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Claim from 'at fault' car accident party's insurance company

ianG
ianG Posts: 90 Forumite
Part of the Furniture 10 Posts
A car accident that happened on 18th Feb 2020 where I was at no fault (in stationary traffic when hit from behind) and my insurance company has since that date confirmed the case closed by letter at the end of that year (2020).

However, today, the company that provided a replacement vehicle while mine was being repaired contacted me with a series of questions for which they expect answers for their lawyers as the party at fault solicitors are questioning the choice of vehicle I was given.

The gist of this is regarding the vehicle provided: such as, did I need that specification?, was I offered a choice? etc. The recollection from my call was that I asked when reporting this accident if I simply asked if I

would get a similar vehicle (hybrid/automatic) and they confirmed that a similar specification vehicle would be provided
.

I have all the paperwork from the car hire company and it shows £0.00 cost to me.

My concern is regarding speaking or communicating with the hire company when the dispute is between them and the at fault party insurance company.

Any thoughts please?

Thanks.

«1

Comments

  • If your insurance company dealt with it all, I would direct the car hire company put all correspondence though them.
    Let's Be Careful Out There
  • Grey_Critic
    Grey_Critic Posts: 1,354 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Combo Breaker
    edited 5 July 2023 pm31 6:34PM
    Refer them to the insurance company. DO NOT enter into any other correspondence.
  • ontheroad1970
    ontheroad1970 Posts: 1,657 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    This isn't unusual questioning, you are expected to mitigate your costs, and the use of credit hire is often queried.  As stated, pass them on to your insurer at the time of the incident.  You may (unlikely) have to give evidence possibly even in court to give evidence of the requirement.  Your insurer's legal team would advise you if this is necessary.
  • DullGreyGuy
    DullGreyGuy Posts: 15,678 Forumite
    10,000 Posts Second Anniversary Name Dropper
    If your insurance company dealt with it all, I would direct the car hire company put all correspondence though them.
    Credit hire isnt covered by your insurance and your insurers will want nothing to do with it.

    Refer them to the insurance company. DO NOT enter into any other correspondence.
    As above, this is not correct. They have to enter into correspondence with their credit hire company or they will become personally liable for the full cost of the hire car they had; its one of the key conditions of getting the credit in the first place.

    ianG said:
    My concern is regarding speaking or communicating with the hire company when the dispute is between them and the at fault party insurance company.

    Any thoughts please?
    Read the credit agreement you signed with them, normally its the back of the handover doc you signed when you were first given the car. Its almost 100% certain that failure to support their attempts to recover their outlay from the third party insurer will make you fully liable for the cost. 

    It sounds like the third party insurers are saying you didnt fulfill your legal obligation to reasonably mitigate your losses. This will typically cover saying that you've hired a £200 a day car, could you have lived with a more basic model, smaller car etc for £100/day instead? Credit hire can be double the price of a hire car (or more) and so they'll also challenge if you had to take the car on credit rather than afford to pay it for yourself. There can also be a dispute on the period you had it, at times drivable cars are taken in for inspection and then sit there for 6 weeks whilst parts are ordered all the time you're in a £200/day car whereas you could have continued to use your damaged car until the parts were ready.

    If you do support the credit hire company then in almost all cases, other than fraud, if they dont recover the whole amount the shortfall is written off. 
  • ianG
    ianG Posts: 90 Forumite
    Part of the Furniture 10 Posts
    If your insurance company dealt with it all, I would direct the car hire company put all correspondence though them.
    Credit hire isnt covered by your insurance and your insurers will want nothing to do with it.

    Refer them to the insurance company. DO NOT enter into any other correspondence.
    As above, this is not correct. They have to enter into correspondence with their credit hire company or they will become personally liable for the full cost of the hire car they had; its one of the key conditions of getting the credit in the first place.

    ianG said:
    My concern is regarding speaking or communicating with the hire company when the dispute is between them and the at fault party insurance company.

    Any thoughts please?
    Read the credit agreement you signed with them, normally its the back of the handover doc you signed when you were first given the car. Its almost 100% certain that failure to support their attempts to recover their outlay from the third party insurer will make you fully liable for the cost. 

