non fault claim - how to proceed

happypie

hi guys,
yesterday i was involved in an car accident.
the other driver was at fault. he took reverse (in one way lane in parking lot at super market) without looking back and hit my car.
he asked me not to contact police and insurance and said he will pay for fix - i agreed to it.
however today he denied paying me the repair cost. he wants me to come to at 'his' garage which is 30 mins drive from my area and get car fixed there or get money from insurance.
now i contacted my insurance, they have referred me to a 3rd party company. this 3rd party company has generated a 'credit protection insurance' for me, ready to instruct a garage to undertake repair to my vehicle and will recover cost from insurance company of driver at fault - if he denies liability and case goes to dispute then they will still pay for repairs (if i have understood them correctly on phone). i even don't have to pay my insurance excess as this company is independent of my insurance company.

i am just confused why this 3rd party company is doing all of that without taking any money from me? is there some catch here? does their business only dependent on other person admitting liability and paying more money then actually spent on repairs?
does 'credit protection insurance' affects my credit score.

is there any risk with all of this?
pls help.

just to add more details, damage is minor and two garages have quoted in range of 400 and 500 pounds.

Shaun_of_the_Dead

It'll cost a lot more than £500 when you include the over priced car they'll throw in.

If the other driver denies liability and says you ran into the back of him it's going to get very expensive for you.

happypie

Shaun_of_the_Dead wrote: »

It'll cost a lot more than £500 when you include the over priced car they'll throw in.

If the other driver denies liability and says you ran into the back of him it's going to get very expensive for you.

just to clarify.
i have gone to these two garages myself.
the company's garage haven't yet seen the car.

how can i hit side of my car to his back? the damage is left side of my car and back side of his car.
we both entered parking lot, he first and then i followed. he took left (for ground floor parking), i wanted to go straight (for 1st floor parking). then a car came in front of me wanting to get out of parking lot so i stopped and gave him way. suddenly the first driver decided to take reverse (probably thought of going straight too as didn't see empty parking when he took left). and then he bumped into my car.

however that's what i am trying to understand because they didn't say anything about me paying any money at any stage, unless i didn't tell truth (but i did tell them exactly what had happened).
when it can get expensive for me? and what are the risks?

happypie

also should i now contact police?

Shaun_of_the_Dead

happypie wrote: »

just to clarify.
i have gone to these two garages myself.
the company's garage haven't yet seen the car.

how can i hit side of my car to his back? the damage is left side of my car and back side of his car.
we both entered parking lot, he first and then i followed. he took left (for ground floor parking), i wanted to go straight (for 1st floor parking). then a car came in front of me wanting to get out of parking lot so i stopped and gave him way. suddenly the first driver decided to take reverse (probably thought of going straight too as didn't see empty parking when he took left). and then he bumped into my car.

however that's what i am trying to understand because they didn't say anything about me paying any money at any stage, unless i didn't tell truth (but i did tell them exactly what had happened).
when it can get expensive for me? and what are the risks?

When the third party doesn't accept liability.

happypie wrote: »

also should i now contact police?

No.

happypie

Shaun_of_the_Dead wrote: »

When the third party doesn't accept liability.

i have a feeling that he won't accept liability.

i asked this 3rd party company about it that what happens if he denies liability. the company said they will ask for whatever proof i have like pics, parking video footage etc. i took picture of his number plate and damage of my car but honestly none that can prove what exactly happened, i mean a picture can't really prove what really happened anyway.
i checked at superstore about cctv footage to which lady first said that cctv isn't working and then said another company called parking eye manages parking cctv so i should contact them. on parking eye website it appears that they give videos to police only for certain crime. it seems unlikely that they will go to any length to get video for a minor accident.

and this 3rd party company also said that they would still pay for repairs (or at least that's what i have understood) and i wouldn't need to pay for anything in all cases. which is why i am so confused how this can possibly be true. i think i should confirm this again.

Shaun_of_the_Dead

happypie wrote: »

i have a feeling that he won't accept liability.

i asked this 3rd party company about it that what happens if he denies liability. the company said they will ask for whatever proof i have like pics, parking video footage etc. i took picture of his number plate and damage of my car but honestly none that can prove what exactly happened, i mean a picture can't really prove what really happened anyway.
i checked at superstore about cctv footage to which lady first said that cctv isn't working and then said another company called parking eye manages parking cctv so i should contact them. on parking eye website it appears that they give videos to police only for certain crime. it seems unlikely that they will go to any length to get video for a minor accident.

and this 3rd party company also said that they would still pay for repairs (or at least that's what i have understood) and i wouldn't need to pay for anything in all cases. which is why i am so confused how this can possibly be true. i think i should confirm this again.

I think you should as someone will have to pay.

Cap2019

Don't panic - it is pretty standard for insurance companies to refer you to accident management companies when they believe you are not at fault for an accident. In theory, the AMC will recover any costs incurred from the at fault (third) party. I had the same when someone drove into the side of me earlier this year and despite all the scaremongering online the AMC had repaired and returned my car within 2 weeks (looking as good as new), recovered all costs within 60 days and not affected my NCD.

The biggest catch here, as mentioned above, is the hire car they will provide you with whilst your car is being repaired. They are notorious for providing expensive replacement vehicles - at a cost of up to £400/day in extreme cases - which the third party insurance can refuse to pay for on the basis that you haven't mitigated your losses by finding a cheaper car elsewhere. I gave my hire car back after 5 days (£88/day brand new Astra) because of this so didn't rack up a large bill. Imagine a £200/day Audi type car for a month or two. Costs can easily exceed £10,000.

Mitigate your losses and be honest when providing your insurance company with details of the incident and try not to worry in the mean time. Easier said than done I know but do your best. Wishing you well with this case.


EDIT: Regarding who will pay for your repairs should the third party deny liability I would contact your insurer, not the AMC. You pay for your insurance for a reason.