Insurance process question
Discussion
Chatting to a work friend today, he's had someone drive into the back of his Cayman yesterday. Fortunately the other party is insured and have admitted fault to both insurance companies.
My friend want his car to go to a Porsche Approved bodyshop, as the car is only 6 months old.
His insurance have said, 'ok, but if the estimate is too high, we might contest it and it may have to go to our own repairer'.
What happens? Surely it will be paid for by the 3rd party's insurance. He's not gone crazy and asked for a posh courtesy car, as he cycles to work.
How does it work? I'd got no idea, so couldn't suggest what to do.
My friend want his car to go to a Porsche Approved bodyshop, as the car is only 6 months old.
His insurance have said, 'ok, but if the estimate is too high, we might contest it and it may have to go to our own repairer'.
What happens? Surely it will be paid for by the 3rd party's insurance. He's not gone crazy and asked for a posh courtesy car, as he cycles to work.
How does it work? I'd got no idea, so couldn't suggest what to do.
They are wrong. You have a legal right to choose your repairer. Insurance companies will try and BS you with stuff like this and about how they won t warrantee the work, but the law is on your (well your friends) side. I have done it twice before. Both time times wanting to take a BMW to BMW to repair. The insurance co fussed about it, saying they won t warranty the work and they won t give a courtesy car and it will cost more. The BMW warranty was better, and didn t risk any issues with related parts the insurance co wouldn t cover, BMW gave a courtesy car and from memory the excess was £50 more, or less if you take in to account the amount of cans of coke and biscuits I consumed when I dropped off and picked up the car.
Edited by DeadShed on Wednesday 22 October 20:03
Edited by DeadShed on Wednesday 22 October 20:06
Don't go through your own insurer if someone else has accepted liability and the 3rd party insurer is willing to deal direct
This is your best chance of keeping control of the claim and avoiding delays.
Only involve your own insurer if the other isn't being reasonable because your own insurer has all the wrong incentives when someone else is paying the bill and you'll find more money going into your hire car than your repair.
This is your best chance of keeping control of the claim and avoiding delays.
Only involve your own insurer if the other isn't being reasonable because your own insurer has all the wrong incentives when someone else is paying the bill and you'll find more money going into your hire car than your repair.
Mr Squarekins said:
Chatting to a work friend today, he's had someone drive into the back of his Cayman yesterday. Fortunately the other party is insured and have admitted fault to both insurance companies.
My friend want his car to go to a Porsche Approved bodyshop, as the car is only 6 months old.
His insurance have said, 'ok, but if the estimate is too high, we might contest it and it may have to go to our own repairer'.
What happens? Surely it will be paid for by the 3rd party's insurance. He's not gone crazy and asked for a posh courtesy car, as he cycles to work.
How does it work? I'd got no idea, so couldn't suggest what to do.
Legally that is correct. Your friend has to mitigate his losses, which means he cannot take the car to be repaired to by someone who charges excessive amount to do the repair.My friend want his car to go to a Porsche Approved bodyshop, as the car is only 6 months old.
His insurance have said, 'ok, but if the estimate is too high, we might contest it and it may have to go to our own repairer'.
What happens? Surely it will be paid for by the 3rd party's insurance. He's not gone crazy and asked for a posh courtesy car, as he cycles to work.
How does it work? I'd got no idea, so couldn't suggest what to do.
It does not matter which insurance company is paying, losses should be mitigated by law.
e-honda said:
Don't go through your own insurer if someone else has accepted liability and the 3rd party insurer is willing to deal direct
This is your best chance of keeping control of the claim and avoiding delays.
Only involve your own insurer if the other isn't being reasonable because your own insurer has all the wrong incentives when someone else is paying the bill and you'll find more money going into your hire car than your repair.
I'm sure that I have seen the opposite advice on this forum: ie don't deal direct with the TP insurers as they try to get away with the minimum they can, while your own insurer knows that they will get their outlay back so are less bothered about cost cutting.This is your best chance of keeping control of the claim and avoiding delays.
Only involve your own insurer if the other isn't being reasonable because your own insurer has all the wrong incentives when someone else is paying the bill and you'll find more money going into your hire car than your repair.
e-honda said:
Don't go through your own insurer if someone else has accepted liability and the 3rd party insurer is willing to deal direct
This is your best chance of keeping control of the claim and avoiding delays.
Only involve your own insurer if the other isn't being reasonable because your own insurer has all the wrong incentives when someone else is paying the bill and you'll find more money going into your hire car than your repair.
Are you saying don’t notify your insurers and only communicate with the 3rd party insurance company , or notify yours but then only communicate with the other insurance company?This is your best chance of keeping control of the claim and avoiding delays.
Only involve your own insurer if the other isn't being reasonable because your own insurer has all the wrong incentives when someone else is paying the bill and you'll find more money going into your hire car than your repair.
The Gauge said:
e-honda said:
Don't go through your own insurer if someone else has accepted liability and the 3rd party insurer is willing to deal direct
This is your best chance of keeping control of the claim and avoiding delays.
Only involve your own insurer if the other isn't being reasonable because your own insurer has all the wrong incentives when someone else is paying the bill and you'll find more money going into your hire car than your repair.
Are you saying don t notify your insurers and only communicate with the 3rd party insurance company , or notify yours but then only communicate with the other insurance company?This is your best chance of keeping control of the claim and avoiding delays.
Only involve your own insurer if the other isn't being reasonable because your own insurer has all the wrong incentives when someone else is paying the bill and you'll find more money going into your hire car than your repair.
