Cash For Crash? Don’t Believe The Hype!

Do Accidents NEED Managing?: the Facts Behind the Scandal.

Accident management companies are greedy unscrupulous companies profiting from people's misfortune and sending insurance premiums rocketing. Isn't that what the media has told you? Recent reports such as The Cash for Crash Conspiracy article in the Daily Mail and the BBC Panorama programme The Great Car Insurance Swindle among others (see Editors Notes) send out clear messages about accident management companies and personal injury solicitors and the lengths they will go to. The insurance companies and even the Police don't emerge unscathed either. But is it really that simple?

There are a lot of cowboys out there, you can't deny that, but is it a fair statement to say that ALL accident management companies are bad news? Perhaps not. It's important that people know that there is a side to accident management that is not only in a different league to the kinds of company the media pillories but is in fact providing a valuable and legitimate service: a service for which there is a genuine need.

The kind of companies featured in these media campaigns give everyone a bad name. Their only objective is to work the system and make a quick buck. A lack of regulation, and even participation by insurance companies and the Police, has allowed this industry to boom. Aside from the clearly criminal actions of those causing accidents to profit from the process (a different issue entirely), the activities of these companies is entirely legal. However, it has reached such a stage that the government has recognised the need to take action and properly regulate the industry.

At last! There is definitely a need for more regulation and more clarity on the law. Companies should have to become accountable for their actions. They should have to abide by the rules, not only in terms of the letter of the law but in adopting a code of best practice.

Why Do Accidents Need Managing?

You may think you know what the role of an accident management company is but have you considered the value of the service to the victims of accidents? There needs to be some clarity on the service that accident management companies provide and an explanation on why accidents need managing. Most of us would assume that when you have an accident it's down to the insurance company to sort everything out isn't it? If you have an accident and it is your fault then yes, you need to involve your insurance provider. The industry we're talking about here is concerned with 'non-fault' accidents; accidents that occur where the driver is not at fault.

Even though the driver was not at fault there could be a number of issues that need dealing with, starting from there at the scene. Their car may be damaged and need to be recovered, they may be injured, possibly even unable to work for a period, they might need a replacement car and they will need your car to be repaired. They have 3 options. They can involve their insurance company, they can sort it out themselves or they can call an accident management company. Sorting it out personally can be very time consuming, expensive and complicated - you really need to know what you're doing.

Calling their insurance company seems like the most obvious thing to do and in fact that is what most of us do but beware! Even if the accident is not their fault, going through their insurance company can prove expensive and be very frustrating. They may be required to pay out up front for things like your excess, car hire, repairs, recovery and storage of the vehicle etc. These may be costs that can be claimed back once the 'at-fault' party's insurance company has paid out but this could take months. Their premiums could go up even though it wasn't their fault. The damage to their vehicle would be subject to the insurer's rules so they have no choice over who assesses it or repairs it. This could lead to inflated repair costs or a low valuation should the car be written off. Any repairer that the insurance company uses has an alliance with the insurance company and will be looking after their interests - not the driver's. Also, as has been reported in the media, some insurers will sell their data to personal injury solicitors without their consent.

The alternative is an accident management company. An accident management company's role is to assist drivers in dealing with all the issues involved in having an accident that was not their fault. A good accident management company will manage all these issues on their behalf without cost to them. That includes recovery and repair of their vehicle, arranging a like-for-like replacement vehicle (a courtesy car arranged by their insurance company could be any type of vehicle so even if the driver's own car was a family saloon they could be expected to ferry the kids around in a Fiat Panda for the duration!) and management of any personal injury claims. A legitimate, responsible accident management company will not bully anyone into making a personal injury claim and would only claim for genuine injuries sustained. If the driver, or any passengers, has a genuine injury sustained in an accident then they have a legal right to claim and this could cover a range of things such as loss of earnings, medical expenses, travel expenses etc as well as compensation. The accident management company would handle all this on their behalf and recover the costs from the 'at-fault' driver's insurance company. In short, the way they add value is as follows:

They work for the victim, not the insurance company, therefore they have their interests at heart

Independent valuations and assessments on vehicles

No cost to the victim at any time

The option of claiming for personal injury (but no obligation) conducted on a no win no fee basis

Central management of all these issues, saving time and potentially a lot of hassle

No risk to insurance excess, no claims bonus or cost of premium


So Why The Bad Press?



As stated earlier, there are lots of accident management companies out there playing the system and making a lot of money: pushing people into making claims, over exaggerating claims, selling data, exchanging big referral fees etc. It is these types of company that gives us accident management companies a bad name.

What Is The Future Of Accident Management?

Increased regulation is definitely coming and this is what the industry needs. In a few years time only the legitimate few accident management will remain. By getting rid of the unscrupulous operators the public's confidence in those that are providing a valuable service will increase.

Balance in the Media

We've heard the dirty side: the 'compensation culture', the 'ambulance chasers' but does the media ever report the responsible side? The side that is helping people who are victims and need someone on their side? It's about time for some balance.

RTR is an accident management company based in Barnsley, South Yorkshire. As well as providing a range of accident management services the company also offers unique pay as you go roadside breakdown cover which is available to individuals and commercial customers. www.rtruk.co.uk