Insurance scam by Insurance companies?
Discussion
Some reverses into friends car, dent in wing , scratches on wheel arch trim.
Says she will pay, off he goes gets quote from insurance approved repairer, a mind boggling 4800 quid.
Lady says she can't pay that , both inform their insurance companies.
The next bit is completely mind boggling.
His insurance call, offer to put 600 quid in his bank, send a courtesy car within 2 hours, collect his car, he says OK, they do exactly that.
Just after the courtesy car arrived, her insurance company call, and offer 800 quid into his account and a courtesy car to let them collect his car and deal with repairs.
Wtf is going on, who is making money out of this ?
Surely the insurance company want repairs as cheap as possible but they are already 600 plus courtesy car in debt for this job, still got to pay for repair, it is nowhere near write off damage.
Seems the industry is all corruption lol
Says she will pay, off he goes gets quote from insurance approved repairer, a mind boggling 4800 quid.
Lady says she can't pay that , both inform their insurance companies.
The next bit is completely mind boggling.
His insurance call, offer to put 600 quid in his bank, send a courtesy car within 2 hours, collect his car, he says OK, they do exactly that.
Just after the courtesy car arrived, her insurance company call, and offer 800 quid into his account and a courtesy car to let them collect his car and deal with repairs.
Wtf is going on, who is making money out of this ?
Surely the insurance company want repairs as cheap as possible but they are already 600 plus courtesy car in debt for this job, still got to pay for repair, it is nowhere near write off damage.
Seems the industry is all corruption lol
I think you'll find they were both Accident Management Companies and the 'Courtesy Car' may be a credit hire car. Your friend needs to be very careful that he doesn't end up with a large bill when the insurance company reject the payment for the courtesy car.
Or, of course, I may be completely wrong. A lot depends on what was said, by whom, and the exact wording of whatever he may have signed.
Or, of course, I may be completely wrong. A lot depends on what was said, by whom, and the exact wording of whatever he may have signed.
Edited by littleredrooster on Tuesday 24th March 12:18
littleredrooster said:
I think you'll find they were both Accident Management Companies and the 'Courtesy Car' may be a credit hire car. Your friend needs to be very careful that he doesn't end up with a large bill when the insurance company reject the payment for the courtesy car.
Or, of course, I may be completely wrong. A lot depends on what was said, by whom, and the exact wording of whatever he may have signed.
What he said, there is 100% no way his insurance company are buying the work especially as there will be an excess in place for own insurers work.Or, of course, I may be completely wrong. A lot depends on what was said, by whom, and the exact wording of whatever he may have signed.
Edited by littleredrooster on Tuesday 24th March 12:18
littleredrooster said:
I think you'll find they were both Accident Management Companies and the 'Courtesy Car' may be a credit hire car. Your friend needs to be very careful that he doesn't end up with a large bill when the insurance company reject the payment for the courtesy car.
Hmm, I did wonder why, when I renewed my AA membership, they sent me a leaflet and window sticker saying 'Let us manage your accident!' or words to that effect. Obviously they're making money somehow.littleredrooster said:
I think you'll find they were both Accident Management Companies and the 'Courtesy Car' may be a credit hire car. Your friend needs to be very careful that he doesn't end up with a large bill when the insurance company reject the payment for the courtesy car.
Or, of course, I may be completely wrong. A lot depends on what was said, by whom, and the exact wording of whatever he may have signed.
Unless both insurance companies passed on details to claim management companies that is not the case, both contacted their respective insurance companies direct. Or, of course, I may be completely wrong. A lot depends on what was said, by whom, and the exact wording of whatever he may have signed.
Edited by littleredrooster on Tuesday 24th March 12:18
Thinking about it since, I can only assume the third party insurance company was trying to avoid a big invoice from his insurance company.
The quote he got was ridiculous in the first place, it is very light cosmetic damage.
Courtesy car seems ridiculous too, the car could be driven, two days max for repair allowing for paint to dry lol,
Fingers crossed and touch wood , not had to deal with insurance companies, except for paying them, for decades, heard horror stories of course, this one sounds the like Jackanory, but it isn't.
