Insurance Legal Claim?
Discussion
I'm after a bit of advice. My partner had an accident a couple of weeks ago when she had a coming together with a Royal Mail van on a tight bend on a single track road. Her car has been written off, mainly due to it's age and value (probably only about £1000). Although her insurance co. hasn't confirmed it yet there seems little doubt that the claim will be settled 50/50.
It looks like her policy included legal expenses cover and her insurance company have passed her details on to their tame firm of solicitors who've been chasing her fairly regularly ever since to put in a claim. They seem to be saying that even though it's 50/50 she's entitled to claim for half of her excess plus any other expenses she's incurred. Realistically there shouldn't be any other expenses as although she's got severe whiplash she's been signed off work by her doctor so there is no loss of earnings etc.
So far we've not done anything but need to make a decision today on whether to allow the solicitors to proceed with the claim. My instincts are not to as I'm not a fan of the whole claim culture and I suspect increasing the cost of the claim in any way will count against her longer term. But realistically is there anything to lose or should we just let the solicitors run with it?
It looks like her policy included legal expenses cover and her insurance company have passed her details on to their tame firm of solicitors who've been chasing her fairly regularly ever since to put in a claim. They seem to be saying that even though it's 50/50 she's entitled to claim for half of her excess plus any other expenses she's incurred. Realistically there shouldn't be any other expenses as although she's got severe whiplash she's been signed off work by her doctor so there is no loss of earnings etc.
So far we've not done anything but need to make a decision today on whether to allow the solicitors to proceed with the claim. My instincts are not to as I'm not a fan of the whole claim culture and I suspect increasing the cost of the claim in any way will count against her longer term. But realistically is there anything to lose or should we just let the solicitors run with it?
If it's simply a matter of recovering half of her excess, I'm surprised they're prepared to bother - how much is that?! They're expecting her to go down the five grand "my neck hurts" route, so I have a lot of respect for her (and you) for rejecting that even though it seems she is genuinely injured. Well done.
Get an estimate from your insurers as to what the total cost of the claim will be, with and then without this extra expenses claim, then do quotes online with the two different amounts. Often if it's less than £1000 difference it won't make any difference at all.
The problem comes if the other party put in a huge and preposterously over-milked claim right as you decide not to - as even though you don't get anything back, the claim cost rises massively. Perhaps ask your insurers what the other party is doing too, though I'm not certain they can tell you.
Get an estimate from your insurers as to what the total cost of the claim will be, with and then without this extra expenses claim, then do quotes online with the two different amounts. Often if it's less than £1000 difference it won't make any difference at all.
The problem comes if the other party put in a huge and preposterously over-milked claim right as you decide not to - as even though you don't get anything back, the claim cost rises massively. Perhaps ask your insurers what the other party is doing too, though I'm not certain they can tell you.
you are right if u do claim for whiplash or any other expenses your premium will undoubtedly rise but ive got a feeling your premium will rise anyway coz i reported a accident to my insurers and although we both decided to call it knock for knock and neither of us claimed it still went on our driving records well mine at least and low and behold my insurance went up at renewal but if you want to claim go thru solicitors coz u paid the sharks for that in your insurance premium so at least u can forget about it and let them have the hassle
you are right if u do claim for whiplash or any other expenses your premium will undoubtedly rise but ive got a feeling your premium will rise anyway coz i reported a accident to my insurers and although we both decided to call it knock for knock and neither of us claimed it still went on our driving records well mine at least and low and behold my insurance went up at renewal but if you want to claim go thru solicitors coz u paid the sharks for that in your insurance premium so at least u can forget about it and let them have the hassle
We did ask the insurers yesterday what the other party was doing but they said they didn't know what as they hadn't heard from them yet. It seemed a bit strange after two weeks.
I think our biggest fear was what the other driver might try and claim. I'd guess he'd be claiming on Royal Mail fleet insurance so would probably have nothing personally to lose by whacking in a huge claim. It's one of the reasons we don't want to rock the boat and were hoping to find out how the other party were playing things before making a decision.
Am I right in thinking that if the claim goes 50/50 it essentially means that each insurer pays their own clients costs rather than being a true 50/50 split? Or is it the case that each insurer pays the costs of the other party?
I think our biggest fear was what the other driver might try and claim. I'd guess he'd be claiming on Royal Mail fleet insurance so would probably have nothing personally to lose by whacking in a huge claim. It's one of the reasons we don't want to rock the boat and were hoping to find out how the other party were playing things before making a decision.
Am I right in thinking that if the claim goes 50/50 it essentially means that each insurer pays their own clients costs rather than being a true 50/50 split? Or is it the case that each insurer pays the costs of the other party?
