Insurers -v- Case Management Companies

So you have had an accident and are trying to weigh up whether it would be best to go through your own insurance company, or use a Claims Management Company but do not know what they can offer you.  Let us help.

Insurance company:

• You will be treated as a number – just another person who does not stand out.
• Even if the accident was not your fault you will still have to pay the excess on your policy.  You are entitled to claim this back from the third party insurer but this means more paperwork and hassle.
• They have to refer claims onto a Solicitor when they come up against legal technicalities as they are not qualified to deal with these themselves.
• They have a set firm of Solicitors with whom they have an agreement with to send your non-fault claim onto in order to obtain more revenue.
• They cannot offer free initial advice with no strings attached.
• They can be very slow at responding with some insurance companies having a backlog of post of up to 3 months or so.
• It can at times be almost impossible to get though to speak to someone if you have a query due to ‘lines being busy’, ‘you are held in a queue’, or just getting an automated machine.
• Even if the accident is not your fault your insurer will charge you any agreed policy excess. (See our article on ‘The rule that insurers are keeping secret’).
• They will also get clients to agree to using certain companies by telling them they will save money if they do when the clients do not understand enough English to know what they are agreeing to.
• They will try and settle your claim for the first lowest amount possible so that they can close your file as quickly as possible.  Some of these are pre-medical offers of only £1000 where claims can actually be worth £3000+.
• Even if the accident is not your fault, if the other person involved provided a different version of events, or denies responsibility, you will lose your no claims bonus until the claim is settled in your favour.   This does not happen if you do not use your insurer.
• They will recommend that you use one of their approved repairers stating that it will be quicker than using a garage of your own choice and easy to commute to.  They may use this as a condition of being provided with a hire vehicle.
• Insurers are known to delay progressing claims, incurring significant penalty payments that add to their own costs when a claim is settled.

There have also been a number of cases where the an accident has been reported to an insurer for information purposes only where the insurer has gone on to act on the client’s behalf and write to third parties without the client’s instructions and consent.  This ‘bully boy’ tactic is becoming an ever increasing problem, particularly so within the last month with insurers wanting to cut down their costs and keep compensation to a minimum.

Claims Management Company:

• The Compensation Act 2006 provides the statutory framework for the regulation of claims management activities.
• With a Claims Management Company you are treated as an individual with your needs being important and assessed on an individual basis.
• The majority of claims management companies offer ‘no win no fee agreements’ so clients need not worry about how to fund their claim.
• They can manage everything all in one – informing insurers, arranging hire and vehicle repairs, medical, completing all forms.
• They do not charge for every letter/phone call etc.
• They will assist with completing forms and with collating evidence.
• They will obtain updates on your behalf and call you with any news.
• They will be upfront providing information about your claim in plain English.  If English is not your first language we will endeavour to find someone who can translate for you.
• They are local to where clients live to help with the personal touch.
• They can arrange for your claim to be investigated. For example, taking witness statements, taking photographs, assessing your chances of success instead of the client having to do all this themselves.
• They do not take any money from your compensation.
• They deal directly with the other party’s insurers, therefore protecting your No Claims Bonus and saving you paying any insurance policy excess.
• The Department for Constitutional Affairs acts as a regulator to Claims Management Companies and they must have a formal complaints procedure.
• If they cannot help with your particular circumstances, they will point you in the right direction free of charge. 
• They will only allow your claim to be settled for the amount that it is worth. 
• Many of their employees have legal qualifications.
• Their employees can act as a go-between between you and your Solicitor so you need never call your Solicitor as we understand that this can be very daunting for some people.  Claims Management Companies will be there for you; providing support throughout your claim from obtaining your instructions to handing over your compensation.
• They will let you use the repair company of your choice to get the vehicle repairs done.   If you choose your own repairer it will not affect your right to a hire vehicle.