Claiming on car insurance

[siadwell]

Last week, a lorry driver decided to remodel the back of my car in stop-start traffic on the motorway.

I am insured fully comp with Bell Insurance and phoned them up to start the claims process. After taking all the details of the incident, they transferred me to a sister company (Albany Assistance) to arrange repair and a hire vehicle for me to use whilst mine was in dock.

This sister company referred me to their car hire subsidiary (Albany Car Hire) and basically I have to take out a credit agreement with Albany Assistance so that they will loan me the money to pay the car hire and repair companies. I am then expected to repay the loan when the other party's insurers cough up.

I'm sure I've never come across such a convoluted process whenever I've claimed in the past with other insurers. Has anyone else come across a similar arrangement with another insurer? Are there any potential pitfalls to watch out for?

 

[wafflycat]

Sounds like you could get stung for the dosh at some point in the future.

 

[Mr Pig]

That's all new to me, I've never heard of anything like that before.

 

[killiekosmos]

I'd be very wary of this. If anything happens that means other party don't pay up then you are stuck with the loan.

A few questions: does your own insurance entitle you to a hire car? Or is it the case that you want one at the expense of other party?

Why should you borrow money to get your car fixed if you have fully comp cover?

I'd have expected my insurers to fix my car and give me a hire car and they would claim on other party.

As they want you to take out a credit agreement, what if you failed the credit check?


I'd go back to your insurers and ask them to fix this directly not to pass you to others.

 

[Plax]

Nor me, I'd go back to the original insurers and see what they have to say. I'd fully expect the other parties insurance company to pay for the car hire and repair.

 

[amnesia]

I have worked in the (car) insurance industry for 13 years... I have never heard of anything so convoluted. The company I work for would sort it all out for you

If the accident wasn't your fault, which if someone went into the back of you it invariably isn't (unless you changed lanes etc), then your insurance company should sort EVERYTHING out for you. That's the reason you pay for fully comprehensive cover.

No way would I sign a credit agreement for a hire car... it's not your problem.

Try these guys if you get no joy from your insurer... http://www.financial-ombudsman.org.uk/


Daniel.

 

[purplepolly]

Are there any potential pitfalls to watch out for?

Yes, don't insure your car with a either a cut cost insurer or one described as "mainly targetting male drivers with low no claims bonus" (wikipedia on Bell). Both will be looking to keep costs down in the claims process, the former because income is low, the latter because they expect a lot of claims so outgoings are high.

 

[Archie_tect]

...bit late pp.

Don't enter into any third party contractual loans or sign credit agreements whose contract you are specifically and solely responsible for.

Fingers crossed Siadwell and thanks for the warning.

 

[purplepolly]

...bit late pp.

for future reference