Claim against me but was not driving

[Gustacus]

i am in a very complicated situation right now.

 

On the 3rd of September I sold my car to a friend same day he got it taxed and "insured".

 

Next day he gets into an accident unfortunately bumping into the back of somebody due to a very sudden stop and not being able to brake in time.

 

The  accident was claimed and today my insurance texts me saying a claim has been made now.

(Now I have been trying to get my insurance cancelled/suspended but its not been the easiest)

 

thats fine it will go under his insurance i just need to provide my insurance my friends policy number and insurance company.

 

today he told me he was not insured until the 5th of September a day after the accident that means that accident is not insured well this just got complicated.

 

I was on the phone to my insurance company with the mindset im fine and all I just need to provide details and my friend was going to admit to fault to clear my name.

 

he was driving uninsured at the time this claim is against me meaning the insurance can't go anywhere else.

 

My friend is more than willing to face the consequences of driving uninsured and get my name cleared.

 

if he admits to my insurance he was at fault with no insurance provided evidence of me not being in the car at the time as I was in the office as well as

 

evidence the car was not in my ownership through DVLA 

witnesses of the car accident

 

 will I still be able to get this claim off me - provided my friend admits to fault and faces consequences.

 

Would love advice on this as I have never ever been in a situation like this

[dx100uk]

simple fact is

- you were not the registered keeper at the time 

- you were not the driver at the time

 

.....nothing to do with you nor your insurance company.?

 

can't ever see why it would be.

 

[BankFodder]

I suggest that you get your friend to write a letter to all parties – including the third party as well as your insurer making it clear that he was driving at the time and it was him who was responsible for the accident.

I expect that your insurer will be rather surprised because they are probably more used to people trying to claim that they were the driver in order to get the benefit of the insurance and this unusually is the other way round.

Get the letter off and let us know what happens. If they still cause problems then we can help you with a next step which may be an affidavit from your friend and also from you

[unclebulgaria67]

Unfortunately, this is more complicated, as you still had a live Insurance policy for the car and according to the Motor Insurance Database, your Insurers were legally responsible for third party claims. Your Insurers are therefore unable to avoid dealing with the third parties claim.  legislation that covers this is Road Traffic Act. Link below.

 

https://www.legislation.gov.uk/ukpga/1988/52/part/VI/crossheading/compulsory-insurance-or-security-against-thirdparty-risks/enacted

 

Your friend has made a potentially very expensive mistake, but would have little choice in dealing with this. It may not be just the damage to the car, as some people will go on to say they were injured e.g. whiplash.

 

How does this affect you ? A claim will be recorded against your Insurance even though you were not driving, due to the live Insurance. You will have to argue this with Insurers, showing evidence of how you tried to contact them to cancel the Insurance. It is possible that your Insurers may try to seek a recovery against you, if your friend does not pay them, as by not cancelling the policy, you have allowed your Insurers to still be liable, even though you no longer had control of the car.

 

The MIB (Motor Insurers Bureau) may be worth contacting to discuss this, as they deal with such issues on a regular basis. I would attach a link for MIB, but their website is not working. Their telephone number is 01908 830001

 

[Ethel Street]

Do you have a signed confirmation of sale dated 3rd September confirming that the ownership of the vehicle transferred to your friend on 3rd September? What documents do you have confirming the sale?

[Ethel Street]

Have you now formally told your insurer that the policy is to be cancelled from 3rd September?

[Gustacus]

2 minutes ago, Ethel Street said:

Have you now formally told your insurer that the policy is to be cancelled from 3rd September?

Answer both your questions. I have a slip from DVLA printed on the 3rd of September where they say their records have been updated and I am no longer in ownership of the car

 

And for the 2nd one im assumimg I cant cancel my insurance anyway as of now because I have this claim on me

[Ethel Street]

You must put in writing to the insurer today confirming that the policy should be cancelled from 3rd September because you sold the vehicle on that date and no longer have any interest in it. Send them a copy of whatever evidence you have that the vehicle was sold. Also if they sent you a Certificate of Insurance by post when you last renewed the policy post it back to them. (Today because it's 7 days from the date you sold the vehicle and there's 7 day deadline for returning the certificate)

 

Don't wait for your friend to write a letter to insurers, you must take action immediately to write to your insurers. A letter from your friend, as suggested in post 3, would also be helpful. I'd ask the friend to give the letter to you so you can be certain your insurers get it and you know what it says.

 

There is no claim under your policy. Only you can make a claim under your policy and you aren't because at the time of the accident you didn't own the vehicle and weren't driving the vehicle. I do not agree with unclebulgaria that this will be recorded as a claim against your policy. The insurer may attempt to do that but they are not entitled to because it is not a claim under your policy. If your insurer has to pay the third party (and the law's not at all clear in cases like this where the vehicle had already been sold) it would be dealt with by what's known as a 'Section 151 claim'. That is not a claim under your policy.

 

This paragraph from a recent seminar on s151 claims is relevant to your situation, although unfortunately it only confirms that the law is unclear. 

 

 

https://www.2tg.co.uk/wp-content/uploads/2020/05/2TG-Guidance-Note-Motor-Insurance-Law-for-Learners-JMD-5.5.2020.pdf

Edited September 9, 2020 by Ethel Street

[unclebulgaria67]

If you have definite proof of DVLA notification, then you may be Ok.  Follow the advice of Ethel Street, by making sure the Insurers confirm cancellation from 3//9/20.   Then it won't be a claim against your policy and the Insurers may then argue they were not at risk in regard to S.151of RTA.  

 

It will then be down to your friend to deal with the third party directly.