Cash for Crash? Don’t Believe the Hype!

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Are Accidents a Problem that Must Be Managed? The Scandal: The Facts.

Insurance premiums are rising because of greedy, unscrupulous accident management companies. What has the media been telling you? Recent reports, such as The Cash for Crash Conspiracy article by the Daily Mail and BBC Panorama’s The Great Car Insurance Swindle send clear messages about personal injury solicitors (and accident management companies) and the lengths they will go. Even the police are not spared by insurance companies. Is it really so simple?

You can’t deny the existence of many cowboys, but would it be fair to state that all accident management companies are bad news. Perhaps not. Perhaps not.

These media campaigns are a disgraceful portrayal of companies. They are only looking to make quick money by working the system. This industry has seen a boom due to a lack of regulation and participation by insurance companies as well as the Police. These companies’ activities are completely legal, except for the obviously criminal acts of those who profit from the process. It has reached a point where the government is recognizing the need to regulate the industry.

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At last! It is clear that there is a need to increase regulation and clarify the law. Companies must be held accountable for their actions. They must adhere to the rules. Not only should they follow the law according to its letter, but also adopt a code of best practices.

Why Accidents Must Be Managed?

Although you may believe you understand the role of an accident management firm, have you ever considered the importance of providing assistance to victims of accidents? It is important to clarify the services that accident management companies offer and explain why accidents must be managed. We assume that if you are in an accident, it is up to your insurance company to fix it. Your insurance company should be contacted if you are involved in an accident that is not your fault. This industry is focused on ‘non fault’ accidents, which are accidents that happen when the driver is not at fault.

Even if the driver wasn’t at fault, there may be other issues. They may have their car damaged or need to be repaired. There are three options. They have three options: they can contact their insurance company, or they can hire an accident management company. It can be time-consuming, costly and complex to sort it out yourself. You really need to know how you are doing.

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Although calling their insurance company may seem like the obvious thing to do, it is actually what most people do. But be careful! Even if they are not at fault for the accident, calling their insurance company may prove costly and frustrating. They might be required to pay upfront for your excess, car rental, repairs, storage, and recovery of the vehicle. These costs may be recoverable once the insurance company of the “at-fault” party has paid, but it could take several months. Even though they were not at fault, their premiums may rise. Their insurer will determine who repairs or assesses the vehicle’s damage. If the car is to be sold, this could result in high repair costs and a low value. The insurance company will have an alliance with any repairer they use and they will look out for their interests, not the driver’s. According to media reports, some insurance companies will sell personal injury lawyers’ data without their consent.

An accident management company is another option. A driver assistance company is there to help them deal with any issues that arise from an accident that wasn’t their fault. An excellent accident management company will handle all of these matters for them without any cost. This includes the repair and recovery of their vehicle as well as the arrangement of a replacement vehicle. (A courtesy car, which is arranged by their insurer, could be any type of vehicle. So even if their car was a family car they could still be expected to drive the children around in a Fiat Panda throughout the duration of the accident). Management of personal injury claims. An honest, competent accident management company won’t pressure anyone into filing a personal injury case. They will only make claims for actual injuries. A driver or passenger who sustains a serious injury in an accident can file a claim. This could include compensation for lost earnings, medical expenses, and travel expenses. The accident management company would take care of all of this for them and collect the costs from the driver at fault. The way they add value is simple:

  • They are there for the victim and not the insurance company. Therefore, they will always be in the best interests of the victim.
  • Vehicles are subject to independent valuations and assessments
  • There is no cost to the victim at all
  • Personal injury claims can be made, but not obligatory, on a “no win, no fee” basis.
  • All these issues can be centrally managed, which saves time and could potentially cause a lot more hassle.
  • There is no risk of excess insurance, no claim bonus or premium cost.
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Why the Bad Press?

There are many accident management companies that play the system, making lots of money by selling data, pushing people to make claims, exaggerating their claims, and exchanging large referral fees. These types of companies are what give accident management companies a bad reputation.

What’s the Future of Accident Management?

This industry is in dire need of increased regulation. Only the few legitimate accident managers will be left in a few years. The public will be more confident in the people who provide a valuable service if they are rid of unscrupulous operators.

Balance in Media

The ‘compensation culture,’ the ‘ambulance chasers’ are all well-known. But does the media report on the responsible side? Who is there to support victims who need help? It is time to find some balance.