RTA with no valid insurance

[OzMoSiS]

Hello all, I am in desperate need of any advice, and would be hugely grateful if anyone can help.

I recently had an RTA while commuting to work. My vehicle lost grip whilst going round a sleeping corner on a wet country road. I hit the oncoming traffic. The damage to both our cars is down the side, from the driver wings till the rear doors. Both cars were potential write offs.

The police attended the scene and gathered statements from both of us.

The issue lies in the fact that I had no valid insurance cover at the time of the accident. I had been trying to shop around for a reasonable quote, and after settling with a particular company, didn't manage to confirm new policy to start in time. My previous policy ran out on a Sunday, and I had contacted the new company to go ahead with the new policy to take over from my previous one. However I attempted to contact them on the Saturday before at 12:30pm but they had closed at 12pm.

Under the assumption that people have 7 days to arrange cover, I drove the car to work on Monday morning with the intention to contact the company and proceed with the new policy that morning. Unfortunately that morning was the same eventful morning that I had the accident with an expired policy.

I let both the police and the other party know the situation at the time of the accident. I was also advised by the other party not to worry as I should be covered by a 7 day grace period, which gives people a chance to settle renewal premium disputes etc.

Both vehicles were recovered by the police in order to clear the road as quick as possible. I have paid the recovery company their fees, and collected my damaged vehicle and currently breaking it for parts.

I have since received a letter from the police requesting my insurance documents showing cover at the time of the accident. I called them and explained the situation, and was told not to worry, if I provide my previous policy, and a brief cover letter, it would show that I was genuinely and actively seeking continuous insurance cover and had no intention to drive uninsured.

Obviously my previous insurer are denying any such thing as a '7 day grace period' and are refusing to cover anything. Claiming that they ended the cover on midnight Saturday as I had refused to go ahead with their renewal quote. The 'new' insurance company that I was intending to go with obviously want noting to do with the issue either.

I am now receiving correspondence from the third party insurance notifying me that they had contacted my previous insurer who confirmed that I had no valid policy with them at the time of the accident and therefore will not assist. The third party insurance has handed over the claim to Aviva claims management who notified me that they will be attempting to recoup their outlay from me personally. They have deemed the third party vehicle a total loss, and are threatening with legal action if I do not contact them immediately and settle.

In their letter, they are claiming that I swerved into the other car for unknown reasons and hit it head on. Its clear from both the cars that it wasn't head on, and I lost control due to the road conditions as confirmed by the police.

I do not know what to do, or who to turn to for advice. I cannot afford any legal fees, nor can I afford anything that the third party insurance will be looking to recoup from me. The car they wrote off was a brand new BMW 4 series.

I have now obtained another vehicle as I need it for work and the family, and it is insured adequately.

Could anyone please advise me on what to do or what my options would be.

Many thanks

 

[varesecrazy]

Hi,
Citizens Advice Bureau would be your best bet,

I've had good advice with a similar "stitch-up" in the past.., ( shady private hire company)
BUT , be warned , YOU will have to do ALL the leg-work.

 

[dave]

should have just rang old company and apoligised for late payment and said you did want to renew, then told them about the accident the next day. i dont see why you would think they give you 7 days free cover if you are not staying with them.

 

[g8rpi]

Hi,
Sorry to say this but it's your responsibility. Unless you can prove that the accident was 100% the other parties fault, and it sounds like you have already admitted liability, you will have to pay up. The best you can do is talk to the other parties insurance company and see if you can come to an arrangement over a payment plan. You also need to hope that the police don't prosecute you to add to your troubles.

 

[AndyRKett]

Hmmm I'd be surprised if the police would accept that you'd not intended to drive without insurance, they are famously unsympathetic towards uninsured drivers.

Basically in the eyes of the law you were uninsured and as such personally liable for any damage you cause. Your belief that you had 7 days grace no matter how genuine a belief this was, offers no defence; you're still liable.

Basically the other insurance co will go through the process of first demanding payment from you for their losses and what ever you do you should not admit liability however I suspect you might have already done this either to the police or the other driver at the scene. If you have at any point admitted liability then unfortunately you've put the nails in your own coffin.

The other party will not look to establish if you can/will pay for the damage and if not it's likely that a civil court action will follow.

