Insurance claim - 15% fee for handler?
Discussion
I had an accident with my TVR. Everything pretty much straight forward, third party admitted liability. I sent the estimate of our preferred repairer to my insurance - they work with a handler and suggested 'to speed things up' and get the claim sorted for me.
After a few days my repairer called and said that the insurance got in touch with him and they will deduct 15% of his final invoice as a fee.
Before I start making a fuss, could you please let me know:
1. is that general practice? Did you have similar experiences?
2. since I only provided an estimate, shall I simply ask the repairer to add 15% to their invoice? (even though this really goes against my values...)
3. shall I simply contact the third party insurer and sort it with them?
4. do I look for a new insurance company?
Thanks for your help
After a few days my repairer called and said that the insurance got in touch with him and they will deduct 15% of his final invoice as a fee.
Before I start making a fuss, could you please let me know:
1. is that general practice? Did you have similar experiences?
2. since I only provided an estimate, shall I simply ask the repairer to add 15% to their invoice? (even though this really goes against my values...)
3. shall I simply contact the third party insurer and sort it with them?
4. do I look for a new insurance company?
Thanks for your help
CarolsGriff said:
I had an accident with my TVR. Everything pretty much straight forward, third party admitted liability. I sent the estimate of our preferred repairer to my insurance - they work with a handler and suggested 'to speed things up' and get the claim sorted for me.
After a few days my repairer called and said that the insurance got in touch with him and they will deduct 15% of his final invoice as a fee.
Before I start making a fuss, could you please let me know:
1. is that general practice? Did you have similar experiences?
2. since I only provided an estimate, shall I simply ask the repairer to add 15% to their invoice? (even though this really goes against my values...)
3. shall I simply contact the third party insurer and sort it with them?
4. do I look for a new insurance company?
Thanks for your help
If the third party admitted liability, why are you claiming through your own insurer?After a few days my repairer called and said that the insurance got in touch with him and they will deduct 15% of his final invoice as a fee.
Before I start making a fuss, could you please let me know:
1. is that general practice? Did you have similar experiences?
2. since I only provided an estimate, shall I simply ask the repairer to add 15% to their invoice? (even though this really goes against my values...)
3. shall I simply contact the third party insurer and sort it with them?
4. do I look for a new insurance company?
Thanks for your help
I was in an accident in September, caused by a third party who admitted liability. I informed my insurers that this had occurred, but everything was dealt with by the third party insurers (who did not use any sort of claim management company).
Assuming nothing has started yet, I would be dealing direct with the third party insurers. There really is no reason to have yours - or some backhander claims company - involved.
Have I understood correctly.
Your own insurance company has passed you onto a "handler" to supposedly speed things up and doubtless make it simpler for you.
If so this will almost certainly be a claim management type company.
Go back to your own insurer and tell then you are unhappy with the arrangement and you want them (the insurer) to deal with it themselves.
Your own insurance company has passed you onto a "handler" to supposedly speed things up and doubtless make it simpler for you.
If so this will almost certainly be a claim management type company.
Go back to your own insurer and tell then you are unhappy with the arrangement and you want them (the insurer) to deal with it themselves.
I’ll preface this post by saying that not all claims management companies are sharks (‘anniesdad’ on here helped me a few years ago and were very professional and helpful - would recommend them) and that my experiences are from a few years ago, but:
Claims management companies tend to make their money from legal fees (harder to do these days, especially extortionately high ones as used to be the practice), car hire (again, like for like car rentals at a ‘premium’ price point) or a straight up fee.
The reason your insurers are keen to pass you off to one is because they don’t stand to gain anything by processing your claim (rather their staff are busy dealing with something they can’t monetise, so an overall loss) while handing you off to a third party claims company gets them a finders fee from said company.
Unless your TVR is your only car it’s likely that the claims management company can’t justify and expensive hire car cost (which they claim back from the liable party’s insurer) so they’re going with a straight up fee. They should have been upfront with you about it, but in my experience they keep quiet as long as possible.
Assuming you’ve not agreed to anything I’d tell them you don’t require their services and then contact the liable party’s insurers directly.
When I last did this their customer services were poor right up until I mentioned using a claims management company, at which point they became ultra helpful and organised an account at the body show of my choice as well as the offer of a courtesy car or a taxi to and from the body shop.
