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John
John, Solicitor
Category: Law
Satisfied Customers: 1499
Experience:  10 years legal experience
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I was involved in an accident that wasnt my fault and the

Customer Question

I was involved in an accident that wasnt my fault and the other driver ran due to no insurance, they where never caught, anyway my car was on finace and my insurance deducted £2000 from my settlement figure as the third party normally pays that but of couese they wernt insured... this left me in a £2000 shortfall with my finace company which they expect to be payed in 3 months... i am only 19 and have 2 kids and strugglying getting to work as i dont have no car on money... i dont understand how ive lost out so much for something that 100% NOT my fault
JA: Where are you? It matters because laws vary by location.
Customer: Southend on sea
JA: What steps have you taken so far?
Customer: I have to pay 2 payments of £755 to my finace company and the insurance i was with poilcy is now cancelled
JA: Anything else you want the Lawyer to know before I connect you?
Customer: No
Submitted: 19 days ago.
Category: Law
Expert:  John replied 19 days ago.

Hello, how are you? Welcome to JustAnswer. My name is***** am a solicitor and I will be assisting you today. Please note there may be delays in responding as I am away helping other customers but I will get back to you as soon as I can. I may also need to ask you some clarifying questions to determine the legal position.

Customer: replied 19 days ago.

Okay thats fine just want advice really because with my insurance and finace combined they have put me in depression and in a bad finacial status

Expert:  John replied 19 days ago.

Hello, sorry to hear about this. Did you claim injury for this and did the claim go through the Motor Insurers Bureau? I look forward to hearing from you.

Customer: replied 19 days ago.

Im through slater and gordon but its not progressing well... no i didnt go through them

Expert:  John replied 19 days ago.

Sorry, is that a yes? Slater gordon are acting for you for your injury? please confirm. Please also confirm the status of the third party, if they ran away and was never caught, how do you know they were uninsured?

Customer: replied 19 days ago.

Yer slater and gordon are, the police told me

Expert:  John replied 19 days ago.

Ok perfect, thanks. If the police told you this, it means they at least have the registration of the vehicle and the vehicle must have been stolen (if the driver has not been caught) is this correct?

Customer: replied 19 days ago.

Yes this is correct

Expert:  John replied 19 days ago.

Ok thank you, ***** ***** me a moment to type my response to you, thank you in advance for your patience.

Customer: replied 19 days ago.

Okay

Expert:  John replied 19 days ago.

Thank you again for your patience.

Sorry to hear you have been through this and hope you were not too hurt. I am happy to provide my advice as follows.

If the vehicle was stolen, is uninsured and the driver unidentified, Slater Gordon will have to process your personal injury claim through the Motor Insurers Bureau (MIB) under the Untraced Driver's Agreement. The MIB are a government body that awards compensation to victims of road traffic accidents due to the negligence of uninsured and untraced drivers. In your case, the driver has been Untraced and Slater Gordon will be able to explain to you the intricacies of the Untraced Drivers Agreement should you wish.

Under the Untraced Drivers Agreement, the MIB do not deal with subrogated losses, these are losses brought by another organisation but through you. For example, your insurers would not be able to recover the cost of their outlay from the MIB, whereas they normally would if another insurance company was involved. This can sometimes affect the total amount the insurer pays out as they know it is not recoverable.

From your initial message, I take it the vehicle was a write off/total loss. When a vehicle is a write off, the insurance company normally pays "market value" of the car, as the settlement cheque. This figure is 99% of the time lower than what the purchase price was for the vehicle. If you have the vehicle on finance, this can leave a shortfall. Hence it is encouraged to take out GAP insurance to cover the cost of this; GAP insurance in your situation would have covered the "gap" of £2000 so you are not out of pocket.

It is unclear from your message, if the deduction of £2000 is just a simple Pre-accident valuation of the vehicle, or if it is your policy excess. If it was for your policy excess, then I am afraid they are justified in doing this as per the terms of your policy, and whilst being out of pocket for this amount in the meantime, it is something you will be able to reclaim back from the MIB when your claim is processed.

If the £2000 is not the excess, then the GAP insurance explanation above applies. In this case, if you have already "accepted" the settlement figure, it will be deemed in full and final, but if you have not yet accepted it, then you can try and obtain a second valuation of the vehicle using an independent garage just to verify the amount is accurate.

In any event, this loss will need to be put forward to the MIB for their consideration by your solicitors Slater Gordon so eventually you should be able to recover this back as part of your claim.

Regarding your finance company, they will understand it is a difficult time, therefore they should be flexible in the repayments to them. If you cannot pay £755 per month to them, you will need to tell them so they can spread the payments thinner over a longer period of time. If they refuse, then you have grounds to complain against them officially, and escalate it to the Ombudsman as you cannot be penalised for an accident that was not your fault, in essence your quality of life should not change albeit it has been made more difficult, so your finance company should have a bit more understanding. Speak with them about the payments and they should assist.

To summarise, your solicitors will be able to claim back for any uninsured losses you have sustained and it is their job to negotiate this on your behalf, and your finance company should be flexible in any repayment terms.

I hope this helps you gain more clarity and wish you well. Thank you again for visiting JustAnswer, please let me know if you need me to clarify anything or if you have any additional questions. I am happy to help.

Expert:  John replied 19 days ago.

Hello, just following up on this to ensure you're satisfied with what you need to do. Please let me know if you need me to clarify anything or if you have any additional questions. I am happy to help. All the best, John.