Am I liable for my wife's insurance mistake?

KenCakes

I have a situation where, due to a mistake on her part, my wife thought she was insured to drive a friends car, but wasn't as she's only a named driver on my policy. The car was involved in a minor accident, and now the friend's insurance company (who covered the claim) are seeking to recover their costs from her. Before seeking professional advice, I was hoping somebody would know how this would affect me as her partner as Google isn't helping much. We have a joint account for household bills etc, but most of her money is seperate from mine. I am the main earner in the household and pay for most things directly from my personal account.



We're in England.



Thanks in advance.

[Deleted User]

It'll likely impact your renewal premium.

KenCakes

Thanks ZX81, I understand this, what I am concerned about though is that her friend's insurer is looking to recoup their costs directly from my wife and how that will affect our familiy finances.

[Deleted User]

She will be responsible for making the payment.

Where you and she agree the money comes from is up to you.

lisyloo

Your wife is liable and should pay.
When you renew you’ll need to declare the accident which will increase the premium as she will now be considered higher risk.

You absolutely must declare it.

Aretnap

You are not liable for your wife's debts and your property/earnings could not be seized to pay them. It gets a bit more complicated where property is owned jointly (eg joint accounts, or if the house is in both names). However transferring property from her name to yours at this point in order to avoid paying her debts could expose you to serious consequences and is not to be recommended. If it was a minor accident then thinking in terms of bankruptcy is perhaps a little melodramatic anyway.

Obviously you will have to declare the accident (and any conviction for driving without insurance) at renewal (unless you decide to take her off the policy) and this will likely affect next year's premium for both of you.

KenCakes

Thanks Aretnap, this is exactly the sort of information I was looking for. Money is tight, so if just my wife's income / assets are taken into account, we should hopefully be able to arrange a payment plan. It's a few thousand pounds, that we can ill afford to pay in one go.

MovingForwards

The insurance company will want an income and expenditure list with any instalment offer from your wife; they will be grateful she is offering to refund it as most times it does end up with their solicitors to deal with.

molerat

If the insurer takes it to court and she ends up with a CCJ it could affect your ability to get credit.

agrinnall

molerat wrote: »

If the insurer takes it to court and she ends up with a CCJ it could affect your ability to get credit.

Only if they are financially linked by something such as a joint account.

molerat

agrinnall wrote: »

Only if they are financially linked by something such as a joint account.

KenCakes wrote: »

We have a joint account for household bills etc,

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