What is Credit repair?
Credit repair is a process offered by claims or accident management companies to make life easier. An accident claim management company offers a credit repair facility if your vehicle has been damaged during a non-fault accident.
Most of us depend on our vehicles to go about our daily activities; having a vehicle damaged can instantly affect our lives and other activities. What will you do while you wait for the vehicle repair?
If your vehicle has been damaged during a road accident that was not your fault, the entire process can be time-consuming and stressful. What are you going to do without your vehicle? That is where credit hire and credit repair jump in.
What is a Credit Repair Company?
In the UK, a credit repair company or an accident management company refers to a service that helps drivers who were not at fault in a road accident by providing a replacement or hire vehicle. In contrast, their damaged vehicle is being repaired by the garage. Then, it handles the whole claims process to cover the costs from the faulty driver’s insurance company, essentially covering the repair charges without the non-fault driver needing to pay expenses out of pocket; these companies often also assist with legal issues related to the road traffic accident.
How do the Credit Repair Companies work?
A credit repair company mainly focuses on improving your credit score by challenging inaccurate information on your credit report with credit companies. In contrast, an accident management company takes over the whole claims process after a non-fault road accident, handling communication with insurance companies, arranging vehicle repairs service, providing a comparable replacement car, and potentially helping with legal claims to cover costs from the faulty party, all without any upfront charges to you.
A road traffic accident of any type is never going to be a pleasant event. Using an accident management company service like a non-fault driver can make the aftermath a lot more tolerable.
It’s an accident management service that will provide you with a high-quality, comparable replacement vehicle after the accident and take care of your vehicle repairs. This service focuses on minimizing the inconveniences to your life while repairs are carried out on your vehicle. Allowing you to go about your daily work as early as possible. Why should you suffer further inconveniences after the accident?
Benefits of Credit Repair Companies
- No Excess to Pay
Credit repair companies will fund your vehicle repairs and recover them in full from the liable driver’s insurance company or the MIB in claims involving not insured drivers.
- Untouched No-Claims Bonus
We will manage your whole claim from start to end direct through the third-party insurers – there is no need for you to lose your No Claims Bonus or to pay an excess because another driver has collided with you.
- Vehicle Repairs Authorization
The vehicle Repairs are usually authorized to start within 3 working days.
- Instructing Engineers
Independent engineers are employed to assess the repair value of your vehicle. They apply repair techniques and processes, thus guaranteeing your vehicle is repaired to the possible standards and that the at-fault insurance company pays the full repair value.
- Faster Payment to Garages
The repairer is paid immediately after your vehicle is repaired, which encourages them to prioritize your vehicle repair over their other activities, thus getting your vehicle repair completed quicker.
- Maintaining Vehicle Value
Poor quality vehicle repairs not only compromise the safety of your vehicle but also affect the value of your vehicle when you come to sell it. Therefore, it is essential to have your vehicle repaired correctly and according to the highest standards.
- Insurance Premium
Another considerable benefit of this facility is that you do not have to claim through your insurance, which, let’s face it, could turn into a nightmare. Your no-claims bonus and insurance premiums should remain untouched, ultimately making your life easier.
At Accident Claims Assist, we know just how inconvenient being involved in a car accident can be, which is why we focus on making the entire claims process hassle-free and straightforward.
No Worries About the Cost
We should not have to worry about the charges, which the other party’s insurance company covers! It will also be presented to the faulty driver’s insurers directly, so there’s no need for you to be involved.
To qualify for the service, you have to meet the following points:
- Non-Fault Accident.
- The faulty driver is insured, and this has been established.
- Your vehicle needs repairs & you do not have access to a replacement vehicle of your own while the repairs are carried out.
Credit Repair Funding Through Accident Management Company
The credit repair service provided to claimants in non-fault accidents has been a challenging source of business for financiers. Still, there are signs that the financiers are becoming more comfortable with the risks involved.
These credit repair companies have been subject to a number of steps taken by the Government in attempts to minimize your insurance premiums. Still, they continue to display a sense of change.
From a funding point of view, it is always to identify the strength of the underlying debt and provided that there is a background check for non-fault claims by solicitors or by the accident management company with suitable experience, this is not an issue.
There are potential difficulties with the Consumer Credit Act, and over the years, there has been a series of challenges by the insurance companies that have diluted the enforceability of debts, but most credit repair companies are now aware of these issues, so: –
Credit repair should be documented by an agreement that imposes liability on the non-fault driver to be paid within the timeframe, which would otherwise involve regulation by the Consumer Credit Act.
However, the financiers need to keep in mind that third-party insurers handle the claims and normally pay directly to the claimant’s acting solicitors, who then pay the credit hire or credit repair provider at the end of the day.
For this reason, the percentage of initial payments is much lower than those found in the invoice finance agreements, and there tends to be more priority on personal guarantees and security. The other point worth making is that most credit repair companies have a much better understanding of the legal issues affecting the enforceability of debts.
Do Not Speak to Your Insurance Company
After an accident, if you go directly to your own insurance company, you will be fortunate to get a courtesy car. They are not responsible for offering this service unless it is mentioned in your insurance policy. Sometimes, the insurance company courtesy cars are not available; this could result in you having rental cars or arranging a hire car.
As that was not enough, if you make a claim or even report the accident to your insurers, then the insurance premium may increase, and your no-claims bonus will be affected even if it is a non-fault accident. The quality of repairs through your insurance cannot be guaranteed, and they may replace used parts or those that are not from the manufacturer of your vehicle.
Some insurance companies will try to recover the cost from the liable party, but that does not always happen. If your insurance company pays out, then your insurance can be badly affected. Protecting your no-claims bonus won’t always be the insurer’s top priority, and the task may prove to be time-consuming.
Finally, by speaking with your insurance company first, you will lose the ability to involve an accident management company like Accident Claims Assist.
