Who pays car accident compensation?

There are many people who make compensation claims associated with car accidents every year, although many people are also unaware of where the compensation money actually comes from. If you are involved in a car accident where another driver is at fault, then the driver who was at fault will hopefully hold insurance. Any compensation will therefore be provided by this insurance company. Although unfortunately there also many drivers on the road who do not hold insurance, this provides a problem for the other party involved within a car accident. A driver not having insurance means that those who have an injured car or those in the car are injured must contact the Motors Insurance Bureau (MIB). This establishment was set up in 1964 with purpose of compensating people involved in accident where one party does not hold insurance. Anybody wishing to claim from this organisation must immediately inform them of the accident and also inform them of the details of the party without insurance. All insurance companies which underwrite motor insurance are obliged to be a member of the MIB; this was made legislation in 1988 by the Roads Traffic Act. The insurance companies which become members of the organisation are also expected to make contributions to help the running costs. A central database is held which records all drivers and cars which are known to hold insurance, all British insured cars which hold insurance are on the database, which is used extensively by the police. Advances in technology have helped the police to catch more and more people who are flaunting the law and avoiding paying for car insurance.
If you are involved in crash in which only one car is involved, for example the car you are travelling with collides with a stationary object; claims can still be made by passengers and also the driver. If insurance is held, any claims will be paid out by the drivers insurance company, although this will impact upon the drivers no claims bonuses which are collected at the end of each years insurance if the driver has no made a claim. Normally the more no claims bonuses an individual holds, the cheaper their insurance will be, the loss of these bonuses will more than likely lead to a more expensive premium the next time the insurance is up for renewal. It must also be considered that when a driver is claiming on their own insurance, an agreed premium often has to be paid. This premium is decided by the driver when the policy is taken out and must be paid towards any claim being made, young drivers often decide to choose a large premium in order to reduce the price of their overall cost of insurance.
Claims which are made for motor insurance are often related to damage to the car or for personal injury claims. Anybody wishing to make a claim is advised to seek legal advice from professionals such a solicitor or claims specialist firm.