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