Two routes, two sets of risks
The Financial Ombudsman Service describes both options[2]. With the first, you claim on your own motor policy. Subject to your cover, the insurer arranges the repairs, or pays out if the car is written off, and some policies include a courtesy car. Your insurer may then try to recover its costs from the other driver's insurer. With the second, you use a separate company that can arrange recovery, repairs and a replacement vehicle, where eligible, outside your own policy. There are separate guides on what an accident management company does and how accident management companies work if you want the background. Both are meant to get your car fixed and keep you on the road. They go about it differently. The bigger difference is what happens to you if costs can't be recovered.
What claiming on your own policy looks like
Your policy terms decide what you get, and a guide to how the modern car insurance claims process usually runs gives the full picture. You will usually pay your excess, both the compulsory and voluntary parts, and often directly to the repairer. If your insurer later recovers its costs from the other driver's insurer, you may be able to get that excess back. That can take a while. A courtesy car may be offered if your policy includes one and one is available. It is often small, and usually only for as long as your own car is in for repair. Drive an estate or a seven-seater and it may well be a step down. You deal with your own insurer, which may then seek its costs from the other driver's insurer. Claim times vary, and some car insurance claims take longer to settle than others. The part people tend not to expect is the no-claims discount. If your insurer can't recover its costs from another party, the claim may be recorded as a fault claim, and that could affect your no-claims discount. That applies even if you are sure you were not to blame.
What using an accident management company looks like
It works the other way round. Instead of claiming on your own policy, you may be able to use a company that can arrange accident recovery, vehicle repair and a replacement vehicle, depending on liability and eligibility. Because you are not claiming on your own policy, you may not have to pay your excess upfront. Where you are eligible, you may be offered a vehicle similar in size or use to your own. Not everyone qualifies. Read the credit terms closely. Replacement vehicles and repairs may be provided on credit terms. Where liability is accepted or established, the hire company or repairer seeks the charges from the at-fault insurer. If liability is disputed or costs can't be recovered, you could become responsible for some or all charges. The terms should be explained to you before you sign anything. The hire company, repairer or recovery company may speak to insurers where needed. You still have to tell your own insurer about the accident. The Financial Ombudsman Service points out that credit hire and repair agreements are unregulated, and that the at-fault insurer may not cover the costs. What accident management services usually involve, and the complete guide to accident management, are worth a read alongside this.
Side by side
Every row below depends on your policy, on liability and on eligibility.
| Practical point | Claiming through your insurer | Using an accident management company | | :---- | :---- | :---- | | Who arranges repairs | Your insurer may arrange repairs through its approved garages, or agree to one you choose. | The repairer may carry out repairs, arranged through the company, where eligible. | | Replacement vehicle | A courtesy car may be available, depending on your policy and availability. | A replacement vehicle may be available on credit hire, if eligible. | | Policy excess | You may need to pay it, and may be able to recover it later if your insurer recovers its costs. | You may not need to pay it upfront, as you are not claiming on your policy. | | Contact with insurers | You deal with your insurer, which may seek its costs from the other driver's insurer. | The hire company, repairer or recovery company may speak to insurers where needed. | | If costs can't be recovered | Your policy terms, excess and any no-claims discount effect may apply. | You could become responsible for some or all charges, depending on the agreement. |
Deciding: liability first, then everything else
If you are asking "should I use an accident management company or go through my insurer?", start with liability, because most of the other answers hang off it. If the other driver accepts fault and there is good evidence, such as dashcam footage, costs may be easier to recover. If liability is disputed, think hard about what you could owe if the charges are not paid. Then be honest about what car you need. If you rely on an estate, a van or a seven-seater for work or family, check what each route may offer; a courtesy car, if your policy includes one, may be smaller than your own. Can you afford the excess right now? If not, compare how each route treats it, and what you could owe if costs are not recovered. Finally, open the policy. Check the reporting deadline, any courtesy car cover and whether you have legal expenses cover. Not telling your insurer could breach your policy terms, whichever route you take. For related reading, see your options with an insurer or accident management company and how cover and service compare. Three made-up situations show how this plays out. They are not recommendations.
- A driver is stopped at traffic lights in Manchester when another car runs into the back of them. The other driver admits fault at the scene, there is dashcam footage, and the driver needs a similar-sized car for work. Through the insurer, they may pay the excess and get a courtesy car if the policy includes one. Through an accident management company, a similar vehicle may be available on credit hire, if eligible, without paying the excess upfront. Even with good evidence, liability is not settled until it is accepted or established, so the credit terms still matter.
