Accident car hire charges

a6915137

Hi All

My wife had an accident couple of months back. The policy is on my name and she is the second driver. The accident was not her fault. I have used an accident management company called “direct accident”. The company supplied a hiring car, also the third party paid me the value of the car because if was economically visible to repair it. Last week I received a letter from the solicitor asking me to send them my bank statement and payslips. I had a call with the solicitor asking why I have to supply this. They said that to show that I didn’t have enough fund to hire car (this is called impecuniosity). But if the bank statement shows that I did have enough fund then I have to pay the hiring car charges (my wife had the car for nearly three month! they only collect it after I have received the cheque). I had no idea about this, I haven’t been told so by direct accident. Actually, I don’t have any big amount of money anyway, just my salary that go into my bank account and used to pay bills and so on.

So how do they decide that I had enough fund, I mean is there any particular amount of saving or salary you have to have.

lisyloo

Which solicitor is this from?
If this is from the other party then call direct accident for advice.
Don’t engage with the other party or their solicitor or their insurer without taking advice.

lopsyfa

Correct me if I am wrong but I think what has happened is the OP took the hire charge at high rate from direct accident and the cost of hire (for 3 months) is very extortionate and direct accident is now claiming this amount from the third party. The third party solicitor is now trying to establish whether the OP could have minimized the car hiring cost by paying from his pocket instead of using direct accident car hire.

There was a case from here sometimes where the cost of hire by the accident management company could have bought a brand new car (VW Passat) and the poster was asked to pay the difference.

MovingForwards

You have a credit hire vehicle which is massively overpriced compared to spot hire (where you pay the hire).

The solicitors want your bank statements to show you were unable to afford to hire a car yourself.

What normally happens in these circumstances, if you were able to fund a hire vehicle, is the credit hire company recover the spot hire rates and not credit hire rates.

Next time, read the small print on anything you sign as you may not be so lucky to have an escape route!

a6915137

Hi all, thanks for your comment,

it is my solicitor who asking for this bank statements. And I think he is trying to ask the third party to pay for that. But they have never explain to that I could be liable to pay this. I have even asked them at some point (over the phone) this because the car stayed with me for long time. they say no the cost should be recovered from the third party. Now they are saying different thing. according to the document I have seen when I get the car, they were hiring the car for £100 / day. I know it is crazy rate, but I have no fault of this. this insurance companies playing the game.

I think I have no other route that supply the document and hope for the best, I have no saving anyway.

All Best

lisyloo

Agreed, but when you’re up against it in a problem situation then not everyone is as capable as you of questioning or finding an alternative.
I agree with your point but some people simply aren’t that capable.
I have older relatives like that and there’s no point shouting at them if they simply don’t have that level of capability.
My older relatives would think that’s what they were meant to do if someone told them so.

stripeyfox

This is a totally new one on me. But I'm interested to learn. So why exactly would one use the Accident Management company rather than their own insurance company? Who determines in the first instance that it is "not your fault"? I know that some cases are clear cut, but surely the individual doesn't decide this?

If someone shunts me, I always thought you exchange details, no one admits liability and you let your insurance company sort it out?

Quentin

No need to use your own insurer for any claim where a liable third party is involved

(And you cannot if your policy is third party only as opposed to comprehensive)

Always better to use the third party insurer if they will play ball ( no excess to pay and have to reclaim/replacement car provided throughout/easier to use your own choice of repairer/no impact on any unprotected NCD etc)

And if the third party insurer won't help despite liability being clear cut then use an accident management company