Motor legal expenses

mikejay

I took out motor legal cover with my insurance last November and was hit by another car in June. The legal cover have been dealing with my claim since the accident and we are waiting for court dates. But my policy has expired now and I have went with another insurance company. Will I now have to pay my legal fees for an ongoing claim? My policy was fully paid annually.

Aretnap

No, the policy you had at the time of the incident will continue to cover the costs of the claim relating to that incident.

Obviously it won't cover costs relating to future incidents - but your new policy will. 

mikejay

Thanks I thought that just I had an email from insurance company saying your car insurance has ended this includes your motor legal expenses. Have took out cover with another company along with motor legal cover. As previous insurer put my insurance up by over £100 for a non fault claim that cost my policy £0 and using comparison sites got better cover near half the price of the renewal👍

Sandtree

Why is it going to court? Have your insurers recovered their outlay or did you go via an accident management company?

“Fault” in insurance terms is about outlay and the fact you are going to court could mean its still recorded as a fault claim because its not yet settled hence the pricing difference and a potential problem for you with your new insurers

mikejay

Sorry I did not realise anyone had commented on this. Case is still on going with estimate court dates 1st week 2022. Because the guy who hit us his insurance won't pay for the courtesy car Hastings sent using enterprise. Turns out despite having fully comp insurance with courtesy car cover unbeknown to me enterprise who dealt with the claim gave me a credit hire car. Hastings don't want to know saying enterprise deal with it enterprise told me if I gave permission to take to court it would not cost me anything even if they lost. But yet it is my legal cover dealing with it all and me having to prove every penny and bank statements to the courts. Along with having to be taken to court. I am in the same situation as this guy https://www.falmouthpacket.co.uk/news/18643161.hastings-direct-policy-holder-charged-13-000-courtesy-car/

Sandtree

It isnt your legal expenses insurance covering it... accident management companies/credit hire providers pay a healthy referral commission and therefore a host of companies will pass your details onto such companies for free (to you). The basic principle of these companies is that as long as you don't blatantly lie to them and support their recovery efforts it will never cost you anything however it can cost you dearly should you not support them.

As the article you link to points out their costs are often high and certainly very high compared to what a large insurer can negotiate and hence they want bank statements and such to argue why you had to rely on credit hire rather than hiring a car out of your own pocket. 

The arguments around credit hire are fairly interesting, to a certain type of person, but this is 95% your hire company -v- the third party insurer. Most hire agreement have obtuse looking wording saying that your liability, in the situation of your full cooperation, is limited to the amount the court judges the third party is liable. IE the TP pays off what the judge says and the rest is written off.

mikejay

The thing is I paid for a Hastings policy fully comp with courtesy car cover. So thought I was getting a courtesy car just like the guy in the news article. Hastings have told him he would not have been entitled to a courtesy car due to his car being written off and that is why he had a chc car. So why was I given a credit hire car then my car was repaired and very badly at that. I am fully cooperating with enterprise and it is my legal assistance that has been dealing with the case as i have not heard a thing from enterprise since November last year. 

Sandtree

Unfortunately this is one of those lessons on reading things before signing them as you will have a signed a credit agreement with the company. 

A courtesy car, in the traditional sense (and as seems to be the case with Hastings), is a very small 3 door car that the garage themselves provide for you subject to availability... there is no direct payment to the garage for having supplied this but its effectively built into the hourly rate in theory. Hence you dont get a courtesy car for a total loss or stolen car because the garage wont be paid any labour.

Clearly it should have been explained to you why the referral was going to credit hire (ignoring the commission they get paid) but generally its done under the mask of ensuring you get an appropriate vehicle for your needs rather than a tiny thing and as an innocent party you shouldnt be forced to make do with the tiny car.

jimbo6977

Sandtree said:

The arguments around credit hire are fairly interesting, to a certain type of person,