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Is my daughter really liable for a £27,000 car hire bill for the third party following an accident?
My daughter’s car was stolen in July, 2009. It was smashed into a car causing a write-off of my daughter's car. The insurers did not pay up as she had lost her keys, and they said she didn’t keep car safe etc. That was the end of the matter until last week when, out of blue, we received a court summons from the owner of the other damaged car, claiming £27,000 for hire car charges.
This seems excessive. Is she liable for this? We have, of course, consulted a solicitor. We think the other car owner is using one of those 'no-win, no-fee' compensation solicitors. It will cost us a fortune if it goes to court. Help!
This seems excessive. Is she liable for this? We have, of course, consulted a solicitor. We think the other car owner is using one of those 'no-win, no-fee' compensation solicitors. It will cost us a fortune if it goes to court. Help!
Asked on 14 October 2010 by MS, via email
Answered by
Honest John
Lucy Bonham Carter of www.autosurance.eu advised:
"It's a nasty one as she is potentially personally liable for the £27,000 because the insurer refused to indemnify - possibly with good reason. I don't know that yet as she hasn't come back. It’s potentially a tricky one as she could be liable for the credit hire and also for any personal injury. The MIB (as the insurer of last resort) won't pay out if there was a policy in place - which there was - so there is potentially a claim on the policy. However the insurer will seek to argue she was negligent and hence refuse to indemnify - which means the claim is against the individual. It all comes down to where she left the keys - or how she was negligent."
"It's a nasty one as she is potentially personally liable for the £27,000 because the insurer refused to indemnify - possibly with good reason. I don't know that yet as she hasn't come back. It’s potentially a tricky one as she could be liable for the credit hire and also for any personal injury. The MIB (as the insurer of last resort) won't pay out if there was a policy in place - which there was - so there is potentially a claim on the policy. However the insurer will seek to argue she was negligent and hence refuse to indemnify - which means the claim is against the individual. It all comes down to where she left the keys - or how she was negligent."
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