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What happens if the third party is not insured or they refuse to pay up?

Using the insurer of last resort: the Motor Insurers' Bureau

If the foreign defendant (or their insurers) does not respond to your claim or is not insured then you are entitled to present your claim to the UK based Motor Insurers' Bureau who act as insurers of last resort and are legally responsible to meet your claim under the under the 5th European Motor Directive.

Yes - it's that simple.

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