At Lacey Solicitors in Belfast, we help clients navigate the often confusing world of motor insurance and car crash claims. In recent years, we’ve seen a sharp increase in clients seeking the services of accident management companies (AMCs). While these companies can provide much-needed assistance following a crash, there are also serious risks involved.
This article provides a brief look at how AMCs work, the pros and cons of using them after a car crash, and the legal and financial implications involved—especially when it comes to credit hire agreements.
What Are Accident Management Companies and Why Do People Use Them After a Car Crash?
An Accident Management Company (AMC) offers post-accident services to drivers. This includes:
- Reporting the crash to your insurance company
- Recovering the damaged vehicle
- Providing a temporary replacement (credit hire)
- Managing repairs
- Dealing with insurers
- Recovering uninsured losses
- Assisting with personal injury claims
AMCs are especially attractive to businesses with vehicle fleets or private motorists who want to avoid dealing directly with their insurance company or worry about losing their no-claims bonus after a car crash.
Benefits of Using an Accident Management Company
- One-Stop Service
AMCs undoubtedly simplify the process by handling everything after a car crash—from recovery to legal claims—so you can focus on recovery or getting back on the road. - No Upfront Costs (in Non-Fault Crashes)
In most situations where you are not at fault in a car crash, you do not pay upfront for the replacement vehicle or repairs. These costs are recovered by the AMC from the at-fault party’s insurer. - Little Impact on Your Insurance Premium
Unlike traditional insurance claims, involving an AMC after a crash may help you avoid a hit to your no-claims bonus or an increase in your premiums. - Quick Recovery and Replacement
Your damaged vehicle is towed quickly, and a temporary replacement is often provided within 24 hours of the crash, limiting business or personal disruption. - Expert Accident Claims Handling
AMCs employ specialists and normally work with the best road traffic accident lawyers who know how to negotiate car crash claims and legal issues efficiently.
The Risks: What Lacey Solicitors Is Seeing More Often
The majority of AMCs provide a premium service to their customers. often at a stressful time in their lives. Despite this however, we have seen a significant rise in complaints related to the services and conduct of AMCs after car crashes.
Common problems include:
Poor Communication and Informed Consent
We’ve seen many cases where clients were not told they were leaving their motor insurance cover. Many drivers are unaware of the terms and conditions of the credit hire agreement they are entering into. Many believe that the AMC is actually their insurer. This often happens when drivers are referred to an AMC after reporting their crash to an insurer or broker, unaware they are now dealing with a third-party provider.
Financial Liability If The Insurer Refuses to Pay
Many drivers do not understand the risks or responsibilities of credit hire after a car crash. If the at-fault driver’s insurer denies liability or disputes the costs claimed by the AMC, you may be personally responsible for the hire charges or repair costs after the crash depending on the terms and conditions of your agreement.
How Credit Hire Works — And Why It Can Backfire After a Crash
In most cases, a non-fault driver receives a like-for-like hire vehicle from the AMC after a car crash. You sign an agreement stating that you won’t be charged unless the at-fault insurer refuses to pay.
The risks?
- If liability for the crash is disputed, the third-party insurer may not pay at all
- You may have to go to court—or worse, you may be asked to pay the bill yourself
- Claims for high-end vehicles (e.g. a Tesla Model 3 for 3+ months) have been challenged for being excessive, unnecessary or poorly managed
Key Legal Issues in Credit Hire Disputes
At Lacey Solicitors, we act on behalf of insurers and AMCs and regularly advise on credit hire claims. Four common issues emerge in car crash-related cases:
1. Need
Was a replacement vehicle actually necessary? Courts will consider:
- Whether you had another car available
- Your daily mileage
- Public transport alternatives
2. Duration
Was the vehicle hired for longer than necessary? Delays caused by you or the AMC on your behalf can reduce the compensation recoverable following the crash.
3. Hire Rate
AMCs offer a premium service and ask for no money upfront. For that reason they often charge credit hire rates, which are higher than normal and higher than you might find from a high street provider. Unless you can prove impecuniosity (financial hardship), you may only be entitled to claim the basic hire rate (BHR)—i.e. the rate of a high street provider.
4. Impecuniosity
To justify full credit hire costs, you must prove, that as a matter of priorities, you couldn’t afford a hire car from a high street provider after the crash. Courts require documentary evidence such as:
- Bank statements
- Payslips
- Regular monthly expenses
Without this, your claim for the full hire cost may be reduced or rejected.
When Should You Avoid an AMC After a Car Crash?
You should think twice about using an AMC if:
- You have another vehicle or public transport access
- Liability for the crash is unclear
- You are unclear about the terms and conditions of credit hire
How to Protect Yourself After a Crash
- Ask for Full Details: Get written information about what you’re signing and a copy of any agreement.
- Speak to a Solicitor First: Before entering into a credit hire or repair agreement after a car crash, get legal advice—especially if liability is in dispute. Most road traffic accident solicitors will be able to guide you to a reputable AMC.
- Request Transparency: Ask the AMC directly who is liable if the third-party insurer refuses to pay or if a court finds you liable.
Our Experience and How We Can Help
At Lacey Solicitors in Belfast, we represent individual motorists, business fleets, brokers and insurers facing legal challenges after a crash. We offer:
- Legal representation in credit hire disputes
- Advice on whether to use an AMC following a car crash
- Support in claims for hire/repair costs as well as defending such claims
Conclusion: AMCs Can Help After a Car Crash — But Only If You Know the Risks
Accident management companies can provide essential services—particularly in non-fault car crashes—but not all AMCs are created equal. Unclear agreements, lack of disclosure, and liability disputes can quickly turn what you thought was a simple “free” replacement car into a costly legal battle.
If you’ve been involved in a crash and are unsure whether to use an accident management company, or if you’re facing a credit hire dispute, contact our experienced team at Lacey Solicitors.
Need help with a credit hire or crash-related claim? Call us today at 028 90 896540 or email info@laceysolicitors.com.
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