No personal injury involved, just a very minor knock to bottom of a wing.
The world's gone mad.
Doesitdrive said:
Unless both insurance companies passed on details to claim management companies that is not the case, both contacted their respective insurance companies direct.
Why don't you believe that is the case? They've been doing to for decades...some might even own the AMC they're passing you on to...or have a commercial agreement for That's exactly what happened to me...my insurer told me not to worry as they would 'sort it all'.
Got a call that afternoon telling me that as it was a non-fault accident, I was entitled to a courtesy car paid for by the 3rd party.
Next day a car arrived on a truck and mine was taken away on the same truck...I was asked to sign the paperwork to say I'd received the courtesy car, that there was no damage, and that I understood I would be liable for any speeding/parking tickets.
A couple of days later I started getting letters from Accident Exchange with further details of the credit hire car I'd been given, with the breakdown of the daily cost of that hire...including the delivery fee, the sat-nav add-on, the extra driver add-on, the European cover add-on, etc. etc. The add-ons more or less doubled the cost of the 'courtesy' car.
So, I'd be double-checking everything is as you believe...not that you'll end up paying for anything, but you may be asked to submit a statement when the 3rd party disputes the cost of the credit hire car when they could have supplied an Enterprise hire car at a fraction of the cost.
Don't forget that it will it be more difficult to defend an 'excessive' credit hire cost if you could have mitigated that cost by hiring a car at retail rated (i.e. an Enterprise car at £30/day vs £300 for credit hire) or using another that's available to you.
Edited by mmm-five on Tuesday 24th March 15:03
Going to call him now, but if insurance companies are doing this there needs to be regulation of it surely.
Are we now accepting that paying for insurance means the insurance company can pass on your details to a company that will scam you. ?
He is double checking now, but he says he has only dealt with his insurance company, he already had a courtesy car when the third party insurers called. So it was not an option to take their offer.
Are we now accepting that paying for insurance means the insurance company can pass on your details to a company that will scam you. ?
He is double checking now, but he says he has only dealt with his insurance company, he already had a courtesy car when the third party insurers called. So it was not an option to take their offer.
Edited by Doesitdrive on Tuesday 24th March 14:40
Third party insurer has a vested interest in managing the costs, so any incentive they provide - courtesy car (when you don't have it on your own cover), cash in hand, is very credible.
Your own insurer - having already had your premium - is minded to capitalise on the situation and farm your claim out to an AMC, get a kickback on that referral and whatever else comes down the pipe.
Not all insurers are predatory like that, but many are - including the usual suspects ("high ranking mariner" comes to mind).
It seems like a cutthroat, Wild West kind of industry where insurers are looking to cream eachother any chance they get.
For what it's worth - a friend had an accident in his car, or rather someone reversed into him in a car park. It went much the same way where a "cash in hand" quote was sought, and as is de rigueur nowadays the person wanting to go outside insurance has no clue at all how much cars cost to replace nowadays, so ended up going through insurance.
He went direct to their insurance, after paying DVLA £10 for the info (other party ghosted him). After their insurer confirmed they were at fault they couldn't do enough for him, gave him a nearly new BMW to go around in, and paid him £250 cash for letting them deal with it. So, it does happen.
If this offer from their insurance is genuine - I can only assume they're going to farm it out to a AMC. Pretty disgusting really.
Your own insurer - having already had your premium - is minded to capitalise on the situation and farm your claim out to an AMC, get a kickback on that referral and whatever else comes down the pipe.
Not all insurers are predatory like that, but many are - including the usual suspects ("high ranking mariner" comes to mind).
It seems like a cutthroat, Wild West kind of industry where insurers are looking to cream eachother any chance they get.
For what it's worth - a friend had an accident in his car, or rather someone reversed into him in a car park. It went much the same way where a "cash in hand" quote was sought, and as is de rigueur nowadays the person wanting to go outside insurance has no clue at all how much cars cost to replace nowadays, so ended up going through insurance.
