Accident damage - sign credit agreement

tadpoleuk

We have been involved in an accident. Our insurance company has had our car picked up and taken away for repair. The repair company has emailed a credit agreement they say we need to sign before they start repairs. The third party's insurance company has already admitted their policy holder is at fault. They drove into the back of us while we were stationary.

Its worded that in the event they cannot claim the costs back from the third party that we agree to be liable for the repairs. Our insurance company have said its a standard form and we have to sign it ??

I thought the point of fully comprehensive insurance meant that we would not be liable for any costs. My partner does not want to sign and I am not sure the best way forward. Any advice please ?


Background:
1. Your motor car has been damaged in the road traffic accident.
TERMS OF AGREEMENT
1. We will perform the repairs on your behalf.
2. Subject to the terms of this Agreement, you will pay us the sum indicated in our estimate or such smaller sum as
may be subsequently estimated and approved by a suitably qualified independent motor engineer instructed by us
to inspect and report on your behalf (together in either case with value added tax).
3. Subject to the overall time limit mentioned below we will defer your obligation to pay us until after the conclusion
of any action to recover the cost of the repairs from the third party. We will in our sole discretion decide when
such conclusion has been reached.
4. You must pay to us the cost of repair (plus value added tax) by a single payment:
(a) Upon conclusion of any action to recover the cost of repair from the third party; or
(b) Upon earlier recovery by you of the cost of repair:
but in any event within 12 months beginning with the date of this Agreement.
5. You must also co-operate with us in the following ways:
(a) In the appointment of a Solicitor nominated by us to act on your behalf in prosecuting a claim for
damages against the third party for the damage to your motor car;
(b) In the prosecution of any claim against the third party.
6. You are free at any time to choose another agent or Solicitor to act on your behalf or to act on your own behalf in
prosecuting a claim against the third party but if you do so the credit provided by us to you will end and we will be
entitled to ask you to pay us immediately, and you will be obliged to do so.
7. Similarly, if you do not co-operate with the nominated agent or Solicitor in prosecuting a claim against the third
party, or any aspect of your claim is in any way fraudulent, the credit provided by us to you will end and we will be
entitled to ask you to pay us immediately, and you will be obliged to do so.
8. At any time after completion by us of the repairs we may assign our rights under this Agreement and/or in any
invoice issued pursuant to it.
Definitions:
“Your motor car” The motor car identified in the client schedule
“The road traffic accident” The accident that you reported as having occurred on the date identified in the
4. You wish to instruct us to perform repairs to your motor car in accordance with the estimate.
2. It appears from the information provided by you to us that the road traffic accident was caused by the negligence
of the third party.
3.
RFL

colino

Phone up, don't email or write, your insurance company and get this sorted. Your insurance company will have the contract with the repairer, not you. What if they find you liable? They couldn't enforce this, "agreement" anyway as it would be the same as giving any Tom, !!!!!! or Harry a blank cheque. Real repairers don't confuse estimates with quotations.

dacouch

colino wrote: »

Phone up, don't email or write, your insurance company and get this sorted. Your insurance company will have the contract with the repairer, not you. What if they find you liable? They couldn't enforce this, "agreement" anyway as it would be the same as giving any Tom, !!!!!! or Harry a blank cheque. Real repairers don't confuse estimates with quotations.

The Insurers will have little involvement, they've sold the case onto another company for a credit hire and credit repair.

The contract the OP's will sign makes them the client of the garage and these contracts can be enforced

w50nky

Get in touch with the third parties insurer and they will sort all your repairs and courtesy car (if applicable). They have allready addmitted liability so should be straightforward.
We were initially put through to one of these repairers and 'twas a nightmare. Went through third parties insurer and all went through without hassle.

eddddy

w50nky wrote: »

Get in touch with the third parties insurer and they will sort all your repairs and courtesy car (if applicable). They have allready addmitted liability so should be straightforward.
We were initially put through to one of these repairers and 'twas a nightmare. Went through third parties insurer and all went through without hassle.

Hi tadpoleuk

Do as w50nky suggests, plus... I would be very tempted to find a repair company myself (who I was satisfied would do a good job), and pass their quote to the 3rd party insurer for approval.

If you let the 3rd party insurer choose one of their own repairers, they will use one that is contracted to do the work at a super-cheap price, and the quality is likely to be poor.

marlot

w50nky wrote: »

Get in touch with the third parties insurer and they will sort all your repairs and courtesy car (if applicable). They have allready addmitted liability so should be straightforward.
We were initially put through to one of these repairers and 'twas a nightmare. Went through third parties insurer and all went through without hassle.

Good advice

colino

OP, can I ask why you bother having insurance other than for its legality? You seem to be in a slam dunk, 100% not to blame situation and you are letting your insurance company do nothing? One phone call and leave it up to them to sort out, it's what you pay them to do.

Quentin

colino wrote: »

OP, can I ask why you bother having insurance other than for its legality? You seem to be in a slam dunk, 100% not to blame situation and you are letting your insurance company do nothing? One phone call and leave it up to them to sort out, it's what you pay them to do.

When you are not to blame for an incident you are better dealing with the third party direct.

And as the OP found out the one call he made to his insurer landed him in all this credit hire/credit repair!!

If you claim off your own policy, then you will have to pay your excess, hire your own car if needed, temporarily lose NCD (if unprotected), have hassle if your renewal becomes due and you want to switch insurers with this reduced NCD, have the hassle of chasing the third party to reclaim all your uninsured losses etc.

But using the third party insurer you have none of these hassles, and will find them more amenable to granting you your right to have your car repaired at your choice of repairer rather than being pushed into using your insurer's "approved" repairer!