UPDATE......Use third parties insurance company or my solicitor?

JPS29

Hi.
I'm after a bit of advice please.
I have been involved in a non fault accident where the third party has pulled out of a side road into my path resulting in an unavoidable crash. As this happened st a busy time there were in dependant witnesses anyway but the insurance company have been fair and admitted fault not that it could have been disputed but I suppose it could have been dragged out.
When I rang the insurance company to check the driver was insured they said as he'd not reported the claim at that time there was nothing they could do but would chase it.
In the meantime I rang a solicitor who I have used before enquiring about a hire car as mine is unroadworthy .
Next day TPI ring me admitting liability and asking if I would
Let them uplift and assess my car and place me in hire provided by them. I'm a reasonable person and didn't see the point in using the solicitor while the insurer was playing ball and landing them
WIth storage recovery hire charges and solicitor fees so agreed. The car has been uplifted and I'm in hire
Awaiting results of the assessment .
This is where my dilemma comes in. He then passed me onto his pi colleague who asked had I instructed a solicitor. I told him no but had made an initial enquiry by phone but signed nor recd any docs.
He said he could handle the claim in house and would keep in contact every couple of weeks to see how I was recovering and once I had fully recovered to pre accident levels settle the claim . My injuries are typical of whiplash but I also have bruising and marks ironically caused by the seatbelt and my shoulder is not right. He suggested I should go to my gp and if need be have some physio which again he will arrange and pay for.
The solicitor has been in touch advising me that I would be better going with them as due to the fast track process this would be settled within I think it was 3 months as long as the medical report gives and indication of when I will fully recover. And as liability had been admitted once I have an initial medical with them they will advance me £1500 to be deducted from my compensation.
I am self employed and will find it hard to prove my earnings due to only recently setting up so in need some assistance ASAP as I'm unable to work at minute and prob for a week I would imagine so I have no money coming in .
I don't want to line the pockets of a solicitor who will probable a few grand off this but when I spoke to the insurance he said the solicitor won't get me any more as they all use a set of guidelines backed by court to determine awards. If this is the case what is the benefit of me using the insurance company to ME over my solicitor who will be suing the same guidelines but get me an interim payment in under 3 weeks where I could theoretically be waiting 12 months of the insurance.
Appreciate any input

InsideInsurance

This is a hornets nest and depending on where someones background is from will dictate where they recommend.

Pro insurers - solicitors costs are high (though not as much as they were pre april last year) and so there is an incentive for them to block them out by being reasonable to you. Even if they over pay you they would overall be better off because of having saved themselves solicitors fees

Pro solicitors - insurers are money grabbing crooks who will always do the absolute minimum to meet the claim and always undervalue all claims because you dont know any better. A solicitor is a trained professional and will be much better at arguing the case for you. Quantum is as hard, if not harder, to deal with as liability.


Its up to you which set of arguments you want to believe. If you do go down the solicitor route certainly make sure you understand what, if any, percentage of your award they will keep. Since April they've been allowed to keep up to 25% of your general damages.

JPS29

Thanks for the reply.
From my initial talks with the solicitor it was no win no fee keep 100 percent but I will double check.
I would have thought when I told the insurers this they would have made the same offer of An advance backed by a medical if needed as I seen it like you said in the long run if saving them a small fortune but this was not entertained

JPS29

So back to my dilemma. What benefit is there in me using the insurance company direct instead of my solicitor?
Apart from I feel it may be more morally correct but at the detriment of taking longer to settle and the interim from the solicitor I can use now...
Then morally I have already helped them save a few grand with no recovery storage inflated hire etc

JPS29

from the lack of replies should I assume there is no benefit to me in using the insurers, as I cant see any at them minute.....

InsideInsurance

As per my original post, the benefits they would quote is the whole process being quicker and easier because you arent having to have everything relayed via the solicitor. They fund everything up front rather than you having to pay and reclaim (though the advance offered by the solicitors offsets this). Some claim to be slightly more generous in settlements to direct claimants but then on here you will find people saying the settlements are lower.