He went direct to their insurance, after paying DVLA £10 for the info (other party ghosted him). After their insurer confirmed they were at fault they couldn't do enough for him, gave him a nearly new BMW to go around in, and paid him £250 cash for letting them deal with it. So, it does happen.
If this offer from their insurance is genuine - I can only assume they're going to farm it out to a AMC. Pretty disgusting really.
Durzel said:
Third party insurer has a vested interest in managing the costs, so any incentive they provide - courtesy car (when you don't have it on your own cover), cash in hand, is very credible.
Your own insurer - having already had your premium - is minded to capitalise on the situation and farm your claim out to an AMC, get a kickback on that referral and whatever else comes down the pipe.
Not all insurers are predatory like that, but many are - including the usual suspects ("high ranking mariner" comes to mind).
It seems like a cutthroat, Wild West kind of industry where insurers are looking to cream eachother any chance they get.
For what it's worth - a friend had an accident in his car, or rather someone reversed into him in a car park. It went much the same way where a "cash in hand" quote was sought, and as is de rigueur nowadays the person wanting to go outside insurance has no clue at all how much cars cost to replace nowadays, so ended up going through insurance.
He went direct to their insurance, after paying DVLA £10 for the info (other party ghosted him). After their insurer confirmed they were at fault they couldn't do enough for him, gave him a nearly new BMW to go around in, and paid him £250 cash for letting them deal with it. So, it does happen.
If this offer from their insurance is genuine - I can only assume they're going to farm it out to a AMC. Pretty disgusting really.
No wonder insurance costs are so high, and what about data protection? Your own insurer - having already had your premium - is minded to capitalise on the situation and farm your claim out to an AMC, get a kickback on that referral and whatever else comes down the pipe.
Not all insurers are predatory like that, but many are - including the usual suspects ("high ranking mariner" comes to mind).
It seems like a cutthroat, Wild West kind of industry where insurers are looking to cream eachother any chance they get.
For what it's worth - a friend had an accident in his car, or rather someone reversed into him in a car park. It went much the same way where a "cash in hand" quote was sought, and as is de rigueur nowadays the person wanting to go outside insurance has no clue at all how much cars cost to replace nowadays, so ended up going through insurance.
He went direct to their insurance, after paying DVLA £10 for the info (other party ghosted him). After their insurer confirmed they were at fault they couldn't do enough for him, gave him a nearly new BMW to go around in, and paid him £250 cash for letting them deal with it. So, it does happen.
If this offer from their insurance is genuine - I can only assume they're going to farm it out to a AMC. Pretty disgusting really.
At worst it is a second hand wing in colour job, from Birmingham of course, and a new plastic trim.
A sucker would pull most of the dent out.
This is madness, the 4800 quote was madness, the whole scenario is madness, and who pays in the long run ?
Waiting for a call back on details.
My eyes were opened a month or two back when my parked up on the street Accord was written off. First time dealing with insurance ever, so details exchanged etc but not really quite sure what to expect.
Had AMCs from both my own and 3rd party insurer in contact within hours basically trying to persuade me I needed a courtesy car, that I had "uninsured losses", was I injured etc. Basically had to be really blunt about not needing a courtesy car, no uninsured losses and no, I wasnt injured because I was 200 yards away in a building at the time.
Even when the 3rd party squared up with me directly I was still being plauged by them. Like the OP, I'm a bit surprised at the enthusiasm to spend our collective premiums so lavishly.
Had AMCs from both my own and 3rd party insurer in contact within hours basically trying to persuade me I needed a courtesy car, that I had "uninsured losses", was I injured etc. Basically had to be really blunt about not needing a courtesy car, no uninsured losses and no, I wasnt injured because I was 200 yards away in a building at the time.
Even when the 3rd party squared up with me directly I was still being plauged by them. Like the OP, I'm a bit surprised at the enthusiasm to spend our collective premiums so lavishly.
I had my car written off just before Xmas - not my fault.
I got a hire car eventually from enterprise, but bought a second had car from a relative, so phoned up to give it back as I was running out of space on the drive.
