Withdrawn indemnity
If you are involved in a car accident claim, and your insurer decides that your circumstances are significantly different from what you said when you took out the policy, or if you do not co-operate with your insurer, your insurer may withdraw indemnity from you. This means that you are no longer covered under your policy, but your insurer will still have to meet claims submitted by innocent third parties.
If you are an innocent third party
If you are the innocent party in a car accident claim, and the third party insurer withdraws indemnity from the third party you are still entitled to recover your costs from the third party insurer. Click here for further advice.
This could be for example because the third party has decided to leave the country, and doesn’t reply to the third party insurer’s efforts to get in touch with him, or it could be because the other driver’s car was souped-up to make it go faster than the manufacturer’s specifications, and this wasn’t declared when the policy was taken out.
Uninsured drivers
It could be that the third party vehicle in a car accident claim is only covered when driven by the one driver named on the policy. So if it caused an accident when driven by an unnamed driver, the vehicle and driver are uninsured. You can still make a car accident claim against an uninsured driver in these circumstances, because the third party vehicle is still covered for third party car accident claims. For further advice click here.
Uninsured cars
It is estimated that over one million cars on the road carry no insurance at all. If you are unlucky enough to have to make a car accident claim against an uninsured car, the Motor Insurance Bureau, which is paid for by the motor insurance industry, may pay all or part of your vehicle damage and other costs caused in the accident. Special rules and procedures apply, so if you need to make a car accident claim against an uninsured vehicle get specialist advice Click here.