Just to provide an update, this has been an overly stressful process so far, I had a text message to call the neighbours insurance company and when I spoke to them, they said that as the California was a specialist vehicle they couldn't repair it or provide me with a like for like courtesy vehicle and I'd need to speak to my insurance company!
My insurance obviously just passed it straight to a claims handling company who provided me with the name of a local VW approved bodyshop who I spoke to and when I asked the question about what they would do with the kitchen in regards to ensuring it is OK, they suggested that I take the van back to the company who did the conversion, FFS! That didn't fill me with much confidence.
As of last thing Friday I am now in communications with a different claims handling company who was recommended by the bodyshop that is used by the dealer I bought the California from.
I'm now waiting to hear back from this claims company with what happens next.
I would highly advise you not to deal with a claims handling company.
You do not have to use a third party claims company - all your insurance company is doing is shifting the responsibility. Insist your own insurance company handle everything.
You need to get on top of this quickly because if you agree to a third party handling this claim it will become much harder to manage.
If your own insurance company refuse to manage this claim - just go straight to their complaints and use AI to give you properly worded email that points to your rights.
I only know this because I had similar incident recently but with my Tesla and had to look into it all. Insurance companies try and force you into using an Accident Management Company and it's not in your best interests because you now have another party to deal with.
I used my Insurer to repair the car - and the at fault drivers insurance to get a similar Hire Car for the time it took to repair which was fully paid and insured by the at fault drivers insurance.
Here's a quick AI Summary from Gemini:
You do not have to use the third-party claims handling company. When another driver hits you and admits fault, your insurer will often try to refer you to an Accident Management Company (AMC) so they can avoid handling the admin themselves and earn a referral fee, while the AMC makes money by charging the at-fault insurer high rates for a "credit hire" car and repairs. [
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Because fault is already admitted, you have three clear options for how to proceed: [
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Your Three Options
| Option | How It Works | Pros & Cons |
|---|
| 1. Deal directly with the at-fault driver's insurer | Contact the other driver's insurance company directly. Since they have admitted fault, they will usually arrange your repairs and provide a standard courtesy car at their own cost. | Pros: No excess to pay, no credit hire agreements to sign, and your own policy stays completely untouched.
Cons: You deal with their customer service directly. |
| 2. Insist on claiming on your own policy | Tell your insurer you decline the referral to the claims company and want to claim under your own comprehensive policy. | Pros: Your insurer manages the repair through their approved network.
Cons: You usually have to pay your policy excess upfront (and wait to get it back), and your No Claims Bonus may be temporarily affected until they recover the costs. |
| 3. Use the Accident Management Company (AMC) | Accept your insurer's referral to the external claims handler. | Pros: No upfront excess, and you usually get a like-for-like replacement car.
Cons: You are signing a credit hire and credit repair contract in your own name. If the at-fault insurer disputes the inflated hire car rates later, you can be dragged into court proceedings as a witness—or, in rare cases where you fail to cooperate, held liable for the costs. |
Why Your Insurer Is Pushing This
- Referral Fees & Cost Shifting: Passing a non-fault claim to an AMC means your insurer pays nothing out of pocket and receives a commission. [1]
- Credit Hire Risks: As noted by the Financial Ombudsman Service, AMCs often place you into unregulated credit agreements. Insurers must explain your options fairly and must not mislead you into thinking you have no choice. [1]
- Community Consensus: One point of agreement among users on Reddit is that when an AMC pursues a credit hire claim, they initiate legal proceedings in your name and require you to cooperate with paperwork or court appearances if the other insurer challenges the bill. [1]
Recommended Next Steps
- Check if the other insurer has contacted you: If the other driver admitted fault, their insurer will often reach out to offer direct repairs and a hire car (known as third-party assistance). If you only have vehicle damage and no personal injuries, dealing with them directly is usually the simplest, risk-free route. [1, 2]
- Tell your insurer "No" clearly: If you want to use your own policy instead, tell your insurer: "I am declining the referral to the accident management company and wish to make a standard claim under my comprehensive policy."
- Do not sign credit agreements blindly: If you do consider using the claims handling company, ask specifically whether the courtesy car is a credit hire agreement and what happens if the third-party insurer disputes the daily rate. [1]