But enterprise really didn't want me to give it up, asking if i could just keep it parked on the street?
They seem under no compunction to keep costs down, yet insurance companyapologists workers will die in a ditch fighting trivial sums when the tables are turned.
It is what it is i suppose, but it needs calling out by the ombudsman, who seem pretty limp about things when they choose.
I got a hire car eventually from enterprise, but bought a second had car from a relative, so phoned up to give it back as I was running out of space on the drive.
But enterprise really didn't want me to give it up, asking if i could just keep it parked on the street?
They seem under no compunction to keep costs down, yet insurance company
It is what it is i suppose, but it needs calling out by the ombudsman, who seem pretty limp about things when they choose.
I had an accident several years back, drove into someone at a traffic light not realising i needed to wait for the filter arrow. Dumb mistake, but hey ho.
For probably 2 years after that accident I had phone calls from more than one company who somehow knew the particulars of the crash, and my phone number, telling me that I probably had injuries and should claim. Bearing in mind the crash was 100% my fault.
I phoned the company that was my insurer at the time asking them how it was possible that these companies have my details, given that they were the only company that had my mobile, etc. They were very evasive - suggesting that "they might have found it out from somewhere", etc.
Rotten industry and it is amazing to me that it isn't more regulated.
For probably 2 years after that accident I had phone calls from more than one company who somehow knew the particulars of the crash, and my phone number, telling me that I probably had injuries and should claim. Bearing in mind the crash was 100% my fault.
I phoned the company that was my insurer at the time asking them how it was possible that these companies have my details, given that they were the only company that had my mobile, etc. They were very evasive - suggesting that "they might have found it out from somewhere", etc.
Rotten industry and it is amazing to me that it isn't more regulated.
PorkInsider said:
Doesitdrive said:
He is double checking now, but he says he has only dealt with his insurance company,
Possibly not the case in this particular example, but it wouldn't be the first time an AMC implied they were actually the insurer when contacting a driver...From that I can only assume that a claims company have been instructed without his knowledge or it is the insurance company going to hit the other with a big invoice and the third party wanting to avoid that by organising the repair themselves.
Either way or whatever else is going on its b
ks, stemming from a ridiculous quote from an insurance approved repair company. I told him what has been said on here and he wasn't concerned at all as he only dealt with his insurance company and had called them, I got that bit wrong apparently, the only call to him was from the third party insurer or claim management company, which was not taken up.
We will see what happens I guess.
Eyersey1234 said:
When my car got scraped last July by a guy who refused to give me his details saying its only a scrape it doesn't matter as his appalling attitude annoyed me so much he ended up with a £3100 fault claim against him for repairs to the wing and repainting the wing and bumper.
How does that help the OP?GasEngineer said:
What are the £600 or £800 payment to your bank account for? Are they an upfront advance of your possible claim?
It wasn't to me but I assume so, not had insurance dealings for decades, certainly seems to have changed. If he hadn't gone to an insurance approved repairer in the first place, and used his phone it would all be done and dusted, the lady wouldn't be having NCB Issues.
Ridiculous situation created by another rip off industry IMO.
GasEngineer said:
What are the £600 or £800 payment to your bank account for? Are they an upfront advance of your possible claim?
Very unlikely. Usually it's just a straightforward bung to encourage you to deal with the claim in a particular way.The credit hire company who the OP's friend is confusing with his insurer will be hoping to charge a good few thousand pounds for the hire car, which they can bill to the third party's insurer. The £600 bung is not something that they can claim in addition to that, but if the friend takes their credit hire car they will be making enough profit on it that they can afford to slip him a few hundred quid. So if the bung persuades him to use their services, from their point of view it's money well spent.
Meanwhile the third party insurer really doesn't want him to use the credit hire company and land then with a bill for thousands of pounds, when they can arrange a hire car and repairs themselves for a fraction of that price. So again if £800 is enough to persuade the OP's friend to tell the credit hire company to get stuffed and let the this party insurer sorry him out themselves, from their point of view it's a good deal which keeps their costs down.
Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff