposting this or sending links around other than to experts who can advise.

Thanks for you help

farmchoice

hi i work in the buisness and this is the situation.
firstly she does not appear to be at fault for the accident and the fact that she has no insurance does not change this. she can claim against the other party if she wants.
secondly it does not seen that the company somehow messed up and cancelled her policy, it seems that it was done with intent by the parent in question but it is hard to say really how this happened without more info, if the company were sending out letters to her address that she was not getting thats not the company's fault.

at this stage i would do nothing and hope that the other party does not make a claim against her, they have no case and would not win but it would be a load of hassle if they did. if they do then contact a solicitor

oldyouth

Having, or not having insurance doesn't affect who is ultimately responsible for the loss, so don't worry about that end.

Just to clarify, is the policy in the name of the driver or the parent? The insurance compamy is only obliged to correspond with the policyholder, not any named driver. If your friend was the policyholder, the insurer has to send a registered letter of cancellation to the last known address notifying them of a date that all cover will cease. Under certain circumstances, that can be 'ab initio' (from the inception date of the policy) which means that cover was never in place. Also note that the insurer is only obliged to send the registered letter, they do not have to prove it was received. If it is returned to sender, insurers will hold that on file. If someone has signed for it on your behalf, they can direct you to that person to seek redress for any loss.

Before everyone starts mentioning the MIBI, I am aware that they would look after any loss to a 3rd party, whether the policy was live or not. Your friend needs to get a policy sorted out now, going forward, but make sure she discloses the full recent history. I regret to suggest that this too will cause her a problem but it is the only way

oldguysrip

Thanks to both of you I appreciate the advice and will pass it on. No responsibility in this rests with the Insurance company and I didn't mean to imply otherwise.

Thanks again

oldyouth

oldguysrip wrote: »

Thanks to both of you I appreciate the advice and will pass it on. No responsibility in this rests with the Insurance company and I didn't mean to imply otherwise.

Thanks again

OP, if the insurance company didn't follow the 'rules' to the letter there, a good solicitor will discover it for you. Might be worth considering

oldguysrip

The good news is that it ended in a back to back walkaway. Thanks for your help.

shangri la

A back to back walkaway?

Did she claim off the other driver for the damage to her car?

ResearchWill

shangri la wrote: »

A back to back walkaway?

Did she claim off the other driver for the damage to her car?

I would assume not each party pays own loss. I can understand this in the particular situation pushing the matter may result in it becoming know that a party had no insurance, and possible non insurance charge in the DC.