Menacing letter from their insurer after crash

NorthofWatford

Thanks for your help - all good advice.

Decided to go with insurers hire car after speaking to our insurers this morning.

Hopefully everything will go OK............

mattymoo

Article about this in Post Magazine (insurance trade journal) -

Credit hire association hails ruling as "big win" for CHOs

AMA director general said ruling would alters insurer intervention processes, costs and models
Post | 17 Jun 2009 | 15:26
The Accident Managament Association has welcomed the Copley appeal judgement relating to Helphire and KGM, after the judge allowed the credit hire organisation's appeal.
In a note to members, AMA director general Tony Baker cited the judge's conclusion that "it is not unreasonable for a claimant to reject or ignore an offer from a defendant (or his insurers) which does not make clear the cost of hire to the defendant (if free it is the cost incurred by the provider) for the purpose of enabling the claimant to make a realistic comparison whith the cost he is incurring or about to incur."

The judge added: "If a claimant does unreasonably reject a defendant's offer of a replacement car, the claimant is entitled to recover at least the cost which the defendant can show he would reasonably have incurred; but he does not forfeit his damages claim altogether

"The general rule that the claimant can recover the "spot" or market rate of hire for his loss of use claim is upheld, unless and to the extent that a defendant can show that, on the facts of a particular case, a car could have been provided even more cheaply that the "spot" or market rate."

Mr Baker hailed the verdict as a "big win for CHOs that alters insurer intervention processes, costs and models".
Reflecting on what may happen next Mr Baker notes insurers may seek to appeal the judgements in the House of Lords, although this was refused.
He also suggests insurers may start including in any letter to third parties the cost of them hiring a suitable "free" replacement vehicle.
Finally, he comments that claimants should be allowed time and advice to evaluate any offer from a third party insurer; presumably the hire continues as contracted until such time has elapsed so long as it is a reasonable time interval.