Quick answer
Around one in twenty UK motor insurance claims involves an at-fault driver who is uninsured or who cannot be traced. Without an insurer to pursue, the non-fault driver's only realistic recovery route is the Motor Insurers' Bureau (MIB), the industry-funded body that operates the Uninsured Drivers' Agreement 2017 (UDA) and the Untraced Drivers' Agreement 2017 (UTDA). This post explains how each agreement works, what the differences are, and the strict deadlines that apply.
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Motor Insurers' Bureau (MIB) claims: uninsured drivers, untraced drivers and what to do
Around one in twenty UK motor insurance claims involves an at-fault driver who is uninsured or who cannot be traced. Without an insurer to pursue, the non-fault driver's only realistic recovery route is the Motor Insurers' Bureau (MIB), the industry-funded body that operates the Uninsured Drivers' Agreement 2017 (UDA) and the Untraced Drivers' Agreement 2017 (UTDA). This post explains how each agreement works, what the differences are, and the strict deadlines that apply.
What the MIB is and where it sits
The MIB is a not-for-profit company, funded by levies on every UK motor insurer, that pays compensation in cases where the normal compulsory motor insurance route fails. The MIB does not insure anyone directly; it is the safety net that catches victims of uninsured or untraced drivers. It operates under agreements with the Department for Transport that set out the scope of cover, the procedures and the exclusions.
The current agreements are the Uninsured Drivers' Agreement 2017 and the Untraced Drivers' Agreement 2017, both of which apply to accidents that occurred on or after 1 March 2017. Earlier accidents are governed by the predecessor agreements. The agreements are publicly available on the MIB website.
DETAIL
Section 3 of the walkthrough.
Uninsured Drivers' Agreement 2017 - when the at-fault driver is identified but has no valid insurance
The UDA covers cases where the at-fault driver is identified - name, address, vehicle registration - but turns out to have no valid motor insurance. Driving without insurance is a criminal offence under section 143 of the Road Traffic Act 1988; despite enforcement and ANPR, around 1 in 25 vehicles on UK roads is uninsured at any given time.
The MIB pays compensation for property damage and personal injury, subject to specific exclusions and an excess of £300 for property damage. The claim is made to the MIB, which then pursues the uninsured driver for recovery in its own name. The non-fault driver's role is to cooperate with the MIB's investigation, provide evidence, and accept settlement on the same basis as if a normal insurer were in place.
Untraced Drivers' Agreement 2017 - when the at-fault driver cannot be identified
The UTDA covers cases where the at-fault driver cannot be identified at all. Hit-and-run, where the at-fault driver leaves the scene and is never traced, is the classic example. Where the police are not able to identify the driver despite reasonable efforts, the claim falls under the UTDA.
The UTDA is more restrictive than the UDA. Property damage cover is only available where there has been significant personal injury caused by the same incident. Property damage alone in an untraced case is therefore typically not recoverable through the MIB. Personal injury cover is available, but at a lower level than for an identified-but-uninsured driver.
The key practical differences in cover
Property damage: UDA covers it (subject to a £300 excess). UTDA covers it only where there was significant personal injury in the same incident. Most pure property-damage hit-and-runs do not get MIB property damage cover and the loss falls on the claimant's own insurance.
Personal injury: both agreements cover it. The compensation level under the UDA matches what a normal insurer would pay; under the UTDA the level is generally similar but with some procedural differences and the inability to recover legal costs in the same way.
Deadlines - strict and non-negotiable
The UDA sets a notification deadline of 14 days for personal injury and 7 days for property damage from the date of the accident, where reporting to the police was made. Late notification is excused only in narrow circumstances (incapacity, hospital admission). Missing the notification deadline is the single most common reason MIB claims fail.
The UTDA sets a notification deadline of 14 days for personal injury and 14 days for property damage. The same strict approach applies. Late notification is fatal in most cases. The lesson is to identify the route to the MIB early - within the first 24 hours - and to lodge the notification immediately rather than waiting for the police to confirm the driver cannot be traced.
Required steps before the MIB will accept the claim
Both agreements require the accident to have been reported to the police as soon as reasonably practicable. The CAD or CRIS reference is required as evidence of the report. Both agreements require the claimant to take reasonable steps to identify the at-fault driver - checking ANPR, reviewing CCTV, making enquiries - before the MIB will treat the driver as untraced.
Where the police identify the driver but they have no insurance, the file moves from UTDA to UDA territory and the £300 excess applies. Where the police are unable to identify the driver despite reasonable enquiry, the file stays in UTDA. The transition between the two agreements is sometimes a point of dispute and is handled by the MIB's claims team.
How the claim is made
The claim is made directly to the MIB through its online claims portal or by post. The notification gives the basic facts - date, time, location, parties (where known), vehicles, references, what is being claimed. The MIB acknowledges, opens a file, and assigns a claims handler. Where personal injury is involved, the claim is normally handled through an authorised legal partner; for property damage it can be handled by the claimant or by an accident management partner.
The MIB then investigates, often working with the police on driver-tracing in UTDA cases. Once the position is settled, the MIB makes a settlement offer in the same way as any insurer would. Where the offer is rejected, there is an appeal process built into the agreements and ultimately court proceedings against the MIB itself.
DETAIL
Section 9 of the walkthrough.
When MIB cover does not apply
Several exclusions limit the MIB safety net. Where the claimant knew the at-fault driver was uninsured (for example, a passenger in an uninsured friend's car), cover may be denied. Where the loss was caused by the claimant's own deliberate or criminal conduct, cover is denied. Where the vehicle was being used outside the road network in places not covered by compulsory insurance, the MIB does not pick up the cover.
Where the at-fault driver was insured but the insurer is insolvent, a different mechanism applies - the Financial Services Compensation Scheme picks up the cover for protected policies. The MIB does not normally fill that gap; the FSCS does. Knowing which mechanism applies is the first step to a successful recovery.
Take action
If you have just been in a non-fault collision, the fastest way to protect your claim is to open the file with us inside the first hour. We dispatch recovery, lodge the relevant CCTV requests inside the retention window, and notify the third-party insurer for you.
