Do I have to pay driver after accident?

In October last year, I was riding to work when I had an accident with a car on a roundabout. I agreed with my solicitor that I would be happy to take 50% of the blame but a problem has come up as my insurer is refusing to pay the other driver for his whiplash and damage to the car. This is because it has transpired that my insurance policy is third party and social only, meaning it did not cover commuting. My insurer is saying I have to pay the other driver’s compensation as I misled them. Is this right? Andrew Thompson, Barking

AMotor insurance policies are policies of good faith, meaning both parties in the contract have to disclose the correct required information needed to create a policy.

If it is the case that you were commuting on a non-commuting policy, then your insurer is likely to deal with your opponent’s claim as if your insurance policy never existed at all, which in very serious cases it can. For example, the non-disclosure of a drink drive offence. In your case, the difference would likely have been a higher insurance premium had you disclosed that you intended to commute on your bike, as opposed to the insurer not offering a policy.

Your insurer should compensate the other driver, but unfortunately they are within their rights to make you repay them for your share (50%) of the losses of the third party.

‘The insurer can act as if the policy never existed’