Removal of uninsured drivers’ access to property damage compensation
Proposes denying property damage compensation for uninsured road vehicle drivers involved in accidents with other uninsured or untraced drivers.
We are proposing the reintroduction of an exclusion previously removed because of incompatibility with European Union (EU) law, so that uninsured drivers are no longer able to claim compensation for property damage from the Motor Insurers’ Bureau (MIB). Currently, uninsured drivers are able to claim this compensation if involved in an accident with:
- other uninsured drivers
- untraced drivers
The MIB is responsible for compensating drivers involved in an accident with an uninsured or untraced driver. The MIB covers its costs by means of a levy on all motor insurance companies, which might in turn pass this particular cost onto law-abiding premium-paying motorists who do insure their vehicles.
Now the UK is outside the EU we are no longer required to be subject to EU law and can proceed to make this change.