Uninsured Losses

Recovering losses from third parties

Firstly, you should contact your insurer to see if legal expenses/protection are part of your insurance policy. If they are, your insurer will help you to recover all uninsured losses after a traffic accident. If not, you will have to seek independent legal advice to assist you with your claim.

Pursuing the claim yourself

Damage to your car
If you are third party insured or decide not to make a comprehensive insurance claim, you may be able to recover the cost of repairing your car, or its market value if it is uneconomic to repair, from the other driver.

Policy excess
If you are claiming under a comprehensive policy which is subject to an excess, you will normally have to pay the excess to the repairer before being allowed to collect the repaired vehicle. Remember to get a receipt showing that the excess has been paid.

Loss of use of vehicle (hire charges etc)

If your car is damaged and off the road you can charge 'reasonable' hire charges, public transport costs or general damages. Contact the other driver's insurers (by telephone and writing) to see if they have any proposals relating to providing another vehicle. If they do not, you may have to pay at first and then claim your expenses later.

Hire charges should not be:

  • more than the market rate
  • for a larger car
  • claimed for longer than it would be reasonably necessary to repair or replace the damaged vehicle

As a claim for loss of use is for inconvenience and not compensation for financial loss, courts tend to award less than the equivalent cost of hire. However awards do vary considerably in this respect.

Towing and storage charges

If you are claiming the cost of the repair or the total loss of your vehicle from your own insurers, they will normally pay reasonable towing and storage charges as well. If you are claiming from the other side, remember that storage charges will not be recoverable if there is unreasonable delay in repairing your vehicle or disposing of the salvage if it is a write-off.

'No claims' discount

A 'no claims' discount is not normally recoverable, although there have been one or two instances of successful recoveries in court in the past. However, provided you are able to recover uninsured losses on a full liability basis (ie showing no fault on your part in the accident) from the other party's insurers, your own insurers may reinstate your discount. If the other party is not covered by insurers, then your insurers may wish to recover their outlay (if any) from that party before agreeing to reinstate your discount. You should, however, remember that it is strictly a 'no claims' discount and not a 'no blame' discount.

Clothing and personal effects

  • If you have sustained loss of or damage to clothing and/or other personal effects, keep the damaged articles for a reasonable period (inspection may be necessary).
  • Claims should be supported with evidence (eg receipts), but if this is not available you should be able to advise the approximate date and purchase price of each article.
  • You will be able to claim the value of each item at the time of the accident, which may be less than the cost of replacement.

Emergency treatment

If a person was injured in the accident you may receive a bill for the emergency treatment rendered at the scene or immediately after. This is a statutory charge and should be referred to your own insurers immediately for payment. These payments will not affect your 'no claims' discount.

Personal injury (including loss of earnings)

THE HANDLING OF CLAIMS FOR DAMAGES FOR DEATH OR PERSONAL INJURIES REQUIRES EXPERT KNOWLEDGE. You should immediately seek legal advice.