- Two drivers collide on a roundabout, each sure the other pulled on wrongly. Fault is often harder to judge in side-impact collisions. With fault unclear, this driver may want to check what the policy covers and what could be owed under a credit hire agreement if costs are not recovered.
- The third has light damage, a £500 excess and only needs a basic car while the repairs are done. They may compare paying the excess, and possibly getting it back later, with the credit terms of a hire or repair agreement. Which matters more depends on their budget and how comfortable they are with each set of terms.
Before you sign anything
Search results for accident management company UK services can look very alike. Ignore the headlines and compare the written terms. The first question is liability: what happens if the other driver's insurer rejects it, or simply does not pay? After that, the agreement should set out the daily rate for the replacement vehicle, and it should say whether you may be asked to help recover disputed charges, for example by giving a statement. Give accurate details of your mileage and what you use the car for; the credit hire myths guide explains why need matters. Ask who pays if your car is recovered or sits in storage, because daily storage charges can mount up while a claim is argued over. And check whether there is a cooling-off period, and whether any charges apply if you cancel. If you want independent accident management advice before you sign, Citizens Advice has consumer guidance on insurance problems.
Common questions
Do I have to claim through my own insurer? No. If you believe the accident wasn't your fault, you may be able to use an accident management company instead, if eligible; there is more on your rights after an RTA. Most policies require you to tell your insurer about any accident, even if you don't plan to claim. Check your policy terms. Will using an accident management company affect my no-claims discount? It depends on the insurer, the policy and the circumstances. The Financial Ombudsman Service explains that a fault claim is recorded when an insurer can't recover its costs from another party, and a fault claim may reduce an unprotected no-claims discount[3]. See also whether a non-fault accident affects your premium. Can I change my mind? Possibly, before you sign or repairs begin. After that you may have obligations or charges under the agreement, so check the cancellation terms. What is the one thing to check before signing? Who pays the hire charges if the other insurer disputes liability.
Next steps
If you have been in an accident in England or Wales that you believe wasn't your fault, safety comes first: if anyone is hurt, get medical help. If no details were swapped at the scene, the police still need to be told within 24 hours. Tell your insurer within the time your policy allows, whether or not you plan to claim on it[4]. Then gather evidence. Take photos, note the other driver's details, collect witness contact details and save any dashcam footage. If your car can't be driven, read how vehicle recovery usually works, and there is a fuller checklist on what to do after a car accident. Before choosing, think about mobility. Would a courtesy car be enough, or do you need something closer to your own vehicle? Compare the written terms, reading the sections on liability, vehicle repairs after an accident and recovering costs from the other driver before you sign. If you are still unsure which route fits, Citizens Advice can help, or you can seek independent legal advice[5].
How Claimsline can help
Claimsline is not an insurer or a solicitor. Where you are eligible and the service is available, Claimsline can arrange recovery, repair, a replacement vehicle or credit hire.
Replacement vehicles and repairs may be provided on credit terms. Where liability is accepted or established, the hire company or repairer seeks the charges from the at-fault insurer. If liability is disputed or costs can't be recovered, you could become responsible for some or all charges. The terms should be explained to you before you sign anything.
Most policies require you to tell your insurer about any accident, even if you don't plan to claim. Check your policy terms.
If you believe your accident wasn't your fault and want to understand your options, you can call Claimsline on 0333 006 8282.
Claimsline is authorised and regulated by the Financial Conduct Authority in respect of regulated claims management activities (FRN 831196).
References:
- Most policies require you to tell your insurer about any accident, even if you don't plan to claim. Check your policy terms - https://www.gov.uk/vehicle-insurance/if-youre-in-an-accident
- The Financial Ombudsman Service describes both options - https://www.financial-ombudsman.org.uk/consumers/complaints-can-help/insurance/motor-insurance/credit-hire-credit-repair-services-following-no-fault-accident
- The Financial Ombudsman Service explains that a fault claim is recorded when an insurer can't recover its costs from another party, and a fault claim may reduce an unprotected no-claims discount - https://www.financial-ombudsman.org.uk/consumers/complaints-can-help/insurance/motor-insurance/fault-claims-no-claims-bonuses
- Tell your insurer within the time your policy allows, whether or not you plan to claim on it - https://www.abi.org.uk/policy-and-guidance/general-insurance/personal-insurance/motor-insurance/how-to-make-a-motor-insurance-claim
- If you are still unsure which route fits, Citizens Advice can help, or you can seek independent legal advice - https://www.citizensadvice.org.uk/consumer/insurance/