If found liable, which seems likely, then a court order will be made for you to repay the debt and you should be able to show you are unable to afford the debt and will probably have to set up some sort of payment plan.

In the mean time it's unlikely the police will ignore the offence of driving without insurance and you may have to attend a separate court case for this, and you could still be charged for driving without due care and attention. Hopefully you might get to attend a driving course. But you may still get a fine and your licence endorsed for driving without insurance.

Overall it's a pretty bad situation and as suggested seeking proper help from someone like the citizens advice bureau, however don't hold your breath for any quick cheap fixes, it's likely to get expensive.

 

[OzMoSiS]

not admitting liability is of no use really. What I am seeking is advice on how to go forward and work things out with the third party insurer. It's very unrealistic to go after someone for personal liability and attempt to claw thousands off them. Affordability wise, that will never work. I have had to give up my workplace pension to afford to survive with my family. However I am willing to work with them within what is realistic. Insurance companies make money out of thin air, and they can afford to write off some of the losses.

I will accept whatever the police have to say. Given my clean track record, and their confirmation of the road conditions, I am hoping that they will go with the 6 points and fine.

 

[dave]

given there was an accident you would be very lucky if police do it out of court, having no insurance points on licence makes your premium go through the roof for 5 years too.

expect the worse then if it isn't you will feel better, don't expect the best because if it isn't you will feel worse.

 

[AndyRKett]

not admitting liability is of no use really. What I am seeking is advice on how to go forward and work things out with the third party insurer. It's very unrealistic to go after someone for personal liability and attempt to claw thousands off them. Affordability wise, that will never work. I have had to give up my workplace pension to afford to survive with my family. However I am willing to work with them within what is realistic. Insurance companies make money out of thin air, and they can afford to write off some of the losses.

You have to consider that insurance companies don't make bags of money from writing off new BMW Z4s and not look to recoup their losses, and just being honest with you they won't care too much about your personal circumstances, their argument will be it's a situation of your own making. If you can only afford to pay a small amount each month for many many years to come then that's what they will do, you'll probably also find if court orders are in place then you won't get credit or loans.

Possibly wait to see what happens then consider filing for bankruptcy which is where you'd need advice from the Citizens advice

 

[StevenRB45]

In addition to the above, have you informed the new insurance of the situation? If you haven't you may find they flat refuse to cover you in the event there is another incident. Also depending on their view you may have to declare a pending IN10 conviction until the police confirm no action.

Also I was fairly sure the 7 days grace applies mid year when the policy is to be cancelled for reasons other than renewal (for example you've moved to an address they refuse to cover or you haven't sent documents required) so you have time to find alternative cover or rectify the situation. At renewal you have had at least 21 days notice if not more so 7 days grace wouldn't apply.

 

[Eklipze3k]

My assumption would be that he now no longer needs the new insurance cover, as the car was written off and is being broken for parts.

 

[dave]

My assumption would be that he now no longer needs the new insurance cover, as the car was written off and is being broken for parts.

if this is correct OzMoSiS don't forget to do a sorn as its now not legal to have a car not insured unless it is sorn

 

[StevenRB45]

My assumption would be that he now no longer needs the new insurance cover, as the car was written off and is being broken for parts.

In the OP he does state he has another car and it is insured adequately. I was just pointing out some things that if he hasn't informed his new insurance about may cause problems.

 

[Liquid Knight]

I had a similar incident nine years ago.

I took out my insurance policy on a 1981 MG Midget later swapped it over to a 1979 MGB GT because the GT owner wanted my Midget to give to his wife for Valentines Day. I swapped over insurance and it was only £60 more and carried on as usual.
Six months later I was driving my fathers car when I was hit head on by a tool trying to overtake on a blind bend.
The Police showed up took our details. I explained I was covered to drive other vehicles third party as I was fully comp' on my MG and got a lift home with the recovery people.
I called my insurers to tell them what had happened and try to arrange to dad a courtesy car. They then informed me that because my MGB was two years older than the Midget it qualified for a "Classic" policy that did not cover me to drive other vehicles.

I was therefore driving without insurance.

Because I was driving without insurance, the collision was my fault as I occupied a space in time unlawfully. Even though the driver of the other car admitted fault I could not make any kind of claim as I should not have been on the road. If I wasn't there the collision would not have happened.
I took out a bank loan to replace my fathers car and paid retail for the other drivers car even though it wasn't in retail condition prior to the collision.

