Car insurance conflict of interest

choan

I wonder if any Moneysavers in the legal or insurance professions (or anyone who has had a similiar case) have any advice they could offer on this problem:

A friend was recently rear-ended on the street. Her car was written off and she's sustained some personal injuries. The other driver has admitted fault. Only problem is that both she and the other party are insured by the same company. She now feels that they are hustling her for a resolution.
This obviously constitutes a conflict of interest as far as I see it - either way the insurance company is out to save itself as much money as possible.
How are cases like this best handled? Is there some third party that should be requested to resolve the conflict? Or should she just get a good lawyer on the case?

dunstonh

She should refer the case to her legal team (assuming she has legal expenses cover, if not appoint one).

lisyloo

She now feels that they are hustling her for a resolution.

Can you clarify what you mean by this?
Surely she wants this sorted ASAP.

She should refer the case to her legal team

Interesting one.
I'm sure I've seen somewhere in one of my policies that you cannot use the legal insurance against the insurer.
I can't honestly remeber whether this was a car or household policy or which company it was, but I'm sure I read it at some point.

greco_2

Staff in many insurers' claims departments are nowadays targeted with getting claims settled as quickly as possible. That's no reason to be pushed into accepting a quick settlement which may not be in your interests.

If she has personal injuries, she should see a solicitor who will protect her interests and make sure that she receives an appropriate settlement. The threat of this may make the insurers act more reasonably. She's got three years to bring a claim and shouldn't concern herself with the insurers' agenda. If liability is not an issue, she needn't worry about having to pay legal bills.

WestonDave

See an independant solicitor preferably one on the law society personal injury panel - there is normally a box advert in the yellow pages listing all the local firms with PI panel members. If she has a good case re the injuries they will take her on no win no fee, and she can then be certain that the insurers aren't pursuing their own agenda. I know of a number of cases where insurers legal panels have advised people to accept compensation figures below what a decent solicitor would advise, and you have to wonder whether the panels are being pressured by the insurance industry to keep settlements down.

raskazz

There shouldn't be any conflict of interest - in cases like this insurers will assign each party's claim to entirely different units, who will then deal with the claim just like they would if the third party was insured elsewhere.

Oscar_The_Grouch

lisyloo wrote: »

I'm sure I've seen somewhere in one of my policies that you cannot use the legal insurance against the insurer.
I can't honestly remeber whether this was a car or household policy or which company it was, but I'm sure I read it at some point.

The exclusion does not apply in this case; the injured party is taking action against the responsible party and the insurers are meeting their contractual obligations to indemnify.

In short, you are fine to use the cover.