Car insurance, are they the biggest fraudsters

motorguy

boatman wrote: »

https://www.theguardian.com/money/2016/mar/28/car-insurance-and-credit-hire-agencies

http://www.honestjohn.co.uk/faq/what-is-credit-hire/

The whole arrangement is based on hiring a car to someone who accepts they don't have the money right now, they give you the hire car and claim the money from the insurance later. They may in fact have the money and would be quite happy to sort a hire car out themselves, but these agreements are almost forced on people the day after the accident, even if the accident damaged car is perfectly driveable.

So many holes in this you could drive a bus through...


Firstly, you said "hire" companies in the context of car hire companies.


Secondly, the example you linked to is a third party credit hire company. A different fish altogether than getting a hire car from your insurer until your car is repaired.


Also, you said "in many cases" - of the hundreds of thousands of claims per year, what percentage does this make up?

boatman

motorguy wrote: »

So many holes in this you could drive a bus through...

So you agree it happens?

"CHCs emerged in the 1980s and pay insurers and brokers large referral fees to manage no-fault claims. Their profits are made from arranging repairs and replacement cars at often greatly inflated cost, then demanding the money from the third-party insurer."

The credit hire company pay the insurance company, just one big merry go round, that we all pay for.

motorguy

boatman wrote: »

https://www.theguardian.com/money/2010/feb/06/beware-claims-management-companies

"Many claims companies auction details of customers and their claims to specialist solicitors, earning up to £750 for each case that comes their way. The individuals involved are unaware of this and will not even have a say over which lawyer takes on their case."

Is it not entirely possible that insurance companies are paid to give accident details to claim companies?

When you phone an insurance company to report an accident, they will re-direct your call to 'their' claims handler, do you think they do this for free?

My query was in relation to "Who owns the claim management companies, I would suggest the insurance companies."


You've just shown that the insurance companies get a referral fee, NOT that the claims management companies are owned by the insurance companies.

boatman

In my case it would appear the insurance company were happy to pay over £2000 for the claim, but would only pay £1200 to write off the vehicle. Why would they even contemplate repairing the vehicle if they could just get away with writing it off?

motorguy

boatman wrote: »

So you agree it happens?

"CHCs emerged in the 1980s and pay insurers and brokers large referral fees to manage no-fault claims. Their profits are made from arranging repairs and replacement cars at often greatly inflated cost, then demanding the money from the third-party insurer."

The credit hire company pay the insurance company, just one big merry go round, that we all pay for.

Oh it happens, no doubt. However what percentage of claims does it impact, that's what I've asked you?


The credit hire company pay "an" insurance company for referrals so they can prospectively claim off a different insurance company (the person whos at fault).


They DONT pay for a referral to claim off the insurance company they've got the referral from do they?

motorguy

boatman wrote: »

In my case it would appear the insurance company were happy to pay over £2000 for the claim, but would only pay £1200 to write off the vehicle. Why would they even contemplate repairing the vehicle if they could just get away with writing it off?

Exactly. And your point being?


If its uneconomical to repair they write it off.


Simples.


Why would they lay out £2,000 repairs on a car worth £1200?


Would you?

boatman

motorguy wrote: »

My query was in relation to "Who owns the claim management companies, I would suggest the insurance companies."


You've just shown that the insurance companies get a referral fee, NOT that the claims management companies are owned by the insurance companies.

You wanted evidence for many things. It doesn't mean I'm wrong if I don't have that particular detail to hand, but again its perfectly possible, as in the banks owning the PPI claim companies.

motorguy

boatman wrote: »

You wanted evidence for many things. It doesn't mean I'm wrong if I don't have that particular detail to hand, but again its perfectly possible, as in the banks owning the PPI claim companies.

And you've insinuated a whole host of things with very little evidence to back it up - the most banal being that insurance companies jack up claim costs against themselves to make money?

boatman

The insurance companies claim the premiums are just the way it is, and yet there are various articles and anecdotal evidence to suggest what may or may not be going on. I am suggesting that they are very much a part of the game we all have to play. I don't believe its beyond the realms of possibility that what i have said is correct. You are right in so much that I don't have all the answers, but I think its perfectly possible. You only have to look at the games the banks have been playing over the years, I doubt the insurance market are clean as a whistle.

motorguy

boatman wrote: »

The insurance companies claim the premiums are just the way it is, and yet there are various articles and anecdotal evidence to suggest what may or may not be going on. I am suggesting that they are very much a part of the game we all have to play. I don't believe its beyond the realms of possibility that what i have said is correct. You are right in so much that I don't have all the answers, but I think its perfectly possible..

That insurance companies inflate the cost of a claim against themselves??