He then went to the Motor Insurance Bureau and claimed another £10,000 for whiplash. The M.I.B sent an investigator round and said there was no way he'd get the full amount as the doctor he went to specialized in compensation claims and knew exactly what to say. He got £7,500 that I have been paying back to the M.I.B ever since.

All of this happened before my day in court.

I was prosicuted for driving without insurance, IN10 and careless driving, CD10 even though the Magistrates all agreed the collision was no physical fault of mine it was still my fault by default.
Under mitigation I explained my finances how much the collision had cost me at that point and how much the M.I.B were pursuing me for.

IN10 no points and no fine.
CD10 no points and no fine; but I received an eight week disqualification from driving and had to pay the court full costs of £375

When I went to renew my insurance policy for my MGB I was told by my insurer that because I was a convicted driver they would no longer be able to offer cover. After shopping around I had to sell my MGB GT and buy something more modern as it was going to cost nearly six times my previous policy to keep the classic on the road.

It took five years for my insurance to come down to the level it was before the collision.

Recovery costs £466

£10,000 bank loan at 7.6% over nine years with payment protection total £18,465

£7,500 to M.I.B

Court costs £375

Five years of ridiculous insurance £4,800 (more than it would have been).

Total £31,606

All because I didn't check the small print on my policy when I changed vehicle.



You were driving without insurance deliberately because you were "shopping around" and caused the collision by not driving to the conditions.

Good luck.

 

[pooroldcodger]

Wow! That is a cautionary tale, but also a very sad one.
You have paid many times over for a simple error and because you have been so accommodating you have paid in full to say the least.
I wonder how many of the incidents involving people who have just decided to risk it without insurance have been resolved in such a manner?
As regards the OP. Sorry for the mess you are in. It must be a nightmare, but you only have yourself to blame. Not only because you caused the crash but also because if you didn't have insurance you simply should not have got behind the wheel. Why would you assume that you had "7 days grace period"?

 

[Liquid Knight]

Could have been worse. If I were hit head on in my MGB I probably wouldn't be able to tell you about it.

Always; always check the small print on your insurance.

 

[hennabm]

"7 days grace" tbh I'd never heard of it especially at the end of a policy.


When it expires, it expires, even if you have agreed to renew. Only when you have received the documents confirming your new insurance, are you insured.


Looks like this is going to be a costly pill to swallow.


I would talk to the CAB or a solicitor who deals with insurance (if there is such a thing) for advise but I don't think they will be able to offer anything to save the ordeal you may have to go through.

 

[ChrisUK]

"7 days grace" tbh I'd never heard of it especially at the end of a policy.


When it expires, it expires, even if you have agreed to renew. Only when you have received the documents confirming your new insurance, are you insured.


Looks like this is going to be a costly pill to swallow.


I would talk to the CAB or a solicitor who deals with insurance (if there is such a thing) for advise but I don't think they will be able to offer anything to save the ordeal you may have to go through.

Like wise the only "7 day anything" I've heard of when it comes to insurance is when you buy a new car you sometimes qualify for free 7 days of cover when you get a quote.

 

[Liquid Knight]

There is a fourteen day grace period where you can cancel your policy and get a full refund but that's all I've ever heard of. Like most things in cases such as this the Police, CPS, Magistrates or Judge will tell you...

"Ignorance is no defense".

 

[Most Easterly Pandas]

Only when you have received the documents confirming your new insurance, are you insured.

Not so, if confirmed on the phone you're then also covered.

Like others have said though, not sure where this 7 days grace period has come from. Its almost laughable, and tbh as has as it is you simply were not insured at the time OP.

As others have said make sure your current insurer (of the vehicle you're using) is aware of whats currently happening, as this will potentially affect any / all motor insurance you have.

Also be prepared for points a fine and costly insurance for the next few years

 

[StevenRB45]

Like wise the only "7 day anything" I've heard of when it comes to insurance is when you buy a new car you sometimes qualify for free 7 days of cover when you get a quote.

There is a requirement that if an insurer is to cancel for reasons other than renewal (e.g. none payment of instalments) they must give 7 days notice.