If you have a car accident and the other driver is uninsured and is at fault, then do not despair. You will not necessarily lose your no-claims discount, but it is quite likely that you will. It is a sad fact that one in twenty car drivers are uninsured, so the chance of being involved in an accident with one is quite high.
If you have a comprehensive insurance policy, then you can claim from your own insurance company. If you have a no claims discount, then unless it is protected it will be lost. Also you will need to pay any excess that is on your policy.
If you have only third party insurance, then your insurance company will not pay out on any claim. You will have to pay the costs and try to recoup them later.
Essentially there are two ways to go about recouping the costs. The first is to pursue them in a court of law using a small claims procedure. This is relatively inexpensive, but if the driver is not able to pay, then you will receive nothing or at best a small fraction of your claim. That the driver is uninsured would suggest that he does not have sufficient funds to compensate you.
The second way is via the Motor Insurers Bureau (MIB). This is a fund that is contributed to by all the insurance companies for the express purpose of compensating victims of uninsured drivers. You can claim compensation for personal injury and damage to your property. Unfortunately there is one exception to this. If the uninsured driver cannot be traced and the vehicle cannot be identified, then you will not receive compensation.
The cost of uninsured drivers is a burden that we all have to bear. It costs insurance companies around £380 million a year and it consequently adds around £30 to your insurance premium. Make sure you're insured. You can find quality insurance at Endsleigh car insurance for example, and seeing as they have a website it is easy enough to get a quote!
