Question 1

What happens if an uninsured driver hits you?

Accepted Answer

You are not left with nothing, but which route you use depends on your own cover, and the consequences differ.

**If you have comprehensive insurance.** Your own insurer will handle the repair or write-off under your policy. You pay your **excess**, and your **no claims discount is affected** unless you have protection — because the insurer cannot recover its costs from an uninsured party, the claim is treated as fault for these purposes even though the accident was not your fault. This surprises and angers people reasonably.

Some policies include an **uninsured driver promise** — increasingly common — which **refunds your excess and preserves your no claims discount** provided you can supply the other vehicle's registration and evidence that the other driver was at fault. Check whether yours has this, because it changes the outcome substantially.

**If you have third-party only cover**, your policy pays nothing toward your own vehicle, and you need the route below.

**The Motor Insurers' Bureau (MIB).** A body funded by a levy on every motor insurance premium in the UK — so all insured drivers pay for it — which exists to compensate victims of **uninsured and untraced** drivers.

**Uninsured drivers' agreement** covers personal injury and property damage where the driver is identified but uninsured. A property damage excess applies.

**Untraced drivers' agreement** covers hit-and-run cases where the driver cannot be identified. Property damage claims here are more restricted and generally require significant personal injury alongside.

**What to do at the scene:** get the **registration number** above all else, photograph the vehicle, damage and scene, obtain witness details, and **report to the police** — failing to report can prejudice an MIB claim, and driving uninsured is a criminal offence.

**Check insurance status** free through the Motor Insurance Database.

**Legal expenses cover**, if you have it, funds pursuing your uninsured losses.

Question 2

What is a no claims discount and is it worth protecting?

Accepted Answer

A no claims discount (NCD), sometimes called a no claims bonus, is a reduction applied to your premium for each consecutive year you insure without making a claim. It builds up — commonly around 30%

Question 3

What happens if my insurance company goes bust?

Accepted Answer

In the UK, the Financial Services Compensation Scheme (FSCS) exists for exactly this, and insurance is among the better-protected products — but the level of protection depends on the type of cover.

Question 4

Is legal expenses cover on my insurance worth having?

Accepted Answer

Legal expenses insurance (LEI), usually sold as a modest add-on to motor or home policies, funds legal costs for pursuing or defending certain disputes. Whether it is worth the money depends on what

Question 5

What is the difference between third-party and comprehensive car insurance?

Accepted Answer

The difference is whose losses are covered, and the names describe it fairly literally. Third-party only (TPO) is the legal minimum in the UK. It covers injury and damage you cause to other people —

Question 6

What happens to an insurance policy when you sell the item or die?

Accepted Answer

Insurance is a personal contract between the insurer and a specific policyholder covering a specific insurable interest. When that interest ends, the cover generally does — and the details differ by

Question 7

What happens if you get something wrong on an insurance application?

Accepted Answer

It depends heavily on why it was wrong, and modern law treats an honest mistake very differently from a deliberate one. In the UK, the Consumer Insurance (Disclosure and Representations) Act 2012

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