A frugal life is an easy life!

Without exception, I know of no one that I have ever had the pleasure of meeting, who thinks all is well with the world of car insurance!

The reason why was brought home to me only this week.

Back in October, I was driving towards my school, where I was volunteering to help out with a netball practice for the children.
As I turned into the road junction, an artic - which shouldn't have been there making a delivery as part of the planning permission - was coming the other way and blocked off any access.
I rolled back a matter of inches, when I heard a horn beeping at me. I stopped immediately.
Getting out of the van, a car had also been turning into the junction and had got that close to my footplate at the back, that it was out of sight.

I had grazed the plastic bumper of the car, with my van footplate, to the size of a 50 pence piece.
The driver of the car got out and immediately insisted that his ten year old car had immaculate bodywork!
Before I could write my details down for him, he'd already estimated that the 50p sized graze on his plastic bumper would cost "£150 to put right"
I told him to get a quote for the repair from a garage and I would probably pay him in cash to have it fixed.

Later that afternoon and the phone went, the garage quote came in at £152 (uncanny I thought, within 30 seconds of the 50p graze to the plastic bumper of a ten year old car, the owner of the car had estimated within £2 of a garage repair!)
Not happy with paying this out in cash, I put it through on my car insurance.

I provided the reference number to the car owner, instructing him to send in his garage quote and the insurance would take care of it, I wouldn't be arguing against it, I admitted fault, etc.
The owner of the car was surprised by this and even thanked me for sorting it out in such a speedy fashion instead of arguing about it and making things difficult.
Here's where the fun begins...

The next day I was informed by a friend that the artic blocking the road off, should not have been there at that time of day, it was against planning permission given for the substantial building work going on nearby.
I rang my car insurance company, who seemed to be not bothered at all!
I could try and get a copy of the planning permission, just the section that shows that the artic shouldn't have been there, but was told that the car insurance company would "probably just pay out on the claim regardless"
I asked why, when it was in both the insurance company and my interests to charge the bill for repair to the company carrying out the building work?
The insurance company were not interested.

I heard nothing more about the whole graze/repair episode, so I presumed that was that.
Until last week, when I received a letter from my car insurance company, stating the following;

"We are about to settle this claim in full. We have read the claim file and will finalise settlement for the total of £554"

£554? What has happened to the £152 quote and claim?

I rang my car insurance company (Churchill car insurance) and asked what was going on, their attitude was shocking!
"You win some you lose some!" - But what about the claim, are you not bothered about paying out more than £500 for a graze (on a plastic bumper so it wouldn't rust) the size of a 50p piece on a ten year old car?
"Not really, you cannot raise a complaint against the claims officers" - This repair was quoted at £152 by the garage fixing it, now it's shot up to £554 aren't you even going to query it?
"No, the claims officers will be settling in full for £554" - Regardless of your company's loss and my loss of no claims bonus, you don't feel the need to investigate this?
"No, as I have said already the claims officers will just pay it!"

When my policy is up for renewal, I will be paying out more money.
But that is not the issue here.
Knowingly making financial gain by making false representation is FRAUD!

One of two things is happening here:

• The owner of the car and the garage owner are splitting the extra money they are now claiming, above that of the repair quoted for
• The owner of the garage is claiming money for repair work he will not be carrying out

Either way, someone is falsifying documents to make financial gain. The alarming thing is that my car insurance company are not the slightest bit interested in stopping this practice. Why not?

I was under the impression that car insurance companies represented the best interests of their customer?
The insurance company won't be bothered as they will make their money back off me when my policy comes up for renewal.
By ignoring what is an obvious fraud, they are an indirect party to it are they not?

What ever is going on here, it is the car insurance customer that loses out everytime, it's a no-win situation, which invariably pushes up everyone's premiums in the long term.
It needs to be stopped.

UPDATE:

After ranting on the phone to the claims office, who want to pay this magical amount to settle the case in full, they invariably let some information slip, which might interest anyone making a claim on their car insurance.
Apparently, car insurance companies have agreements in place with other car insurance companies.
In my case, the owner of the car I grazed, rang his own insurance company and they took over from there. This insurance company (LV) I am told, paid out for the repair (I'm guessing they paid the bloke £152 that was quoted?) and from this, they have raised a fee owing with my insurance company of £554 - an increase in the claim value of £402!

Car insurance companies DO NOT check claims made by other car insurance companies, if they have an agreement in place.
I was told that claims are normally just paid out in these cases.

"You win some you lose some" is explained by this.
Money lost on a claim by my car insurance company are recovered when my insurance makes a claim from another insurance company, where an agreement is in place?

Thanks to my intervention, the payment has been stopped and documents have been requested.
This clearly shows that my car insurance company have not seen or verified any paperwork/quotes regarding this claim. Why not?

UPDATE 2:

Now a week later, so I ring Churchill car insurance up, speaking to their claims department.
How is the claim going?
"The money has been paid out and we are awaiting the documents still, but we might not get them because we don't have the facility to receive them!"
So exactly what is the point of requesting the documents?

Without question there is fraud taking place somewhere along the line with this claim.

"If a claim from another insurance company is less than a £1000 insurance companies do not ask for verification"
So churchill car insurance is operating a cartel with other car insurance customers then!
"No we wouldn't do that!"
So why not check claims before paying out on them?
.... no reply!

So last week, churchill's advisor was lying through her teeth when she told me she had stopped the payment and would have the documents within 7 days.
I was also lied to when I was told that the case would be investigated.

For a graze the size of a 50p piece, my insurance are paying out more than my entire years policy price, without any question - despite having a quote for £152 for the repair.
If it's under £1000 then churchill insurance do not question or stop payments regardless.

Is it any wonder everybodies car insurance prices keep rising year after year!