Accident management companies can help organise car insurance claims, from roadside recovery and a replacement car to repairs, and may communicate with insurers where needed [1]. The level of support depends on your eligibility and the circumstances of the accident.
Key takeaways
- Accident management companies provide practical support when you’ve been in an accident that wasn’t your fault – a ‘non-fault’ incident. Some also help if you were ‘at-fault’.
- Accident management services typically include arranging vehicle recovery, repair and a replacement vehicle.
- Using an accident or claims management company, rather than claiming on your own policy, could mean you avoid paying an excess and risking your no-claims bonus, subject to eligibility. You should still inform your insurer [2].
- Costs are typically paid by the at-fault party’s insurer, unless disputed, in which case you could become responsible for some or all charges [3].
- Accident management companies don’t replace insurance companies; they work alongside them and are subject to Financial Conduct Authority (FCA) claims management regulations [4].
What is an accident management company?
An accident management company offers practical support for non-fault drivers after a road traffic accident [5].
They coordinate the process, from taking the details to arranging repairs and seeking to recover costs from the at-fault party’s insurer.
They are not insurers and do not provide insurance cover. Instead, they can arrange support through third parties such as car hire agencies and body shops, who may speak to insurers where needed, allowing you to focus on your wellbeing.
What services do accident management companies provide?
Depending on the individual circumstances of your accident and your eligibility, accident management services typically include:
- Taking details of the accident then open a case file [6]. These usually include the time, date and location of the accident, the other vehicle’s registration and the driver’s name, address, contact and insurance details.
- Gathering evidence such as photos of the damage as well as the vehicles and their positions following the collision, any dashcam footage and witness statements.
- Vehicle recovery and storage if yours can’t be driven.
- Replacement vehicle if yours isn’t drivable. This is usually a like-for-like hire car provided on a credit hire basis, with the hire company seeking payment from the at-fault insurer. If there are disputed or unrecovered charges under the agreement, you could become responsible for some or all of these.
- Vehicle repair, including sourcing estimates and arranging the repair with an approved garage.
- Support with car insurance claims, with working partners such as a recovery company, repairer or hire company following up with insurance companies where needed.
The step-by-step accident management journey
Below is how accident management companies work when handling an eligible non-fault accident.
- You report the accident. You can contact an accident management company before you notify your insurer, although you may still need to notify your own insurer, depending on your policy terms.
- They assess your claim. The company considers who is at fault and your claim’s eligibility.
- The company arranges vehicle recovery and gathering evidence.
- They arrange a like-for-like replacement vehicle, if needed and where eligible.
- They coordinate estimates and repairs. If you arrange any repairs, keep copies of the estimates and itemised invoices with parts, labour and VAT clearly separated.
- They look to reclaim costs from the at-fault party’s insurer. If liability is not accepted or disputed, this stage may take longer and you could become responsible for some or all charges.
How accident management differs from making a claim through your insurer
Who deals with the claim. Car accident management companies, through their working partners such as a recovery company, repairer or hire company, seek to recover costs from the at-fault driver’s insurer, while insurance companies process claims through your policy.
Policy impact. As long as you’re eligible, using an accident management company may help you avoid paying an excess and may reduce the risk of affecting your no-claims bonus. Depending on the outcome, claiming on your insurance may lead to increased premiums, even after a non-fault accident.
Replacement vehicle. Accident management companies may be able to arrange a like-for-like credit hire car, subject to eligibility, if yours is off the road, rather than the standard courtesy car usually offered by your insurer.
When can you use an accident management company?
If you’ve been in an accident that wasn’t your fault, you may want to use an accident management company if:
- You want someone to help you through the process.
- You want someone else to arrange recovery and coordinate the repair of your vehicle.
- You want a like-for-like replacement vehicle.
- You’re not confident you’ve got the correct information from the other driver or they’re uninsured [7].
- You want to avoid using your own insurance and the risk it may affect no-claims bonus.
- You don’t have the time or energy to coordinate repairs and paperwork yourself.
It’s important to remember that accident management companies don’t all offer the same services, and using them may depend on your eligibility and the circumstances of the accident.
Common misconceptions
Accident management companies replace the need for insurance.
Not true. An accident management company is not an insurer. You still need valid insurance [8].
Accident management companies are expensive.
Again, not true. With eligible claims, costs are sought from the at-fault driver’s insurer. However, this can’t be guaranteed, as liability may not be accepted and you could become responsible for some or all hire or repair charges if costs are disputed or can’t be recovered.
