Accident management

Accident management is the centralised handling of a motorist’s claim following a road traffic collision or other damages or mishaps that happen to a vehicle while on or off road. It is a cost-effective intermediary service which assists drivers in getting back on the road quickly and in managing the claims process alone. Whilst it is significantly more cost-effective for the innocent motorist, the service costs significantly more as a result - a cost borne by the insurer of the 'at-fault' driver.

The term encompasses a whole host of services; which may include 24-hour vehicle recovery, damage assessment, replacement car provision, arrangement of vehicle repairs, liaising with insurers, uninsured loss recovery, determining fault, personal injury assistance and help with paperwork.

It is a particularly useful service for vehicle fleet operators, who need to keep downtime to a minimum. An outsourced accident management service can save managers time and administration costs.

The accident management industry came about in the 1980s to address the problem of innocent motorists having to pay upfront for a replacement car after a collision, and wait weeks or even months to be reimbursed by the at-fault party’s insurer.

The service quickly proved popular with non-fault drivers, who were not getting this service from their insurer.

In the years that followed there were legal challenges by insurers on issues including costs, validity of claims and adherence to existing law. Now the rates insurers are willing to pay are set out in the General Terms of Agreement issued by the Association of British Insurers.

Accident management companies obtain their work from a range of sources, including motorists, breakdown companies, bodyshops, insurance brokers, fleet managers and dealerships.

The reputation of the accident management industry has been damaged in recent years by the competitive ambulance chasing tactics adopted by some firms to capture motorists’ personal injury claims.