Don't get caught out!
We are encouraged to car share or indeed after a party you may become a passenger in your own car. But this sharing could become very costly if you let someone else drive your car...
When a person insured to drive a car becomes a passenger in that car, which they have allowed to be driven by someone not named on their policy or does not have their own insurance cover (i.e the driver is not insured) and the passenger (you) is injured as a result of negligence of the driver, the insurers of that vehicle are bound by law to compensate the injured passenger, even though the driver was not covered under the terms of the policy.
There is however, a catch. The law states that where an insurer has become liable to pay compensation on behalf of an uninsured driver, that driver and the Insurance company are entitled to recover the amount of compensation paid from the person who caused, or permitted the use of the vehicle, i.e the passenger.
A typical situation:
Let's take a look at a real life example. You go to the office party, decide to have a drink thinking you can leave your car at the office and collect it the next day. A friend, who hasn't had a drink offers to drive you home in your own car and you agree. You have an accident on the way home and are injured as a result. Your friend doesn't have their own insurance and your policy does not cover them for driving.
Your insurers are obliged to pay your claim as you were the passenger, but as you permitted use of your vehicle to someone who was uninsured, the insurers can recover that compensation directly from you!
It is most important that if you own a vehicle and take out an insurance policy you must ensure that any other person that you allow to drive that vehicle has insurance to do so or is covered under the terms of your own insurance policy.
If there is any doubt about whether another person is insured, check with your own insurance company, before allowing any other person to drive your vehicle.
If you have been involved in a road traffic collision and wish to discuss your situation in a free, no obligation chat please contact us on 01392 344800, or request a call back.