Is your car your pride and joy, or are you ready for a change? Let us know and you could win a £300 John Lewis voucher | No thanks
Ask a Question

Do accident management companies seriously inflate repair costs for minor accidents?

A colleague of my father's BMW 320d was recently hit in the rear by another driver, whilst he was stationary. The damage was a dented rear bumper and a cracked light cluster. I was very surprised to hear that he'd been in touch with Helphire, who are providing him with a new BMW 320d to play around in for the duration of the repairs. I have a bet with him that the repair will take at least a week, despite the fact that the bumper will be ordered pre-painted or painted before fitting, and that fitting the bumper and the light cluster will together take about two hours, so there's no need for the car to be off the road for longer than a day. What surprises and enrages me, however, is that he was referred to Helphire by his own insurer when he rang to report the accident. He repeatedly told them he didn't want credit hire, but they wouldn't let him do anything about it. They got really arsey when he tried to make an ordinary claim.

What also surprised me was that my father has been searching for insurance for his Nick Froome-bought W124 estate. He had to declare one of my accidents (someone ran a red light a few years ago and hit my W124). Since then he has been inundated with calls from various companies asking if he wants to make a no-win-no-fee claim. Is there any point in reporting this to someone? If so, to whom?

Asked on by

Report them to the claims regulators:;;

What is happening is that most insurance is in fact brokered. Many of the big names are actually brokers, not insurance underwriters. Often, their Private Equity Find investors also own accident management companies and credit hire operators. So when you have a prang they get at least three bites of a very lucrative cherry: 1: commission from the insurance underwriter for selling you the insurance. 2: commission from the accident management company (or income the accident management company takes as its cut for whatever it can extract for a spurious injury claim). 3: commission from the credit hire car rental company (or income from the credit hire of a car for an extended repair).
Similar questions
I recently bought a new Fiat 500C. My query is that, amongst the huge amount of paperwork I received, I am encouraged in the event of an accident to contact 'Fiat First'. The garage where I bought it (Glyn...
Is it any wonder car insurance is so expensive? A couple of days ago, my wife had a 50/50 door mirror clash on a narrow country lane. Both mirrors were broken but there were no other damage or injuries....
I have been trying to resolve an insurance claim for uninsured losses via a policy with the XXX. Under the terms of the policy they were to recover my losses after a major road accident, involving myself...
Related models
Decent rear wheel drive handling. Some status. Wide choice second-hand.
The best estate car of its day.

Ask Honest John

Value my car

Amount to borrow
Sorry. The minimum loan amount is £1000
To pay back over

My credit score

Best available rate 9.20%

Total repayment £8,930.17

Total cost of credit £1,430.17


48 monthly payments

Apply now

Representative example

Borrowing £7,500 over 4 years with a representative APR of 25.4%, an annual interest rate of 25.4% (Fixed) and a deposit of £0.00, the amount payable would be £239.77 per month, with a total cost of credit of £4,008.96 and a total amount payable of £11,508.96.

CarFinance 247 Limited is acting as an independent credit broker

Universal Square, Devonshire Street North, Manchester, M12 6JH