I chose where the car was repaired. From memory, the TP insurers asked me for photos of the damage which they accepted - but when the bodyshop estimated the cost of repair, they suddenly needed an assessor to see the car which delayed repairs by about a week. It was a slightly odd thing simply because the cost of the repair was pretty minimal compared to the car value - but other than that, everything was fine.
The Gauge said:
e-honda said:
Don't go through your own insurer if someone else has accepted liability and the 3rd party insurer is willing to deal direct
This is your best chance of keeping control of the claim and avoiding delays.
Only involve your own insurer if the other isn't being reasonable because your own insurer has all the wrong incentives when someone else is paying the bill and you'll find more money going into your hire car than your repair.
Are you saying don t notify your insurers and only communicate with the 3rd party insurance company , or notify yours but then only communicate with the other insurance company?This is your best chance of keeping control of the claim and avoiding delays.
Only involve your own insurer if the other isn't being reasonable because your own insurer has all the wrong incentives when someone else is paying the bill and you'll find more money going into your hire car than your repair.
Could be the two cars have the same underwriters?
With a car you care about and want to preserve the value of, the main thing is to get a repair you are happy with.
It is better to be somewhat out of pocket getting the repair done, than to find later that your car is compromised.
It's not just you the owner who needs to be happy, it's the warranty people and whoever buys the car next.
I'd suggest getting quotes for repairs you'll be happy with, and being prepared to argue your case.
With a car you care about and want to preserve the value of, the main thing is to get a repair you are happy with.
It is better to be somewhat out of pocket getting the repair done, than to find later that your car is compromised.
It's not just you the owner who needs to be happy, it's the warranty people and whoever buys the car next.
I'd suggest getting quotes for repairs you'll be happy with, and being prepared to argue your case.
The Gauge said:
Are you saying don t notify your insurers and only communicate with the 3rd party insurance company , or notify yours but then only communicate with the other insurance company?
NoCommunicate with who ever you want, and definitely inform you company of the claim but deal directly with the 3rd party for the claim where possible
Mr Squarekins said:
Chatting to a work friend today, he's had someone drive into the back of his Cayman yesterday. Fortunately the other party is insured and have admitted fault to both insurance companies.
My friend want his car to go to a Porsche Approved bodyshop, as the car is only 6 months old.
His insurance have said, 'ok, but if the estimate is too high, we might contest it and it may have to go to our own repairer'.
What happens? Surely it will be paid for by the 3rd party's insurance. He's not gone crazy and asked for a posh courtesy car, as he cycles to work.
How does it work? I'd got no idea, so couldn't suggest what to do.
Assuming his insurance company was just notified by him ( as they should be ) your friend is claiming off the TP’s Insurer so any conversation on costs would be between them and not him. My friend want his car to go to a Porsche Approved bodyshop, as the car is only 6 months old.
His insurance have said, 'ok, but if the estimate is too high, we might contest it and it may have to go to our own repairer'.
What happens? Surely it will be paid for by the 3rd party's insurance. He's not gone crazy and asked for a posh courtesy car, as he cycles to work.
How does it work? I'd got no idea, so couldn't suggest what to do.
However for a 6 month old car I would be surprised if either Insurer tries that hard to get the car repaired anywhere else.
Some years ago my 7 week old M3 was driven into by a third party and their Insurer asked did I mind where it was repaired though ?!
Both times I've had incidents like that I claimed directly from the other insurer.
First time was in 2010 and my BMW was still under warranty so I wanted it repaired by a BMW Approved repairer. The other insurer dragged their heels so I used an Accident Management company and there was no issue about where it went. Dropped my car off at Sytner and there was a nearly new courtesy car waiting for me which I kept until mine was ready. Totally pain free.
Next time was in 2023 and I dealt with the other insurer myself. As my car was 17 years old I didn't mind where it went so I took it to a repairer they suggested who padded their estimate so it ended up being a Cat N. But I got back 50% of what I had paid for it in 2019 and kept a perfectly usable car with minor cosmetic damage, so that didn't work out too bad either.
First time was in 2010 and my BMW was still under warranty so I wanted it repaired by a BMW Approved repairer. The other insurer dragged their heels so I used an Accident Management company and there was no issue about where it went. Dropped my car off at Sytner and there was a nearly new courtesy car waiting for me which I kept until mine was ready. Totally pain free.
Next time was in 2023 and I dealt with the other insurer myself. As my car was 17 years old I didn't mind where it went so I took it to a repairer they suggested who padded their estimate so it ended up being a Cat N. But I got back 50% of what I had paid for it in 2019 and kept a perfectly usable car with minor cosmetic damage, so that didn't work out too bad either.
kestral said:
Legally that is correct. Your friend has to mitigate his losses, which means he cannot take the car to be repaired to by someone who charges excessive amount to do the repair.
It does not matter which insurance company is paying, losses should be mitigated by law.
Not really. Certainly not as far as claiming from the third party's insurer goes, at least.It does not matter which insurance company is paying, losses should be mitigated by law.
In that case the loss being claimed for is actually the reduction in the car's value which occurred as a result of the accident. That happens instantaneously and cannot be mitigated after the fact, eg by shopping around for a cheaper repair quote. The cost of repair is merely a measure of that loss of value, and so long as the cost is "reasonable" it will be reclaimable. Ultimately whether the cost is reasonable would be a matter for a court to decide, but (1) "reasonable" doesn't necessarily mean "cheapest available" and (2) taking a six month old Porsche to a Porsche approved repairer certainly doesn't feel wildly unreasonable to me.
Relevant case law is Coles v Hetherton.
If the OP is claiming from his own policy then it's more a question of what the policy terms say, coupled with any relevant consumer law and regulations, rather than the need to mitigate a loss as such.
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