Is It Worth Going Through an Accident Management Company?

If you have been in a car accident recently, you probably have a lot on your plate with insurance claims, getting your car fixed, and maybe even dealing with stress from your injuries. You might come across the option of using an accident management company in the middle of all this chaos. But is it worth going through an accident management company? Let’s go through this write-up and find the answer in detail.

You will get to know what they do, how they work, the pros and cons of accident management companies, whether accident protection plans are worth it, and if they are the best decision for you.

What Do Accident Management Companies Do?

After a car accident, an accident management company handles all the paperwork and legal difficulties that come up. These companies take care of everything, from reporting the accident to fixing the car and dealing with any legal claims that may arise.

Accident management companies make it easier for organisations, especially those with fleets, to handle multiple claims, reduce downtime, and get employees back on the road as early as possible.

From collecting evidence, including medical records and witness testimony, filing a claim for damages against the third party, providing legal representation, and going to court on behalf of the claimant, if necessary, accident management companies do it all for you.

How Do Accident Management Companies Work?

When you contact an accident management company, they take care of every step of the claims and repair procedure to take the burden off your shoulders. Let’s learn about how they do their jobs:

Collect Details of the Accident: After an accident, when you call the accident management company and give them information about what happened, they provide immediate assistance and gather all necessary details of the accident for the claim.

Arrange Vehicle Recovery: The claims management company will arrange a quick recovery of your vehicle from the accident scene to avoid further damage to the car, and they will make sure it is repaired by an authorised shop or garage.

Offer a Replacement Vehicle: To keep your business running smoothly while your car is being fixed, the accident management company will typically give you a temporary replacement.

Help with Claims Management: They will take care of all communications with insurance companies and third-party insurers to process the claim efficiently. It includes handling claims for both the car and any personal injuries (if applicable).

Legal Help: Accident management companies will also help you with any legal claims, including uninsured loss recovery, personal injury claims, and other liabilities, to make sure that all costs and damages are recovered from the at-fault party, if applicable.

Well, as you want to understand if it is worth going through an accident management company, I think you must know the pros and cons of claims management companies. Right?

So, let’s dig into that now.

Benefits Of Using a Claims Management Company

First, I am enlightening you with the benefits to using a claims management company.

Stress-Free Claims Process

One of the main advantages that you can get from using a car accident management company is the convenience. The company will handle all correspondence with insurance providers, garages, and solicitors on your behalf. Therefore, you don’t have to make long phone calls or fill out a lot of paperwork.

Access to Expertise

A claims management company likely knows a lot of people in the legal sector and has dealt with similar personal injury claims in the past. So, if you utilise the skills of professional claims management services, it will be the greatest way to make sure you get the best counsel and hopefully the fairest compensation on your claim.

Getting the Best Result with Expert Claim Lodging

The Internet has made it easier for you to get information about car accident claims, but if you want to file a claim without professional help, it can still be hard to know where to start. Quality claims management companies know the exact claim process, what paperwork is required, and the legal timeframe for that.

It is very important in the legal field that all of the documentation is in order, all of the information is available, and everything is done on time. You should know that incomplete claims paperwork can have a big effect on the outcome.

Advice And Assistance

A claims management company will handle most of the paperwork and legal communications for your claim, but you may have questions. Any reputable company will advise and support you to ensure you understand what is happening and what is required. Some people consider this type of assistance via phone or email a blessing and worth their weight in gold.

Nothing is worse than filing a claim, waiting, and not knowing what is happening. Even if an initial compensation payment is offered to you that seems unfair, your claims management company will help you further to maximise it.

Apart from all these, you are also getting a replacement vehicle to carry on your business, cost recovery of uninsured losses, and faster and approved car repair services, as I mentioned earlier.

Disadvantages of Using a Claims Management Company

I think you should know the potential drawbacks of using a car accident management company as well, even when there are clear advantages. So, let’s check it out.

Credit Hire Complications

The third-party insurer might not pay the hiring charges if there is a dispute over who is at fault. This could mean you have to spend thousands of pounds on rent.

Pressure to Hire Their Repairers or Solicitors

Some accident management companies may force you to utilise their own body shops or solicitors, which limits your options.

Delayed Settlement

If your claim is complicated, especially when it involves disputed liability or injury, it can take longer to reach a settlement than it does to go through your own insurer.

Hidden Fees

Though most services are advertised to be free, there may still be hidden legal or administrative fees, especially if your claim is not successful.

So, Should I Use an Accident Management Company or Go Through My Insurance?

It’s true that you may have to face some problems, but it is also undeniable at the same time that the benefits of using an accident claims management service outweigh these problems. Besides, you can easily overcome these difficulties if you remain careful while choosing the company.

So, if you want to compare with other options, such as using an accident management company vs insurance company to chase a settlement, I must say that claims management companies are much more efficient.

Let’s find out some more details about why it is worth going through an accident management company.

Accident Management Company Vs Insurance Company

Is it worth going through an accident management company? One of the best things about utilising an accident management company instead of going straight to your insurance is that they often prevent unnecessary increases in your insurance premium or the loss of your no-claims bonus.

