Management Claim Company No Fault Claim Going To Court

Em62

My friends are quite old and had an accident where a car ran into back of them as they were stationary trying to leave a multi storey car park. The other party Admitted liability and their insurance company have paid out for the full repair to the claims company. But,  the other insurance company is not happy with the hire company charges being so high with the replacement car.  They are taking the management company to court as the hire costs for 7 weeks hire are too high, 16k.  

My friends have the money to pay for it but they were told by the claims company that this would be covered as there is no dispute with blame and it is all ok.  

The claims company has an indemnity to cover costs up to 25k in the event that the other party’s insurer disputed any costs.  But my friends have been told they still have to go to court to prove they needed this hire car to help the claims company recover the 16k for them.  

I have never heard of this in my experience my hire charges were all covered for a similar situation. 

Do they need to get legal advice? Is this usual ?  

Thanks in advance

Desmond_Hume

Sorry, 16 grand for seven weeks hire car? I’m not surprise me they are disputing it. 

400ixl

This is one of the risks of using these 3rd party claims management companies and their credit hire approach. the whole practice needs regulating.

Yes, to avoid having to pay the claim themselves they have to do what the management company ask which could include going to court and having to hand over their bank statements to show they needed the credit hire.

LightFlare

Desmond_Hume said:

Sorry, 16 grand for seven weeks hire car? I’m not surprise me they are disputing it. 

Not surprising premiums are going up either.

Hoenir

What vehicle did they hire? That's £326 a day.  Something's amiss. 

born_again

Em62 said:

My friends are quite old and had an accident where a car ran into back of them as they were stationary trying to leave a multi storey car park. The other party Admitted liability and their insurance company have paid out for the full repair to the claims company. But,  the other insurance company is not happy with the hire company charges being so high with the replacement car.  They are taking the management company to court as the hire costs for 7 weeks hire are too high, 16k.  

My friends have the money to pay for it but they were told by the claims company that this would be covered as there is no dispute with blame and it is all ok.  

The claims company has an indemnity to cover costs up to 25k in the event that the other party’s insurer disputed any costs.  But my friends have been told they still have to go to court to prove they needed this hire car to help the claims company recover the 16k for them.  

I have never heard of this in my experience my hire charges were all covered for a similar situation. 

Do they need to get legal advice? Is this usual ?  

Thanks in advance

Time to contact their ins co & let them deal with it.

facade

Em62 said:

My friends are quite old and had an accident where a car ran into back of them as they were stationary trying to leave a multi storey car park. The other party Admitted liability and their insurance company have paid out for the full repair to the claims company. But,  the other insurance company is not happy with the hire company charges being so high with the replacement car.  They are taking the management company to court as the hire costs for 7 weeks hire are too high, 16k.  

My friends have the money to pay for it but they were told by the claims company that this would be covered as there is no dispute with blame and it is all ok.  

The claims company has an indemnity to cover costs up to 25k in the event that the other party’s insurer disputed any costs.  But my friends have been told they still have to go to court to prove they needed this hire car to help the claims company recover the 16k for them.  

I have never heard of this in my experience my hire charges were all covered for a similar situation. 

Do they need to get legal advice? Is this usual ?  

Thanks in advance

Yes, it is usual, have a search on here, plenty of threads on it.

The "Accident Management" company make ££££££££'s from grossly inflated car hire charges.

They "get away" with it because they are "credit hire" (they lend you the car on the knock, and charge massive interest on premium hire fees because you couldn't finance the hire any other way- or so they claim)

What usually happens is-

 

• the third party insurers just laugh at the extortionate bill, and refuse to pay it.
• the Accident Management company take them to Court.
• the third party offer a more reasonable amount to settle out of court
• the Accident Management company agree.
• there is another crate of bubbly at the Shareholder's meeting- glug! glug! glug!

It is very unlikely to actually end up in a court, because the absolute last thing the accident management company want is your friends to truthfully say that they could easily have paid up front to hire a chauffeur driven Rolls Royce an equivalent car at a massively lower rate and claimed the cost back from the third party (called "mittigating their losses")

As said, this is common practice, and is one part of why insurance premiums are so high- "someone" has to foot the bill, and it isn't "The Shareholders"

Ectophile

The claims company has an indemnity to cover costs up to 25k in the event that the other party’s insurer disputed any costs.  But my friends have been told they still have to go to court to prove they needed this hire car to help the claims company recover the 16k for them. 

They must assist the hire car company get the money, or they risk being landed with the ridiculously high car hire bill themselves.

It's up to the judge whether to award that amount or throw it out as ridiculous.  But your friends must go along with it to avoid being liable themselves.

facade

Ectophile said:

The claims company has an indemnity to cover costs up to 25k in the event that the other party’s insurer disputed any costs.  But my friends have been told they still have to go to court to prove they needed this hire car to help the claims company recover the 16k for them. 

They must assist the hire car company get the money, or they risk being landed with the ridiculously high car hire bill themselves.

It's up to the judge whether to award that amount or throw it out as ridiculous.  But your friends must go along with it to avoid being liable themselves.

Yes, I omitted to say, they must co-operate fully with the Accident Management company- including sharing all their requested financial details, e.g. bank balances, amounts in savings etc. (which the legal team will use to claim they are as poor as Church mice and had no choice but to go credit hire)

Em62

What I am worried about is that they did already supply bank statements and they do have that kind of cash.  What I am not sure about is why they were persuaded to take on the credit hire they have not claimed on insurance for over 30 years. And listened to the instruction of the claims management team. They did not read the small print and even when I pointed out to them that they signed the clause that stated they would be liable they seemed to not believe it was so.  But I have told them they must co-operate.  

Aretnap

born_again said:

Em62 said:

My friends are quite old and had an accident where a car ran into back of them as they were stationary trying to leave a multi storey car park. The other party Admitted liability and their insurance company have paid out for the full repair to the claims company. But,  the other insurance company is not happy with the hire company charges being so high with the replacement car.  They are taking the management company to court as the hire costs for 7 weeks hire are too high, 16k.  

My friends have the money to pay for it but they were told by the claims company that this would be covered as there is no dispute with blame and it is all ok.  

The claims company has an indemnity to cover costs up to 25k in the event that the other party’s insurer disputed any costs.  But my friends have been told they still have to go to court to prove they needed this hire car to help the claims company recover the 16k for them.  

I have never heard of this in my experience my hire charges were all covered for a similar situation. 

Do they need to get legal advice? Is this usual ?  

Thanks in advance

Time to contact their ins co & let them deal with it.

What do you think their insurance company are going to do?