Q&A - Can I be held liable for compensation claim costs if I have changed Insurance Companies since my car accident?

Q: I was involved in a car accident just over two years ago. The road was icy and I was going uphill when the car in front of me suddenly braked. I applied my brakes but due to the ice on the road, my car skidded and I went into the back of the car in front.

My car was a write-off. My insurers eventually paid out and I thought that was the end of it. Since then I have changed insurers. Last week I got a letter from a firm of Solicitors saying they had been engaged by my old Insurers to represent me and that I might have to go to Court. They also sent a list of their fees. I have phoned my current Insurers but they say my current legal cover is not applicable to a case prior to the date I started cover with them. What should I do?

A: I imagine what has happened is that the driver of the car which you crashed into has made a claim for compensation for personal injury against your Insurer (by that I mean the Insurer you were with at the time of your accident.)

Usually when Court proceedings are issued, Insurance companies appoint a firm of solicitors to deal with the claim for them through Court proceedings. Proceedings may have been issued if your former Insurers have not admitted liability for the accident, or if the amount of compensation to be awarded to the Claimant cannot be agreed. So, your Insurers have appointed Solicitors to now act on your behalf. The Solicitor’s fees are covered by your Insurer at the time. There should be nothing at all for you to pay. If you have any concerns, you should contact the Insurance Company you were with at the time to discuss.

Article 28/01/2019