Here I am presenting a side-by-side comparison for you.

While Using an Accident Claims Management Company

No Effect on Your Insurance Premium: The accident management business will manage your claim when the accident is not your fault, so your insurance stays the same.

Full-Service: They handle everything for you, from car recovery to repair to filing legal claims and taking care of your injury.

Legal and Financial Protection: Claims management companies take care of any legal issues that come up, making sure that any damages and losses are paid for.

While Using Insurance Only

Effect on Premium: Even if you are not at fault, making a claim directly with your insurer could lower your no-claims bonus or raise your premiums.

More Work to Do: You will have to take care of most of the claim details on your own, such as making plans for recovery and repairs.

So, you can see that it is better to use an accident management company instead of your insurance company, as claims handling companies provide extensive services that can give you peace of mind and save you money on insurance.

When Is It Worth Using an Accident Management Company?

Is it better to use an accident management company? My answer may still vary depending on your situation.

If you meet the following criteria, it is worth going through an accident management company in the UK.

• You are not at fault.
• You want a smooth process that doesn’t require any work on your part.
• You depend on your car and need a new one right away.
• You need to see a lawyer about your personal injuries.
• You don’t want to pay your insurance excess.

Don’t use them if:

• You caused the accident.
• You want full control over who fixes your car.
• You already have legal fees insurance that covers things like this.

In such cases stated above, it is better to deal directly with an insurance company.

So, are accident protection plans worth it? I think you already understand that; it is worth it if you are not at fault.

Are Accident Management Companies Legal in the UK?

Accident management companies in the UK are legal and regulated by the Financial Conduct Authority (FCA). This makes sure that they handle claims and engage with insurers in a legal, professional, and moral way.

Still, I would suggest you check if they are registered and go through the customer reviews or industry reputation before choosing one.

How to Choose the Best Accident Management Company?

Is it worth going through an accident management company? There are a number of things you can do to make sure you are picking the best accident management company in the UK. You can browse reviews to find out more about the claim company, for example:

• How they talk to clients while claims are still open.

• How much experience they have with different kinds of claims.

• If they charge for the services they offer.

So, don’t forget to go through the accident management company reviews on the website before choosing a particular one.

Most importantly, don’t forget to check

• If they are regulated by the FCA.
• Whether they offer clear pricing with no hidden fees.
• If they have good reviews and feedback from clients.
• If they work with authorised repairers and solicitors.
• If they clearly explain terms, when liability is disputed.

How Do Accident Management Companies Make Money?

AMCs make money by acting as a middleman between the victim of an accident and the insurance company, charging for services that the at-fault party’s insurance company is supposed to pay for. They thrive well because they offer quick service, high credit hiring rates, and strong connections with insurers and legal networks.

Most companies operate on a “no win, no fee” or “credit hire” basis. That means they recover their costs from the at-fault driver’s insurer.

Claims companies also generate revenue through partnerships with repair shops and other service providers. They receive commissions or referral fees for allocating business to them. 

If you are wondering or confused about whether you have to pay a claims management company and how much accident management companies charge, let me clear it all up for you.

Who Pays an Accident Management Company?

If you are not at fault, the insurer of the person who caused the accident has to pay the accident management company. The services, such as vehicle recovery, repair, and replacement of your car, that you get from them are done on credit. Then they get the money back from the at-fault insurer.

And if you are at fault or if there is a disagreement over who is at fault, you might have to pay the charges.

We always advise you to check the terms and conditions before agreeing to the services.

Situation	Who Pays the AMC
If you are not at fault	The at-fault driver’s insurer
If you are at fault	You, or your own insurer (if covered)
The fault is disputed	It could be you, unless liability is resolved in your favour.

How Much Do Accident Management Companies Charge?

As you already know, the accident management companies don’t usually charge the non-fault driver directly. They charge the at-fault driver’s insurer for things like credit hire (replacement cars), repairs, recovery, and storage instead.

And as for the charge, it can be significantly higher than market rates. For instance, a replacement car that you can usually hire for £50/day might be as high as £150 to £200 per day under a credit hire agreement. Repairs and storage fees may also be more than usual, with storage prices sometimes ranging from £20 to £40 per day.

Final Thoughts

So, is it worth going through an accident management company? If you are the non-fault driver who wants a hassle-free experience, a replacement vehicle, and legal support with claims, my answer will be yes if the company is reliable.

But always consider the criteria to choose the best accident management company in the UK that I mentioned earlier. Using an accident management company can save your time, frustration, and perhaps money after a car accident if you utilise it wisely.

FAQ

How much do accident management companies charge?

If the accident management company wins your case, they will keep some percentage of your payout. Most of the time, claim management companies charge between 25% and 40% of your compensation.

Is it compulsory to use an accident management company?

No, it’s entirely optional. You can choose to go through your insurer or handle the claim yourself.

Will it cost me anything if the claim is unsuccessful?

It depends on the company’s policy. Some may charge fees if they can’t recover costs. That’s why you always need to check the contract thoroughly before finalising a deal.