As I understand it, the 50/50 split refers simply to the blame, and that each insurer will cover their own party's costs. That doesn't affect you, though, because the thing you have to put on future quotes is the total claim cost.
I think it unreasonable for you to be forced to decide about a claim before the other party has shown their hand, and I also think it's possible for you to ask your insurers what difference the accident would make to your premium and claim for this difference too. Not sure about that, though.
I think it unreasonable for you to be forced to decide about a claim before the other party has shown their hand, and I also think it's possible for you to ask your insurers what difference the accident would make to your premium and claim for this difference too. Not sure about that, though.
Trevelyan said:
I think our biggest fear was what the other driver might try and claim. I'd guess he'd be claiming on Royal Mail fleet insurance so would probably have nothing personally to lose by whacking in a huge claim.
As far as I am aware Royal Mail's fleet is so large that they self insure themselves via a substantial bond lodged on deposit to cover issues every year. Any claim will be dealt with directly by Royal Mail with disputed issues outsourced to a loss adjustor.McSam said:
As I understand it, the 50/50 split refers simply to the blame, and that each insurer will cover their own party's costs.
That's not my understanding. I thought that if blame was apportioned 50:50 then costs are split 50:50 as well.I.e. Person A has £4k costs, person B has £16k costs. Total is £20k, and therefore each insurer pays £10k.
If a Ferrari and a Fiat have a crash where blame is 50:50 (i.e. equal blame between the two parties) then it makes sense that the costs are borne in line with the blame? Not sure why the value of the vehicle would make a difference to the apportionment of the costs of repair?
If you have paid or benefit from legal expenses cover under your motor policy then generally insurers will notify one of their panel solicitors on your behalf, these solicitors will then contact you in repsect of any uninsured losses which you have suffered (losses incurred but not covered on your motor policy).
In your case this appears to be the excess and the right to claim damages for any injury suffered. If the claim is settled on a 50/50 basis (which is the general outcome for a narrow lane collision as it is difficult to prove beyond reasonable doubt who is at fault) then you are entitled to recover 50% of any losses you have suffered.
Knock for knock is a term which people use but this is something which is not practised and hasn't been for many years, the reason being is that if a mMni collided with a Rolls Royce for example the potential claims costs would be hugely disproportionate if it is deemed that each party is equally to blame.
The reality is that your insurers would be entitled to recover 50% of their costs against the third party and vice versa. They will prejudice your no claims discount and this will also happen to the other party. The full cost of the claim will be 50% paid out to you and whatever is paid out to the third party which will be 50% of their losses.
You could decide to reimburse claims costs if financially it is beneficial to do so but it would appear unlikely unless no claim is brought by the third party.
I know where you are coming from with regards the claims culture and the spurious claims do have an effect on bumping all our premiums up however if your other half is genuinely injured and suffering discomfort then she is entitled to be compensated for it. Additionally what may only seem like whiplash might be masking other injuries such like spine/disc troubles, even a low speed bump can jolt people awkwardly and I would recommend her getting checked out fully even if no claim is submitted.
I hope that this makes sense and isn't too much of a ramble. I have a claims background in insurance and have worked as a motor underwriter so I have seen it from all angles.
The main thing is not to be out of pocket but most importantly that any injuries heal fully.
In your case this appears to be the excess and the right to claim damages for any injury suffered. If the claim is settled on a 50/50 basis (which is the general outcome for a narrow lane collision as it is difficult to prove beyond reasonable doubt who is at fault) then you are entitled to recover 50% of any losses you have suffered.
Knock for knock is a term which people use but this is something which is not practised and hasn't been for many years, the reason being is that if a mMni collided with a Rolls Royce for example the potential claims costs would be hugely disproportionate if it is deemed that each party is equally to blame.
The reality is that your insurers would be entitled to recover 50% of their costs against the third party and vice versa. They will prejudice your no claims discount and this will also happen to the other party. The full cost of the claim will be 50% paid out to you and whatever is paid out to the third party which will be 50% of their losses.
You could decide to reimburse claims costs if financially it is beneficial to do so but it would appear unlikely unless no claim is brought by the third party.
I know where you are coming from with regards the claims culture and the spurious claims do have an effect on bumping all our premiums up however if your other half is genuinely injured and suffering discomfort then she is entitled to be compensated for it. Additionally what may only seem like whiplash might be masking other injuries such like spine/disc troubles, even a low speed bump can jolt people awkwardly and I would recommend her getting checked out fully even if no claim is submitted.
I hope that this makes sense and isn't too much of a ramble. I have a claims background in insurance and have worked as a motor underwriter so I have seen it from all angles.
The main thing is not to be out of pocket but most importantly that any injuries heal fully.
Edited by Haribo Man on Thursday 19th April 16:35
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