The main benefit since apr last year is the fact you keep all the award but if your solicitors are in the small minority that dont either keep any of the reward or stretch things to increase their fees then there isnt the greatest direct difference to you.

Obv bigger picture, everyone adding solicitors costs to claims inflates everyones premiums but 1 person and 1 claim wont change the industry

vaio

it's down to trust....do you/should you trust the insurers to correctly value your injury/losses? Or would your own solicitor be better for that?

As you have no income at the moment, one little test to see how trustworthy/helpful the insurer is might be to ask them for an interim payment similar to what your solicitor is offering and see what they say.

The recent self employment complicates matters as it's going to be difficult to prove your loss of earnings although presumably you will have details of work not done so that will form some basis.

Remember, no win no fee no longer means your solicitor only charges the at fault party.

As Inside says they are now allowed to have up to 25% of your injury compensation but there are firms who take less and some who take nothing https://www.google.co.uk/#cr=countryUK|countryGB&q=personal+injury+lawyer+n o+deduction&tbs=ctr:countryUK|countryGB

JPS29

@insideinsurance thanks for a very balanced reply and vaio thanks for your reply too, very good suggestion.
It is still early days I think the way I may have a reasonable judgement on the insurer is how they play it with my car. In my eyes it will be a total loss CAT C but I will ask for it back anyway to repair myself as I had had it for A WEEK! and know the history of the car for the last 6 years.
Regarding proving work not done, again a very hard one. I have a garage that mainly does tyres although I also buy and sell vans sporadically operating as a legitimate motor trader. I explained this to the claims handler and said some weeks I may make £1300 ie with van sales, others £400 so hard to judge but I gave him a reasonable and conservative estimate that a week out of work to me would be worth £500. I didn't want to take the urine and go for my best weeks take and as my rent on the unit im in is £125 a week this only leaves £375 on top of that.
I will wait for the decision on the car then the claims handler from their PI team said he will ring me next week anyway.
Im going to take him up on the physio offer as my shoulder is definitiely not right, not broken but not right, and if I don't end up going with him Im sure the solicitors will have arrangements with a physio anyway. I will put my cards on the table again and tell him this is hurting me financially now as well as physically and I will need an interim payment to see me through my hardship now, if he cant help then ill tell him I will have to instruct a solicitor
I wont hit and run on this thread so as soon as I have the discussion with the insurer ill report back just so you know how it ended.
Thanks again appreciate the time to reply

JPS29

UPDATE....
My solicitor has rang me again asking am I sure that I don't want to use them, they can gtee me the payment within 21 days sort out physio with no outlay to me etc so while I had them on the phone I asked them to confirm that they didn't charge a fee on my award. They were very sneaky when they told me last time that I would receive 100%. They still stand by this BUT this was because they had checked my insurance and I have legal expense cover so they claim their 25% (ta dah...) from them.
Should this have me concerned if I do use them? I know that the claim has been logged with the database of claims anyway as the insurer asked for my NI number and told me he would be logging it as a compensation claim but will this be any detriment to me with regards to future premiums as I have used the legal expenses cover

JPS29

Final update. Looks like it is best to go with solicitors after all. I've just been shafted on on the pav of my car. Asked the girl
Politely could she do any better and I was only talking £300 as I'd had the car a week but she had found one similar local with half the miles of mine for same price. I know all the service history of mine buying it direct from the last owner . Take into account the fact I saved them storage recovery hire accident management fees etc. Wouldn't budge. Told her it win
Cost her company more in the long term through my pi claim. Cut me shirt mid sentence telling me I couldn't increase my injury payments to compensate for the valuation of the car. When she let me finish I told her uptil the point I found out they are inflexible and pay the lowest of the low I was willing to deal direct with them and not a solicitor. It won't cost her any extra but as I've just has an X-ray for my shoulder and doc thinks something is wrong i can see it costing her employer apt more now I'll be using a solicitor.

vaio

If you feel they are under valuing the car then reject the offer and make the claim off your own policy, then the valuation will be in line with the FOS rules.

Have a read of this for an explanation and guidance http://www.financial-ombudsman.org.u...valuation.html

Remember you should get the retail/dealer figure which should be enough to go buy a replacement from a dealer.