The accident management sector comes in for some criticism from both inside the insurance sector and from consumers. There is a fundamental question to be asked since Covid too; in a world of WFH do people in a two car household really need a hire car after an accident? Just adding that option to the drop-down menu on the big three comparison sites could save the public millions on premiums over each passing year.
There is evidence of fraud in the Credit Hire sector too. Aviva noted last year that organised gangs are using repairs and car hire as a means to commit insurance fraud for example. In another case reported by the BBC a credit hire car was provided at a cost of £48,000, but a judge in the case dismissed this claim amount. The question of a vehicle being used for business also arises, and in another case pursued by Keoghs a taxi driver was given a cab at a cost of £258 per day for several months, even though his declared earnings to HMRC from taxi work were just over £8000 a year. The claim was dismissed, reported here on IE mag in 2023.
Good practice in accident claims is the general standard of course, such cases are rare. But the industry risks its reputation if such obvious scams and attempted frauds are constantly reported by the media. There have to be mechanisms and audit trails to stop them happening. Here’s the word;
For over 40 years, accident management companies have been a fundamental part of the UK’s legal structure, yet they often face scepticism online. A small number of negative opinions and experiences create a misleading narrative for non-fault drivers, who are left to make decisions based on incomplete information.
Auto Claims Assist, a leading UK accident management company, is championing an initiative to correct this misleading narrative and ensure consumers are aware of their full legal options.
Addressing Key Concerns
Non-fault drivers typically stumble across two key concerns, which are often linked: inflated hire car rates and the risk of being left with costs to pay, if the at-fault insurer disputes liability.
The company aims to clarify these doubts and provide drivers with the complete picture, empowering them to make an informed decision about their next steps.
Concern 1: Inflated Hire Car Rates
Inflated hire car rates are a valid concern. While some accident management companies may charge higher rates, it’s easy to identify those who don’t. A key indicator is membership in the GTA (General Terms of Agreement). This voluntary protocol, agreed upon by accident management companies and insurers, establishes fair, pre-agreed rates for hire vehicles. This ensures costs are transparent and significantly reduces the likelihood of disputes.
Concern 2: Being Stuck with the Bill
The fear of being liable for costs is a major deterrent for many drivers. To ease this concern, it’s important to work with an accident management company that operates on a contingent liability basis, also known as ‘no win, no fee.’ This arrangement ensures the full cost of the claim is recovered from the at-fault driver’s insurer. In the rare case this isn’t possible, all charges will be written off, provided the non-fault driver cooperates with the claim process and adheres to the terms of their hire agreement.
An Extra Layer of Assurance
Beyond the GTA membership, many accident management companies are also members of the Credit Hire Organisation (CHO). This is the industry’s official trade body which enforces a strict Code of Conduct that ensures its members operate with ethical and transparent practices.
The Better Choice for Non-Fault Drivers
By understanding how accident management companies work and knowing what to look for, drivers can protect their finances, their insurance records, and their peace of mind. Unfortunately, these misconceptions often lead people to claim with their own insurer. This can result in having to pay their policy excess, risking their valuable no-claims bonus, and potentially facing higher premiums in the future.
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