OK, I added another vehicle to my current Fully Comp insurance for 1 month only. A sort of try then buy arrangement.

A mate borrowed the car whom I was assured had policy to drive any vehicle.

Anyway I had a call today from my insurance company advising of a 3rd party incident, I knew nothing of this so called up my mate and was told:

Another driver was acting stupid on the inside lane of dual carriageway, may have clipped a kerb and swerved towards my car. My mate then automatically swerved away and there was no impact however the 3rd party then re-swerved back towards the kerb naturally and hit a post.

My friend saw this in the mirror and returned to the scene but by this time the other driver had gone. As there was no impact and no damage he thought no more of it.

It now turns out my mate has no licence!!!!! I did not know this.

Dilemma is this - there were no witnesses, no damage to my car, no police called, no exchange of policy details as 3rd party driver had gone.

Does the 3rd party have a valid claim stating that my car hit his and caused him to swerve into the post? I dont know what damage was caused and if this 3rd party has insurance themselves. My mate states they did not hit and there is no damage to my car - hence he forgot all about it.

Do I come clean with my insurance company and tell them the driver was unlicenced therefore uninsured hence possibly getting my mate into trouble. Am I in trouble for lending the car to a mate and will I get done for fraud.

Final option as there were no witnesses, no police, no damage to my car, no exchange of policy details - do I just deny the car even being there?

Thank you for your help.

Bump

Well if the third party makes a claim they need to prove that there was an accident and that it was caused by the negligence of friend.

As regards to whether the other party is insured or not, that does not matter. It is a separate issue and nothing to do with liability.

As regards your policy, you are contractually bound to notify them of any incident that may give rise to a claim even if you are not claiming yourself.

As to your "friend", my last thought would be what trouble he might get into. He used your car on false pretenses and put himself, as well as you, at risk.

I would inform your insurer of all the details you know of, including those of your friend. They may be able to put liability on him. Frankly, I would let them.