There’s no need to tell your insurer about the accident.
While you don’t have to claim through your insurer, you do have to notify them of an accident.
How Claimsline supports eligible non-fault drivers
Claimsline can explain the options after a non-fault accident and, where appropriate, arrange support for eligible motorists through working partners such as a recovery company, repairer or hire company. Where liability is accepted or established, the hire company or repairer seeks the charges from the at-fault insurer.
Depending on the circumstances of your accident, and providing you’re eligible, Claimsline may arrange collection of you and your vehicle from the scene, organise a like-for-like replacement vehicle and coordinate the repair of your vehicle through a manufacturer-approved repairer. Any likely costs, terms and conditions will be explained before services are arranged.
Claimsline is independent of your insurer. You may still need to notify your own insurer, depending on your policy terms.
It all begins with you contacting Claimsline with the details of the accident – including the date, time and location, the other driver’s name, address and insurance details, the vehicle registration and the vehicle owner’s name and address if different from the driver’s. You can contact Claimsline at any time, day or night.
If liability is challenged or recovery is unsuccessful, you could become responsible for some or all charges under the terms you signed. Vehicle services may use credit terms. Claimsline is authorised and regulated by the Financial Conduct Authority in respect of regulated claims management activities (FRN 831196).
Frequently asked questions
Will using an accident management company affect my no-claims bonus?
It may not. If the other driver is at-fault and costs can be recovered from their insurer, your no-claims bonus is less likely to be affected, although this isn’t guaranteed.
Who pays when an accident management company is used?
Depending on the circumstances of the accident, and providing you’re eligible and the accident wasn’t your fault, costs are usually paid by the at-fault driver’s insurer. Before you agree, the repair or hire provider should set out the charges, credit terms and situations where you could become responsible for payment. You should keep hold of all signed vehicle hire agreements, repair estimates and costs, just in case.
Can motorbike riders and cyclists use an accident management company?
Potentially. Bikers and cyclists may be able to use an accident or claims management company, providing they’re eligible. Check with the company to see their criteria and which services are available.
Do I have to check with my insurer first?
No, you can call a car accident claims management company before your insurer. You may still need to notify your own insurer, depending on your policy terms. Check your policy to see when you need to do this.
Can an accident management company help if I’ve been injured?
If you’ve been injured, Claimsline’s personal injury guidance explains the options.
Are accident management companies regulated?
Yes. In Great Britain, claims management companies are regulated by the FCA.
In a nutshell
Being in an accident is stressful enough, without the hassle and cost of making a claim and getting your vehicle fixed.
Accident management companies provide practical support, which may include organising recovery, repair and replacement vehicles for eligible non-fault drivers, with working partners such as a recovery company, repairer or hire company speaking to the at-fault party’s insurer where needed.
Every accident is different. Providing the accident wasn’t your fault, you’re eligible and costs aren’t disputed, using an accident management company could save you time, stress and may mean you don’t need to pay an excess.
Sources
- Accident management companies can help organise car insurance claims, from roadside recovery and a replacement car to repairs, and may communicate with insurers where needed - https://www.rac.co.uk/business/news-advice/fleet-management/accident-management-companies
- Using an accident or claims management company, rather than claiming on your own policy, could mean you avoid paying an excess and risking your no-claims bonus, subject to eligibility. You should still inform your insurer - https://www.gov.uk/vehicle-insurance/if-youre-in-an-accident
- Costs are typically paid by the at-fault party’s insurer, unless disputed, in which case you could become responsible for some or all charges - https://www.financial-ombudsman.org.uk/consumers/complaints-can-help/insurance/motor-insurance/credit-hire-credit-repair-services-following-no-fault-accident
- Accident management companies don’t replace insurance companies; they work alongside them and are subject to Financial Conduct Authority (FCA) claims management regulations - https://www.fca.org.uk/firms/claims-management-regulation
- An accident management company offers practical support for non-fault drivers after a road traffic accident - https://www.citizensadvice.org.uk/consumer/insurance/types-of-insurance/vehicle-insurance/vehicle-insurance-if-the-accident-wasn-t-your-fault/
- Taking details of the accident then open a case file - https://www.mib.org.uk/learn-about-insurance/what-to-do-after-an-accident/
- You may want to use an accident management company if you’re not confident you’ve got the correct information from the other driver or they’re uninsured - https://www.mib.org.uk/
- An accident management company is not an insurer. You still need valid insurance - https://www.gov.uk/vehicle-insurance