I find it intriguing that many insurers hate being at the receiving end of many (not all) of these companies, but happily throw them business when they believe another insurer is at fault.
Claims management companies tend to make their money from legal fees (harder to do these days, especially extortionately high ones as used to be the practice), car hire (again, like for like car rentals at a ‘premium’ price point) or a straight up fee.
The reason your insurers are keen to pass you off to one is because they don’t stand to gain anything by processing your claim (rather their staff are busy dealing with something they can’t monetise, so an overall loss) while handing you off to a third party claims company gets them a finders fee from said company.
Unless your TVR is your only car it’s likely that the claims management company can’t justify and expensive hire car cost (which they claim back from the liable party’s insurer) so they’re going with a straight up fee. They should have been upfront with you about it, but in my experience they keep quiet as long as possible.
Assuming you’ve not agreed to anything I’d tell them you don’t require their services and then contact the liable party’s insurers directly.
When I last did this their customer services were poor right up until I mentioned using a claims management company, at which point they became ultra helpful and organised an account at the body show of my choice as well as the offer of a courtesy car or a taxi to and from the body shop.
I find it intriguing that many insurers hate being at the receiving end of many (not all) of these companies, but happily throw them business when they believe another insurer is at fault.
BertBert said:
davek_964 said:
If the third party admitted liability, why are you claiming through your own insurer?
Perhaps because that's what the OP pays his ins co for? A fully comprehensive insurance service.Bert
Funnily enough, I have fully comp insurance as well - but there was no apparent reason for involving my own insurance company in the claim at all.
Considering the posts in this thread, that is a rather ridiculous comment anyway. His "fully comprehensive insurance service" isn't dealing with it are they? They've simply offloaded it to a parasitic claim management company - which the third party insurers would not have done.
davek_964 said:
Yeah, thanks.
Funnily enough, I have fully comp insurance as well - but there was no apparent reason for involving my own insurance company in the claim at all.
Considering the posts in this thread, that is a rather ridiculous comment anyway. His "fully comprehensive insurance service" isn't dealing with it are they? They've simply offloaded it to a parasitic claim management company - which the third party insurers would not have done.
Why was there "no apparent reason for involving your own insurance company".Funnily enough, I have fully comp insurance as well - but there was no apparent reason for involving my own insurance company in the claim at all.
Considering the posts in this thread, that is a rather ridiculous comment anyway. His "fully comprehensive insurance service" isn't dealing with it are they? They've simply offloaded it to a parasitic claim management company - which the third party insurers would not have done.
That is what you pay them for.
Perhaps under the misguided belief that you wouldn't have to declare this at renewal time ?
Unfortunately this is not the case.
over_the_hill said:
Why was there "no apparent reason for involving your own insurance company".
That is what you pay them for.
Perhaps under the misguided belief that you wouldn't have to declare this at renewal time ?
Unfortunately this is not the case.
Clearly not for that reason.That is what you pay them for.
Perhaps under the misguided belief that you wouldn't have to declare this at renewal time ?
Unfortunately this is not the case.
davek_964 said:
I was in an accident in September, caused by a third party who admitted liability. I informed my insurers that this had occurred,
There was absolutely no point. The third party insurers called me the evening of the accident. I was free to choose my own repairer, could have had a like for like courtesy car if I'd chosen (at a quoted cost to the third party insurers of ~£500 a day plus vat) etc. etc. My insurers would have simply been another unnecessary cog in the wheel. If I'd had issues with the third party insurers I would have used my own, but I really couldn't see that they offered any advantage when the third party had already admitted liability.Edited by davek_964 on Monday 12th November 14:59
davek_964 said:
There was absolutely no point. The third party insurers called me the evening of the accident. I was free to choose my own repairer, could have had a like for like courtesy car if I'd chosen (at a quoted cost to the third party insurers of ~£500 a day plus vat) etc. etc. My insurers would have simply been another unnecessary cog in the wheel. If I'd had issues with the third party insurers I would have used my own, but I really couldn't see that they offered any advantage when the third party had already admitted liability.
Yes, but that's your choice. It doesn't have to be everyone else's.Edited by davek_964 on Monday 12th November 14:59
Bert
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