Insurance firm wants to engage legal action to recover costs

My car was written off last year when an elderly gent pulled out in front because 'he didn't see me'. Nine months later, we have received paperwork from a firm of solicitors who have stated they intend to sue the other driver in our name.

The solicitors claim they are acting for our insurers who are suing the other driver because they say his insurance did not pay up enough for recovering and storing the car, etc.

My concern is that we are asked to engage the lawyers and the paperwork makes it clear that we will be liable for the legal bill should our insurers withdraw legal funding, for any reason. Worse, we would be at fault if we did not comply with their demands and we could be refused insurance or subject to increased premiums. We personally lost no money and this does not seem to be our argument. Is this just another way of squeezing money?

Asked on 3 October 2016 by Robin Morgan

Answered by Honest John
Simply refuse to sign anything. This is an accident management company that may or may not be working on behalf of your insurers (something you should check), but it is not up to you to engage the solicitors or incur any liability for them. You should report the firm of solicitors to The Law Society, to The Financial Services Ombudsman and to The Information Commissioner.
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