Having a motor accident, making a claim, choosing your repairer
If you have an accident in your vehicle it can be devastating. Of course, it is even worse if you are injured and/or you have to deal with an insurance company being difficult. In this post Tim Kelly of Motor Claim Guru tells you what you need to know about the cover you should take out and what the insurance company legally can and cannot do.
Making the claim with the insurance company
Dealing with an accident can be intimidating, especially when your vehicle is your “pride and joy” and you don’t want just anyone to do the work on it! How best to claim? Where do you start? Can you use your own choice of repairer?
How to start making a claim on insurance
You might think your issue started with the accident, and you start there and make a claim but it starts at your Insurance policy. Third party fire and theft used to be very prevalent, now it’s not so much. If you have that type of policy, you could not claim for damage to your own vehicle irrespective of fault.
If it was not your fault, you would need to use your “Uninsured Loss Recovery” (ULR), more commonly known as “legal assistance” or a claims / accident management company.
Most people have “fully comprehensive” insurance, allowing you to claim for damage to your vehicle, as well as protecting you from claims by others against you.
So, read the contract, to determine what your contract of insurance states.
The “Approved repair network” Issue!
Insurers will try and direct you to their own “approved repair network”. “Approved”, in this case, just means the repairer has agreed to work at very low labour rates for the insurer, NOT that you are guaranteed a high-quality repair.
Many of these repairers are brilliant, many are not. These repairers get forced to provide the courtesy car for free to you (the insurer never provides it) and “MAY” get told that they MUST use “second hand” or “non original parts” in the repairs of your vehicle by the insurance company.
YOU as the owner of the car, have no control over how your vehicle is repaired.
Does the insurer have your best interests at heart?
There are legal obligations under the Financial Conduct Authority (FCA) rules governing insurance that providers “MUST” act in the best interest of the customer (ICOBS 2.5-1)
https://www.handbook.fca.org.uk/handbook/ICOBS/2/?view=chapter
However, they rarely do.
Your legal right to choose your repairer
The vehicle is your property, so you can choose who repairs it.
The customer’s entitlement to choose who repairs their vehicle is covered under the following Acts:
Consumer Rights Act 2015. (CRA) It could be considered an unfair contract term that you have to use an Insurer’s approved repairer.
Consumer Protection from Unfair Trading regulations 2008 A general ban – on conduct below a level which may be expected towards consumers (honest market practice/good faith).
Application part 8 of the Enterprise Act for unfair trading regulations 2008
Motor vehicle Block exemption regulations EC1400/2002
The Competition Act 1998 – this bans anti-competitive agreements between businesses
Commission Regulation (EU) 461/2010
What the unfair contract terms mean regarding insurance
As a customer, if an insurer advises that an increased excess is applicable if you choose your own repairer, this may breach the Consumer Rights Act 2015 and the Consumer Protection from Unfair Trading Regulations 2008. You should say this to your insurance company
The insurer may try and argue that this increase in excess is part of the contract and that you had 14 days to cancel the contract. It is irrelevant that you could have cancelled the contract within 14 days, as the term or condition would still be unfair and the above Acts apply.
Knowing your consumer law is a powerful tool.
The Barriers to choosing your own repairer!
You will often be told that you cannot choose your own repairer. Actually, you always have the legal right to choose. Insurers can frequently place barriers in front of you to try and stop you.
They may advise you that “You are not entitled to a courtesy car if you choose your own repairer”. However this is sleight of hand by the insurer. As mentioned above, the insurer never provides the courtesy car, their repairer does, at their own cost. It is highly likely your own bodyshop will also provide a courtesy car when repairing yours.
The insurer might then try to refuse to provide insurance for this courtesy car. I advise forcing the issue with them, as they are legally not allowed to put barriers in place of having a contract fulfilled.
It might be easier to find a temporary cover provider.
When things go wrong with the vehicle repair
The insurer may tell you that they cannot guarantee the repair.
When making an insurance claim and repairs are defective, the first thing is to advise both the body shop and the insurer that you are rejecting services under the CRA 2015. Things do get more complicated in specific situations, but in general, if your insurer has authorised repairs with that repairer, as your contract is with the insurer, it is up to them to resolve your complaint.
Further barriers an insurance company may put up
They REALLY do not want you to have your own way, do they?!
Increased excess for your vehicle
You might well find your insurer will advise you will have an increased excess if you choose your own repairer.
Just because something is in your contract, does not mean that it is enforceable. So, challenge it! And, of course, you should look to switch your provider every year anyway. See How to save money on your car insurance.
The rise of car insurance in 2023 and how to reduce it
“We will only pay what it would have cost at our approved repairer”
They “will“ / “may” advise that you are liable for any cost over and above what it would cost at their own repairer. This is to scare you. The contract of insurance is about providing “financial indemnity” for the financial loss that has occurred.
Choose your own repairer, ensure that the vehicle is put back to the state intended by the manufacturer.
Do not be scared of challenging your insurer at any stage of the claim.
Personal Injury and Whiplash Claims
There is an online portal for Personal Injury (PI), called “Official Injury Claim”. This is for whiplash only and is not very user friendly. Anything other than that should be dealt with elsewhere. It can get very complicated, dependent on the value of the claim submitted. You then need specialist knowledge of law in PI Claims, and if pursuing an uninsured loss, a comprehensive knowledge of tort law.
Your insurer will NEVER claim for PI, as it is not an “insured” loss. It is an “un-insured” loss, hence the need for legal cover OR the use of a solicitor or claims management company.
Under the reforms introduced by Lord Justice Jackson in 2013, the threshold for claims was increased up to £5,000, meaning that you cannot recoup your legal fees for any claim less than £5,000.
Whiplash cases now pay out around £650 per claim.
Over £5,000, you can claim legal fees but you will then probably need either legal insurance to pay your solicitor up front or enter into a Conditional Fee Agreement.
Conclusion
Insurance of all kinds can be difficult to navigate. However, knowing your rights both before you choose it and when you make a claim puts you in a better position in the driving seat!
About Tim Kelly
Tim Kelly is a highly qualified Independent Engineer (MSOE, MIRTE, CAE, Associate IMI,Former member Qualified through the Institute of Automotive Engineers Assessors as M.IAEA, Former F.I.E.A, Eng Tech through IMI, Eng Tech through Society Of Operation Engineers) with over 30 years’ experience as an Engineering Assessor of damaged vehicles. He is a former director of the Institute of Automotive Engineer Assessors and is a past council member. He is also a former member of the Fédération internationale des Experts en Automobile.
He is a Member of the Society of Operations Engineers, Member of the Institute of Road Transport Engineers, Certified Automotive Engineer, Eng Tech, Associate of the Institute of the Motor Industry.
He has expert knowledge of the insurance industry, the law relating to it and is recognised in court as a qualified and experienced professional witness.
Tim Kelly started the website Motor Claim Guru after spending many years advising friends and family, as well as offering support on various car forums. He realised there was a need to educate the consumer around the minefield of motor insurance.
Find more about Tim and MotorClaimGuru
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