Beware: The courtesy car insurance trap!

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by: bythesea
Total views: 81
Word Count: 577
Date: Mon, 30 Aug 2010 Time: 1:04 PM
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It sounds almost too good to be true doesn't it? Within an hour of an accident that wasn't your fault, an accident management company sweeps in, gets you a hire car, tells you the costs will be covered by the liable parties' insurer, that you won't have to pay an excess and that it won't affect your insurance... just sign the form...But stop! Hold that pen! The fact of the matter is that you may have to pay, as people are increasingly finding out.

Accident management companies capitalise on the inconsistency of insurers when it comes to providing a hire car. They play on the fact that the liable insurance provider is technically responsible for any costs, and they then provide vehicles for the innocent party at a massively inflated cost. It is indeed big business.

Without taking into account the impact that these overpriced hire bills are having on everybody's car insurance policies, it's important to make sure that you are entitled to that vehicle before committing ink to paper and getting behind that wheel.

It's crucial to make the distinction between need and want here, as entitlement, unfortunately, does not extend to ‘well, they've inconvenienced me, I need this car.'

For example, how will the loss of a roadworthy vehicle impact your life? Remember, you will be signing a legal document saying you cannot function without this type of car. How hiring a car after an accident could cost you more than you ever imagined.

If you don't think you could get stung by this, just take a look at the legal battle that footballer, Darren Bent faced after he got a bill for £64,000 after the other parties' insurance provider pointed out that an international footballer with a garage full of prestige vehicles could not really have felt the same sense of loss as a pensioner who relies on her Corsa to get to the shop and back.

Something else you need to consider is how the liable insurance company has dealt with the claim. If it has offered you a suitable replacement vehicle fit for your needs and you still elect to go with an accident management company and accept a car with these inflated costs, once again you could be liable for the costs. Whilst you are not at fault for the accident, it is still an obligation to do your best to avoid any unnecessary costs.

If there is any chance you will be at all responsible for the accident, it could be very unwise to go ahead with the car hire as, under the terms and conditions of the contract you sign, you will more than likely be liable for any of the costs the other insurer doesn't pay for.

Doubtlessly, in the event of an accident where you are not at fault, then you are entitled to feel the minimum level of inconvenience possible. But signing a deal with one of these opportunist companies though, is not always the best way forward.

Most car insurance providers these days are more than happy to accommodate reasonable requests and provide a like-for-like vehicle in the event it is clearly not your fault. You may also already have courtesy car provision in your own car insurance policy, so make sure you aware of what exactly you are entitled to and for how long.

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