ACHL’s Ethical Approach.
At Accident Claim Helpline (ACHL), we recognise the scepticism around claims management companies (CMC’s) and aim to clarify our role in delivering ethical, transparent, and customer-focussed services.
Unlike large insurers, whose operations often prioritise profit margins to meet the demands of their shareholders, CMC’s like ACHL are designed to provide tailored support during stressful and challenging times. Whilst we are a business accountable to stakeholders, our focus remains on delivering expert guidance and empowering individuals with freedom of choice.
Misconceptions about CMC’s
ACHL has absolutely no interest in misleading customers. Instead, we focus on providing options and empowering customers to make informed choices about their claims.
It’s a common misconception that using claims management companies directly increases insurance premiums. Whilst insurers may claim that the rising cost of claims contributes to premium hikes, the reality is that premiums are influenced by a wide range of factors unrelated to CMC’s.
Key reasons why car insurance premiums rise include:
- Inflation: Rising costs in goods and services, including vehicle repairs and claims processing, lead insurers to increase premiums to maintain profitability.
- Increased Repair Costs: The cost of vehicle repairs has risen significantly due to higher material and labour expenses. Supply chain delays also continue to prolonged repair times, resulting in increased courtesy car costs for insurers.
- Energy Prices: Higher energy costs directly impact repair centre operations, pushing up repair fees and insurance costs.
- Regulatory Changes: The Financial Conduct Authority’s (FCA) ban on “price walking,” a practice where new customers received discounted rates whilst existing ones faced incremental increases, has led insurers to standardise higher prices upfront.
- Claim Frequency and Severity: Economic pressures and more severe accidents can lead to higher claims payouts, influencing premium adjustments.
Insurers raise premiums even when no claims are made, due to these systemic factors. Therefore, attributing premium increases solely to the involvement of CMC’s is misleading. Insurance costs are
shaped by broader maker conditions, including inflation, supply change issues and operational expenses.
The Harm Caused by Insurers: Regulatory Failures and Customer Impact
There are strong examples of regulatory actions and customer harm caused by insurer practices, further highlighting the hypocrisy of some insurers’ criticisms of Claims Management Companies.
For instance, in 2023, the FCA required Direct Line to review five years of past claims after acknowledging it had underpaid settlements for car and van customers, leaving many customers short of fair market value for their written-off vehicles. This underpayment practice is a clear violation of FCA rules, which mandate fair valuations. The FCA emphasised that such actions erode trust and directed insurers to compensate affected customers. In another case, customers reported receiving offers from insurers that were significantly below market value – such as one individual offered £2,000 less than their car’s worth by an Aviva-owned Solus Garage. These discrepancies reflect systemic issues, not isolated incidents.
Additionally, complaints about vehicle undervaluation’s have risen sharply, with customers losing an average of £616 per claim, a figure that has nearly tripled since 2016. This highlights a broader pattern of insurers failing to meet their obligations whilst still profiting from increasing premiums. Such behaviours contradict the accusations against CMC’s, which often exist to address these very failures.
These examples demonstrate the need for Claims Management Companies to hold insurers accountable when customers are underserved or misled.
The Benefits of Choosing ACHL
We respect that insurers play an essential role in the claims process, but it’s vital to remember they, too, are businesses balancing costs and profits. ACHL provides a valuable alternative, ensuring fairness and advocacy for customers.
The Benefits of Choosing ACHL
- Client-centric approach: Unlike insurers, our focus is solely on securing the best outcome for you.
- Transparent Process: We clearly explain our role and services, empowering clients to make informed decisions.
- Freedom of choice: We provide alternative solutions that can complement or improve on an insurer offering.
- No Claims Discount: By not claiming via your own insurance policy, you will not negatively impact your no-claims discount (Where applicable)
- Replacement Vehicle: You will be provided with a comparable vehicle to your own which usually isn’t available claiming via your insurer.
ACHL: Ethical. Transparent. Here For You.
Google Advertising: Compliant and Transparent
Google advertising is just one of many ways we connect with customers. Just like insurers, we utilise this platform to promote our services. However, Google enforces stringent compliance standards to ensure fair advertising practices and ACHL meets these high standards by clearly stating our identity and never impersonating insurers, and strictly adhering to protocols that ensure potential customers understand who we are and the independent services we offer.