If you’ve been injured in a car accident, you might be wondering who actually pays out the personal injury compensation. Does it come from the driver, their insurer, or somewhere else entirely?
In this guide, we’ll explain who pays personal injury compensation after a car accident in the UK, whether the driver is insured, uninsured, or unknown. We’ll also explain who typically pays compensation, when claims are passed to insurers, and what happens if fault for the car crash is shared.
If you’d like free advice on claiming car accident injury compensation, call our team today on 0800 6524 881.
Who Pays For Personal Injuries In Most Car Accidents?
In most car accident claims, the at-fault driver’s insurance company pays the personal injury compensation. This is because all drivers in the UK are legally required to have at least third-party insurance to cover personal injuries or damage caused to the other driver’s car or property.
When a claim is made, your solicitor will usually send two copies of a Letter of Claim to the other driver. They are then expected to pass a copy to their insurer within 7 days.
Once the insurer receives the letter, they will typically take over the handling of the car accident claim. The driver may not be involved beyond this point.
Who Pays Compensation If The Other Driver Was Uninsured Or Can’t Be Traced?
If the driver who caused the car accident was uninsured or left the scene without being identified, compensation can still be claimed through the Motor Insurers’ Bureau (MIB).
The MIB is funded by UK insurers and exists to compensate people injured by:
- Uninsured drivers, or
- Untraced drivers (such as in hit-and-run accidents).
To make a claim, you’ll usually need to:
- Report the accident to the police promptly.
- Provide evidence that the other driver was at fault.
- Show proof of your injuries and financial losses.
If the MIB accepts your claim, it will assess your case and pay compensation, just as a standard insurer would.
Can You Sue The Driver Directly For Compensation?
In some cases (typically where the driver’s uninsured) it’s possible to claim directly from the driver if they have enough assets to cover a payout. However, this is rare in practice.
Many uninsured drivers don’t have the financial means to pay compensation, and enforcing a court judgment can be expensive, time-consuming, and potentially unsuccessful.
For that reason, most people in this situation pursue compensation through the MIB.
Who Pays Compensation If I Was Partly To Blame?
If you were partly at fault for the car accident, you can usually still claim but your compensation may be reduced. This is known as contributory negligence.
In these cases, the other driver’s insurer will still usually pay your compensation but the amount will be reduced in line with your share of responsibility. For example, if you were found to be 25% to blame and the other driver 75%, you would receive 75% of the compensation awarded.
This is because claims are still made against the at-fault driver, and their insurer covers their liability, even when fault is shared.
A No Win No Fee solicitor on our team can help assess whether fault is being fairly assigned and can challenge any unfair reductions.
Will My Own Car Insurance Company Pay Me Compensation For Personal Injury?
Usually, your own car insurance company will not pay out compensation for personal injury if you were not at fault. Compensation typically comes from the at-fault driver’s insurer or the MIB.
However, your car insurance coverage might help with:
- Vehicle repairs if you have comprehensive cover.
- Legal expenses if you have motor legal protection.
- Personal accident cover, if included in your policy (usually for fixed-sum payouts after serious injuries or death).
It’s worth checking your policy documents to see what cover you have.
Do I Need A Solicitor To Claim Car Accident Injury Compensation?
You’re not legally required to use a solicitor to claim car accident injury compensation, but it’s highly recommended, especially when dealing with insurers or the MIB.
A personal injury solicitor can:
- Gather the right evidence and medical reports.
- Prove who was at fault for the car accident.
- Maximise your compensation by including all losses (such as future care or lost earnings).
- Handle negotiations with insurers or the MIB on your behalf.
- Ensure your case is filed within the three-year time limit.
Most claims we handle are made on a No Win No Fee basis, so there’s no upfront cost and no legal fees unless your claim succeeds.
Is There A Time Limit For Car Accident Personal Injury Claims?
Yes, in most cases, you’ll have three years from the date of the accident (or the date you became aware your injury resulted from the car accident) to begin your claim.
However, exceptions may apply if:
- The person injured is a child under the age of 18 years. The three-year limit starts from their 18th birthday.
- The injured person lacks mental capacity. There may be no time limit unless they recover capacity.
To avoid missing deadlines or losing evidence, it’s best to begin your claim as soon as possible.
Speak With Us About Who Pays Compensation After A Car Accident
If you’ve been injured in a car accident and are unsure who’s responsible for paying personal injury compensation, we’re here to help.
Whether the other driver was insured, uninsured, or unknown, call us today on 0800 6524 881 for a free consultation. A claims advisor will assess your situation and explain your options.
Alternatively, use our live chat or fill out a callback form on this page.