Key takeaways
- Costs are often arranged on credit terms, and the provider seeks them from the at-fault insurer where liability is accepted or established.
- If costs can't be recovered, you could become responsible for some or all charges.
- Storage charges can build daily, so ask how they are managed.
- Ask for the terms in writing before you agree.
How are recovery, storage and repair costs usually arranged?
After a crash, you may need accident recovery, somewhere to keep the car and a repair. Vehicle recovery explained and our guide to vehicle repairs after an accident go into more detail on those steps. Who arranges each one, and who pays, depends on the route you take. If you use your own insurer's route, your policy terms apply, including any excess. Comparing that route with an AM company is covered in insurer or accident management company and accident management company vs insurance. If you use an accident management provider, you may not have to pay upfront, depending on liability and eligibility. If costs can't be recovered, you could become responsible for some or all charges. The table shows how this usually works for vehicle recovery after accident, storage and car repair after accident.
| Service | Who usually arranges it | Who may seek the charges | When you might be liable | | :---- | :---- | :---- | :---- | | Recovery | You, your insurer, or a recovery company at the scene | The recovery company | If liability is disputed or costs can't be recovered | | Storage | The recovery company or the storage provider holding the car | The storage provider | If the car stays in storage while liability is decided and costs can't be recovered, or if charges are not reasonable | | Repairs | You, your insurer or the repairer | The repairer | If liability is disputed, costs can't be recovered, or the terms you agreed make you responsible |
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. Each provider seeks its own charges, not Claimsline. The hire company, repairer or recovery company may speak to insurers where needed. Claimsline can explain the options and, where appropriate, arrange support. Hire costs have their own rules and are covered in separate credit hire articles, including credit hire myths. The terms should be explained to you before you sign anything.
When might the at-fault driver's insurer pay these costs?
In a non fault accident claim, the at-fault driver's insurer may pay for costs if liability is accepted or established.
- Accepted means the insurer agrees its policyholder was responsible.
- Established means it has been decided another way, for example by a court or an agreed outcome.
Believing the accident wasn't your fault is not the same as liability being accepted. Disputes are one reason some car insurance claims take longer. Even then, the insurer may question the amounts. For example, it may query how long the car was stored or whether a repair was needed.
A common misunderstanding: "the other side pays"
Many drivers hear that "the other side pays" after a crash they believe wasn't their fault, and assume they have nothing to worry about. For example, a driver might agree to have their car stored while liability is decided. Months later, the other insurer may dispute liability or argue the storage charges were too high. If this happens to you, ask who is responsible if costs are challenged, get the terms in writing, and keep records of dates and daily rates.
When could you become responsible for charges?
You could become responsible for some or all charges if:
- Liability is disputed and the outcome goes against you
- The other insurer accepts only part of the claim, or disputes the charges as unreasonable
- Your own policy terms apply, such as an excess
- The agreement you signed makes you responsible for charges that can't be recovered
To be on the safe side, don't assume the other side will pay. Ask what happens if they don't.
What happens to costs if liability is disputed?
A dispute over liability does not automatically stop charges from building up. For example, storage charges may continue while the claim is being investigated and liability is resolved. Depending on the terms you agreed to, the recovery company, storage provider or repairer may still seek payment from you if they are unable to recover their costs from the other party or their insurer. It's important to check the agreement carefully so you understand what costs you may remain responsible for. If you are unhappy with how your own insurer handled things, the Financial Ombudsman Service explains how to complain[1]. The modern car insurance claims process is a useful overview if your claim stalls. For a disputed claim, consider seeking independent legal advice, as the process differs between England and Wales, Scotland and Northern Ireland.
How can you keep storage charges under control?
Mitigation means taking reasonable steps to keep costs down. The provider may not be able to recover costs that are not reasonable from the at-fault insurer, which could leave you with the difference to pay. To protect yourself, you can: 1. Ask for the daily storage rate and the date charges started. 2. Find out where the car is and who is holding it. 3. Ask when the car will be assessed and when a repair decision will be made. 4. Ask whether the car can be moved if cheaper or more suitable storage is available. 5. Keep a record of dates, calls and quotes.
What should you ask before agreeing to any service?
Before agreeing to any accident management services, you should ask: 1. Who is providing it: the recovery company, storage provider or repairer? 2. What will it cost, and how is it charged? 3. Is it on credit terms? 4. What happens if liability is disputed or costs can't be recovered? 5. Who seeks the charges, and from whom? 6. Will you get itemised invoices? 7. Can you have the terms in writing? The terms should be explained to you before you sign anything. Under the Consumer Rights Act 2015, a service you pay for must be carried out with reasonable care and skill[2]. Whether an agreement counts as credit under the Consumer Credit Act 1974 depends on its terms[3]. If you're unsure, seek independent legal advice.
Frequently asked questions
Do I have to pay anything upfront? You may not have to pay upfront, depending on liability and eligibility. If costs can't be recovered, you could become responsible for some or all charges. Ask what you would be expected to pay, and when, before you agree. What if my insurer has already recovered my car? Your policy terms apply, including any excess. Most policies require you to tell your insurer about any accident, even if you don't plan to claim. Check your policy terms. Ask your insurer who is paying for storage and repairs. If you believe the accident wasn't your fault, your insurer may seek its costs from the at-fault insurer. The Association of British Insurers explains how motor insurance works and how to make a claim[4]. Can storage charges keep building while liability is decided? Yes, storage charges can build daily. Where liability is accepted or established, the storage provider 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. Make sure you ask how storage is being managed. Will I see the invoices? You can ask for itemised invoices and a copy of the terms. The provider may send invoices to the other insurer rather than to you, but you can ask for copies. If you don't understand a charge, ask before you agree.
Your next steps
Knowing the costs before you agree is the most useful thing you can do while liability is decided: 1. Tell your insurer about the accident, in line with your policy terms. 2. Find out where your car is, who holds it and what the storage rate is. 3. Ask for the terms in writing, and read what happens if costs can't be recovered. 4. Keep records of dates, quotes and invoices. 5. If liability is disputed, consider seeking independent legal advice. You don't have to decide everything at once. Taking the time to ask these questions first means you know who may seek each charge, and when you could be responsible.
How Claimsline can help
Claimsline is an accident management company for drivers who believe their accident wasn't their fault. Claimsline can explain the options after a non-fault accident and, where appropriate, arrange support through working partners, who may speak to insurers where needed.
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.
You may still need to notify your own insurer, depending on 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
- If you are unhappy with how your own insurer handled things, the Financial Ombudsman Service explains how to complain - https://www.financial-ombudsman.org.uk/consumers/complaints-can-help/insurance/motor-insurance
- Under the Consumer Rights Act 2015, a service you pay for must be carried out with reasonable care and skill - https://www.legislation.gov.uk/ukpga/2015/15/contents
- Whether an agreement counts as credit under the Consumer Credit Act 1974 depends on its terms - https://www.legislation.gov.uk/ukpga/1974/39/contents
- The Association of British Insurers explains how motor insurance works and how to make a claim - https://www.abi.org.uk/policy-and-guidance/insurance/personal-insurance/motor-insurance/how-to-make-a-motor-insurance-claim