    It sounds like the third party insurers are saying you didnt fulfill your legal obligation to reasonably mitigate your losses. This will typically cover saying that you've hired a £200 a day car, could you have lived with a more basic model, smaller car etc for £100/day instead? Credit hire can be double the price of a hire car (or more) and so they'll also challenge if you had to take the car on credit rather than afford to pay it for yourself. There can also be a dispute on the period you had it, at times drivable cars are taken in for inspection and then sit there for 6 weeks whilst parts are ordered all the time you're in a £200/day car whereas you could have continued to use your damaged car until the parts were ready.

    If you do support the credit hire company then in almost all cases, other than fraud, if they dont recover the whole amount the shortfall is written off. 
    Thanks for those points. The car hire co billed to 'ABI Non-fault', which left my agreement at £0.00. But I appreciate your last para explaining where this is coming from.
  • DullGreyGuy
    DullGreyGuy Posts: 15,678 Forumite
    10,000 Posts Second Anniversary Name Dropper
    ianG said:

    Thanks for those points. The car hire co billed to 'ABI Non-fault', which left my agreement at £0.00. But I appreciate your last para explaining where this is coming from.
    https://www.gtacredithire.com/

    They are presumably making some reference to the ABI GTA on credit hire, you can read more about it on the linked site above.

    The bill would have been to the at fault party's insurer, if both the hire card company and the insurer are signed up to the GTA it avoids arguments over rates etc but doesnt automatically mean it has to be paid without question.
  • Stateofart
    Stateofart Posts: 334 Forumite
    Fourth Anniversary 100 Posts
    Wouldn't be surprised if the accident repair place is using a car hire company as the insurance middle man.  I did this and it meant my insurance company wasn't involved as the hire company did the chasing, took a £300 fee for the privilege and loaned a very expensive car to me for months, all billed to the at fault party.  Turned a £350 bill into a 10k one.
  • Wouldn't be surprised if the accident repair place is using a car hire company as the insurance middle man.  I did this and it meant my insurance company wasn't involved as the hire company did the chasing, took a £300 fee for the privilege and loaned a very expensive car to me for months, all billed to the at fault party.  Turned a £350 bill into a 10k one.
    I really hope they didn't get paid £10k. Pushes up prices for everyone.
  • jlfrs01
    jlfrs01 Posts: 290 Forumite
    Sixth Anniversary 100 Posts Name Dropper
    I had a rear-end shunt about 3 years ago, my insurance company initially put a hire car company in touch with me to provide a vehicle whilst mine was being fixed, I thought "that's great and the car they're offering is brand new and much nicer than my own so why not if the at fault's insurance company has to stump up for the bill?"

    After receiving the hire car I read all the paperwork and to my horror found that I'd be on the hook if the insurer refused to pay or the hire company failed to recover their costs in full or in part.

    I subsequently found out the hire company was planning to bill the insurer a huge amount for this vehicle which scared me to death so I had it picked up and the contract cancelled. I called the at fault's insurer who then put their own, approved hire car company in touch to supply a courtesy car. I think this almost seems like a racket - the hire company can't fail to win but insurers do seem to be on to them, just my opinion though. Hope the OP gets it sorted. 
  • ianG
    ianG Posts: 90 Forumite
    Part of the Furniture 10 Posts
    jlfrs01 said:
    I had a rear-end shunt about 3 years ago, my insurance company initially put a hire car company in touch with me to provide a vehicle whilst mine was being fixed, I thought "that's great and the car they're offering is brand new and much nicer than my own so why not if the at fault's insurance company has to stump up for the bill?"

    After receiving the hire car I read all the paperwork and to my horror found that I'd be on the hook if the insurer refused to pay or the hire company failed to recover their costs in full or in part.

    I subsequently found out the hire company was planning to bill the insurer a huge amount for this vehicle which scared me to death so I had it picked up and the contract cancelled. I called the at fault's insurer who then put their own, approved hire car company in touch to supply a courtesy car. I think this almost seems like a racket - the hire company can't fail to win but insurers do seem to be on to them, just my opinion though. Hope the OP gets it sorted. 
    That's quite an eye-opener, thanks I will be much more cautious in the same situation next time.
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