Uninsured / Untraced Driver

Unfortunately it is estimated that there are over a million uninsured drivers in the UK, who cost the average policyholder £30 a year in increased premiums. If you are the victim of an uninsured or untraced driver help is available, and you can be reimbursed for damage or loss. Every car insurance provider in the UK must be a member of the Motor Insurance Bureau (MIB) and help fund its operations. This means that there is a pool of money reserved for you if you find yourself involved with an uninsured of untraced driver.

You are not likely to know that the driver is uninsured at the time of the accident. It is unlikely that you will be given their accurate name and address: if they flaunt the law in respect of insurance, they are not likely to follow the correct procedure here either. Even if you suspect that they give you incorrect information, always write everything down that they say: the more information you have, the more it will help you later on.

You should follow the usual guidelines given by your insurer in the event of an accident (see Duties after an Accident). In addition, you should try to take a picture of the other driver: this will help later on. If you wish make a claim to the MIB they will require the driver's car registration number.

If you have fully comprehensive insurance, you are advised to simply claim on your own policy. This is mainly due to the fact that the repair will be carried out quicker if you claim against your own insurance; if you make a claim to the MIB, you may be without the use of your vehicle for a substantial period because their enquiries take much longer. This is also the case where any of your property has been damaged, or lost, due to an uninsured or untraced driver. Nonetheless, there may be instances where you do not wish to claim from your own insurance. Instances include: if you would lose part, or all of your no claims discount, and/or where you are required to pay a large excess. However, if you have only third party or third party fire and theft insurance you will require compensation from another person.

The MIB attempts to cover you as the other driver's insurance would have; this includes injury to you (and your passengers) and damage to your property. In addition, you can claim for other losses as a result of damage to your vehicle, for example the cost of a hire car. You may also receive a refund of solicitor's costs arising from your claim.

There are however certain conditions. If you were a passenger and you knew that the driver was uninsured, you are not entitled to claim compensation for injury, death or loss. In addition, in the case that it is not possible to identify an untraced driver's vehicle, you may not be entitled to a pay-out for damage to, or losses as a result of damage to, your vehicle or property. You must also:

• make your injury claim within three years.
• make any claim for damage to property within six years
• report the accident to the police

The MIB can charge you an excess of £300 (as of May 2008), which helps to deter potential abuse of their service. If this excess did not exist they would see a huge rise in claims, for pay-outs for things such as damage from supermarket trolleys, where the perpetrator leaves the scene believing the damage to be trivial.

The MIB's investigation will: establish the facts; confirm the identity of persons involved; wish to see the police report; obtain impartial reports from mechanics and witnesses; contact other people who could help, such as your insurer or the DVLA; obtain a copy of all relevant medical records; and obtain an impartial report. This investigation aims to be concluded within three months. However, there may be instances where claims take longer; for example, if there is a dispute over who is at fault or conflicting evidence exists.

If you are the victim of an uninsured driver, you may be entitled to free legal cover. Although you make your claim to the MIB, this cover (up to £100,000) would be provided by an independent insurer. If you are involved in such an accident, ask the MIB whether or not you are entitled to legal cover.