Bee: um if you don't have insurance at all then your car could get stolen or written off and that's the end of that...
Insurance is there for a reason - I have always had FULL car insurance on all cars. to look after my car as well as pay for any damage to others cars...
but the insurance companies should sort this out between themselves... My wife backed into someone else and caused damage to their car - they should be able to get that fixed by their insurance company without requiring me to initiate things...
Otherwise I can just ignore it and wait for it to go away...
The law should protect the people and in this case it just doesn't...
You don't seem to understand 3rd party insurance. The person you/ wife hit has 3rd party as you stated. This will cover damage to other vehicles/property that they hit. Their insurance does not cover for acting when they are hit, that is YOUR responsibility either directly or through your insurance company.
If they take you to Court it is very likely to cost you more as they may well have the costs of taking the action awarded against you. Ignore it and you are a irresponsible motorist and.....