Offered a like for like vehicle after a non fault accident?....

[INSURANCEGUY]

Hi all,

 

The insurance industry is currently fighting what is a very costly head of claim, Credit Hire.

 

When you have an accident that is not you fault, and you contact your insurer, or chosen garage, they will often explain that they can do the repairs, give you a like for like hire car, all without affecting your insurance.

 

Sounds good doesnt it? Especially when it's coming from you Prestige Dealership.

 

The down side:

 

You are asked to sign a credit agreement, which potentially holds you liable, should the accident management company fail to recover their outlay.

 

Although, many of these companies act in line with the ABI GTA (Association of British Insurers General Terms of Agreement) the hire charges are still extortiniate, for a vauxhall astra, which you could pick up for maybe £20 per day, they can charge £30-£40 per day, so BMW's, Jag's, etc are all prime targets- if they can double the price, there's alot of money to be made!

 

Garages/Insurers receive decent commission for this, it is believed upto £1500 plus a percentage of the hire charges.

 

The cost of claims has a direct impact on premiums, so accept credit hire, potentially be charged a fortune for it, and then moan when your insurance goes up!

 

On the other hand, it may all go well, but just be careful!

[Monty2007]

Hi

I have just been involved in an accident and have legal protection cover on a fully comp policy. My insurers (Bell) took some "basic" details and told me that it is likely that the other side will be liable (they came out of a side road in front of me, I broke and hit them while they were still moving). Anyway they offered me a hire car as you describe, but told me that even if I am found at fault then I will not have to pay anything at all for the hire care, I have this in writing too.

The hire car is returned when the claim is settled since my car and the 3rd party are write off's. I was very careful about signing a credit agreement and only did this on the basis of zero personal liability on me. I assume that this is an insurance policy that is within my legal protection cover.

I would be interested in your view?

[INSURANCEGUY]

Hi Monty,

 

Your car will have come through Bell Legal/Albany Assistance, who, as they are owned by the Helphire group, I would imagine offer the same insurance as Helphire- in that you wont have any liability unless you gave false information.

 

Not all hire companies have this and I would advise anyone to check carefully before signing.

[JonCris]

Sorry mate a typical scare tactic initiated by the insurance industry

 

Most such hires are offered on a like for like basis & their charges are usually based on spot checking national rates.

 

Also it's a requirement that the claimant be liable to pay the charges before it can be collected from the other side. It's known as the 'indemnity principal'. It There has been attempts to change the principal but the insurance industry have objected

[INSURANCEGUY]

JonCris, ultimately, any credit agreement potentially leaves a claimant liable, I have nothing to gain by being anti CH, I work for an insurerr, and as long as there's credit hire, I have a job! I just think people should be cauteous before they accept offers.

[JonCris]

The introduction of such hire is usually instigated by the BEI so the cost should never fall upon the insured & if it does the claimant has a remedy........to sue the introducer

[JonCris]

I should be pleased to know of any instances where such hirers have demanded a greater payment than that availale

[INSURANCEGUY]

by signing most of these agreements, you are potentially accepting personal liability for hire costs.

 

I dont know about you but I wouldnt want the hassle of suing the introducer?

 

Also, I am not disputing demands for payment, merely the credit hire risk

Edited March 15, 2009 by INSURANCEGUY
typo

[INSURANCEGUY]

The Majority of claimants will have a hassle free hire car,

 

but read this!

 

Pensioner driven to distraction by 3,300 legal row over 'free' car hire | Money | The Guardian

[JonCris]

& this bit

Accident Exchange ran into legal disputes with insurers that baulked at the high cost of its cars, and which said they had not authorised the replacements. These were resolved in Accident Exchange's favour.[/u] The firm says it works within the ABI's general terms of agreement, and is regulated by the Financial Services Authority unquote]

[JonCris]

& of course those reading this thread should be aware that if insurers had their way no one but no one would be allowed a courtesy car In fact if they could avoid paying out on ANY claim no matter how genuine they would.........oh almost forgot they do............ frequently

[gyzmo]

Just like Direct Line when they first started out

[JonCris]

I think you mean 'Help Hire' Direct Line never hired vehicles

[gyzmo]

Apologies - I was referring to not paying out bit, something DL was quite famous for.

[JonCris]

DL were an utter disgrace & succeeded in giving, what was in principal a good idea, a very bad name.

 

To long had insurance companies ignored the problems caused by victims being left without transport or a means of taking prompt action DL did offer a solution. Problem is so good was their idea that they got greedy & didn't follow the proper procedures. Also staff made most of their income from commission something which led to inevitable fraud