How can I be liable even though I was insured.

armstrongracer

In 2011 I rented a van to move some stuff and took out full insurance. Was in stop start traffic when the car in front stopped suddenly and without warning. I rear ended it at about 5-10 mph, impact was so light my briefcase didnt even fall of the passenger seat. No one was injured, rear quarter and bumper of car in front was creased. Garda called, details exchanged and I filled out an accident report form then and there.

Almost 1 year later I recieved a very agressive solicitors letter which co-incidently bore the same surname as the other driver citing whiplash injuries totally inconsistant with the speed of impact. All this I passed on to the insurance company. Then almost 18 months after the accident I recieved a letter from solicitors representing my insurer asking for details about the accident, the other party had only just put a claim in. I repeated everything as per the original report was very surprised to hear that the other car had been written off & scrapped and the other party was looking for €7k replacement value, my own estimate would have been €1,500 damage, maximum. I left it with them.

Then last week, over 2 years after the original accident I was served circuit court papers with myself and the van rental company as co-defendents. The other party is seeking the €7K vehicle replacement plus legal costs. Whiplash claim has vanished. I contacted the solicitors and it transpires that they are actually representing the van rental company, not me and they are advising the rental companies insurer to make an economic settlement.

Have I been hung out to dry here? My assumption was, that by shelling out for the full insurance package, I would be fully covered with respect to accident damage to the vehicle I was driving and the other parties vehicle. If as it seems, the other party is trying it on and the insurance company makes a reduced offer, will the claimant come after me for the balance, and do I have to pay for my own defence if it goes to court. I certainly can't afford even a day in court, what did I actually pay insurance for?

coylemj

In a civil claim for damages arising out or a motor accident, it is the owner of the vehicle who is ultimately liable so as the person who rented the vehicle on the day, I wouldn't worry too much about it. The insurance will cover it, failing that the van rental company will have to shell out.

It sounds to me like the rental company is playing silly buggers and not replying to letters from the other guy's solicitors so they're lumping you into the claim to spread the net as wide as possible.

armstrongracer

The van rental company was one of the larger international ones and their insurer is in the UK. Having lived and worked there for many years I know that they would have had no tolerance for an obvious 'compo' claim. The other party never actually put a repair estimate in they got rid of the vehicle even though it was drivable after the accident and a claim was put in for their percieved replacement value without evidence. The court papers were served directly on me and also the Irish trading office of the rental company. We are cited as co-defendants. I don't know what may or may not have gone on between the claimants insurers and the rental companies insurer that precipitated legal proceedings. What is actually pissing me off is that I thought that the rental companies (Dublin) solicitor was representing me when they first made contact and I gave them all the facts, sketches, google map images showing the scene and my view that the car was not damaged enough to be written off. They appeared to know very little detail about the accident before hand. If I knew then what I know now I would have told them the car was smashed to bits and they would have paid in full. End of.

Coylemj, Is there anywhere I can get written clarification about ultimate liability being the vehicle owner, the van company's solicitor could be playing silly buggers here to keep their and their clients cost down. If I can bounce the ball back firmly into their court it will help me no end. There's an emergency board meeting at work next week and winding up is on the cards, god knows I don't need legal bills and this hassle right now.

coylemj

By any chance did you keep the copy of the rental agreement i.e. the paperwork you got when you rented the van?

armstrongracer

Err no, Have the top sheet of the rental agreement showing that I ticked all the boxes regarding insurance etc. Unfortunately the delay taken by the other party to actually put a claim in meant that the rest of the paperwork is long gone.

Strong arm

It is standard for the driver to be named in proceedings such as this - it does not mean the insurance company are hanging you out to dry - best thing you can do is ring the ins co/ rental company to find out what their position is on this . Usually they will run the case and deal with costs etc. in practical terms it s The insurance company that the claimant wants to pin down as they are a better mark ( more likely to have means and to pay out !) they will probably want you as a witness if they are going to challenge the amount . As it seems you are admitting liability ( accident was your fault) it will be a question of how much the ins co believe the damage is worth ? Try to get confirmation in writing from the ins co that they are indemnifying you in respect of the incident and try to get a copy of your rental agreement , ins for the rental period in case you need it later on . If the ins co says you are not covered for the incident ( highly unlikely) then consult a solicitor straight away !

ResearchWill

armstrongracer wrote: »

In 2011 I rented a van to move some stuff and took out full insurance. Was in stop start traffic when the car in front stopped suddenly and without warning. I rear ended it at about 5-10 mph, impact was so light my briefcase didnt even fall of the passenger seat. No one was injured, rear quarter and bumper of car in front was creased. Garda called, details exchanged and I filled out an accident report form then and there.

Almost 1 year later I recieved a very agressive solicitors letter which co-incidently bore the same surname as the other driver citing whiplash injuries totally inconsistant with the speed of impact. All this I passed on to the insurance company. Then almost 18 months after the accident I recieved a letter from solicitors representing my insurer asking for details about the accident, the other party had only just put a claim in. I repeated everything as per the original report was very surprised to hear that the other car had been written off & scrapped and the other party was looking for €7k replacement value, my own estimate would have been €1,500 damage, maximum. I left it with them.

Then last week, over 2 years after the original accident I was served circuit court papers with myself and the van rental company as co-defendents. The other party is seeking the €7K vehicle replacement plus legal costs. Whiplash claim has vanished. I contacted the solicitors and it transpires that they are actually representing the van rental company, not me and they are advising the rental companies insurer to make an economic settlement.

Have I been hung out to dry here? My assumption was, that by shelling out for the full insurance package, I would be fully covered with respect to accident damage to the vehicle I was driving and the other parties vehicle. If as it seems, the other party is trying it on and the insurance company makes a reduced offer, will the claimant come after me for the balance, and do I have to pay for my own defence if it goes to court. I certainly can't afford even a day in court, what did I actually pay insurance for?

It is normal as someone else pointed out for the driver to be named in fact he has to be named, the rental company should also be named. Contact the solicitor for the Rental Company and have them confirm that they are acting for both parties and that the Insurance company is giving a full indemnity to you. Also dont be suprised if another set of proceedings arive in relation to any claimed Personal Injuries. But if it is post 2 years and there has been no PIAB claim they may be too late.

Highwayman1888

If your cover was in order on the date of the accident then you have nothing to worry about the ins company will handle it. The solicitors name you as a party to proceedings in case you were not insured at the time and they would therefore follow you for damages. As liability is not an issue you will not be required as a witness as it is a matter for the engineers to argue as to the extent of damage to the vehicle. Get on to whoever was insuring you at the time and ask them if they are indemnifying you .... If they are then you have nothing to worry about.