Towing company offering to manage claim with 3rd party

popcornready on 06/07/2022 - 13:09

Hi all,

Had a bingle. Was not at fault. I rear ended badly. Car looks a write off

Towing company suggested we claim directly with 3rd party to get a bigger payout (as it looks a write off) and that they can help manage the claim.

I have comprehensive, but agreed value which is lower than current market (should have updated my policy 18 months ago).

What are the pitfalls of allowing towing company to manager?

I am assuming I won’t get paid till 3rd party agrees/assesses, whereas with my insurance company it gets sorted quicker.

I also assume I won’t get paid if the 3rd party insurer refuses to cover the at fault driver and then I have to chase driver directly.

I also don’t trust a company to manage a process that is not their bread and butter. I imagine they are wanting to do this so they can issue a large bill to the third party for their services too.

Keen to hear experiences.

Also, has anyone manage to have their insurance agree to a value higher than the agreed value on the basis they were not at fault?

Automotive

Comments

  • Muzeeb on 06/07/2022 - 13:11
    +1

    I assume the towing company is linked to a panel repair shop?

    • popcornready on 06/07/2022 - 13:17

      It could be, but no idea.

      Though the car would be a write off. So they won’t need to repair it (not for me anyway)

  • stirlo on 06/07/2022 - 13:13
    +2

    Don't take a hire car from the tow company unless you want to completely ruin the other drivers life. These non insurer claim companies are total leaches and will ruin the life of the person who hit you by personally suing them and charging outrageous costs in return for a tiny bit more cash in your pocket. Avoid them unless you are a selfish jerk.

    • Baysew on 06/07/2022 - 13:16

      Wouldn't the at fault driver just claim on their insurance?

      • popcornready on 06/07/2022 - 13:18

        Correct Baysew.

        The at fault has comp insurance too.

        The payout difference if a write off would be $7-$10k more

      • stirlo on 06/07/2022 - 13:18
        +5

        There was a case recently where the insurer refused to cover their customer for the inflated cost of the hire car provided by the towing company and then they were required to personally sue the driver after insurance denied. It's a scam and just enriches leaches in the system while both drivers get treated like shit.

        • popcornready on 06/07/2022 - 13:28
          +1

          Many years ago I had a hire car when my partner was not at fault.
          It was organised through RACV insurance. I saw the bill (I think it was Hertz) and it was over the top and inflated. So insurance companies use the same tactic it seems

  • bobbified on 06/07/2022 - 13:33
    +2

    Don't go through the towing company. Their sole purpose would be to try and get as much money as they can off the insurer. If anything, they could complicate things for yourself even more if the insurer refuses to pay them. You could then be personally liable for whatever huge invoice they come up with.

  • SF3 on 06/07/2022 - 13:34
    +2

    OP’s username may checks out with this story.

  • [Deactivated] on 06/07/2022 - 13:44
    +1

    What is in it for the towing company to manage a 3rd party claim for you?

    • stirlo on 06/07/2022 - 14:12

      Exactly, they'll increase the costs for everyone one involved and probably just make it more complicated. First point is to call the insurance and seek guidance if you can get a payout above agreed value by claiming on the other drivers insurance not yours… You don't need a slimy tow company in the loop to do that.

      • popcornready on 06/07/2022 - 14:21

        Unfortunately can’t get above agreed value

        So unless I claim directly, but that has headache written all over it

    • DashCam AKA Rolts on 06/07/2022 - 14:13

      What is in it for the towing company to manage a 3rd party claim for you?

      $$$, they're not doing this out of the goodness of their heart.

      • popcornready on 06/07/2022 - 14:22

        Of course there is a benefit to them, I.e as described above with higher rates etc

        I’m also guessing they will inflate their “storage fees” etc

        • [Deactivated] on 06/07/2022 - 16:22

          You would need to know exactly what is involved in order to ascertain if it's worth going with their offer though.

          Did the towing company provide you with any paperwork as to the T&Cs of their 3rd party claim management services?

  • plmko on 06/07/2022 - 14:32

    I would leave it to the towing company.

    Not a troll, but most comments here seem to be worried about the mechanics of it rather than the end result: zero worries and a payout.

    • bobbified on 06/07/2022 - 15:59
      +1

      zero worries and a payout

      Until the insurer refuses to pay a share to the towing company and they come after OP (or the at-fault party) instead. The money to pay the towing company has to come from somewhere.

      • andresampras on 06/07/2022 - 17:09

        Agreed. I was in a no-fault accident when I had my P plates on.

        Towing company pretended they wanted to take care of me (I was in shock and shivering), and offered me a 'cheap' rental car, getting me to sign an agreement.

        Only later did I find out their 'reasonable' price was inflated for the shitbox they gave me (from memory it was a beat up old camry with winding windows, for $40/day).

        Lesson learned - don't trust tow truck companies.

  • apsilon on 06/07/2022 - 15:55
    +3

    I'd bet you get nothing extra out of it, maybe even be worse off. They're not going to do it for free, they're offering to do it because they can make money out of it and that's their focus, their bottom line, not yours.

  • lost00 on 07/07/2022 - 17:24
    +2

    This is a big scam. You will be handing over rights to the tow company to sue on your behalf.

    Towing company offers to take care of "not at fault" drivers.

    The charge an exorbitant amount to the insurance company and when insurance company refuses to pay, they charge it to the at fault driver

    https://debtrecoveries.com.au/how-to-avoid-car-crash-debt-re…

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