Car insurance companies clamping down on claims settlements

As claim settlements by insurance companies are becoming harder and harder to win by motorists, local car insurance brokers are have been proving their worth to their clients, says one industry executive.

Ian Gosden, managing director for Higos Insurance Services, states that as stricter interpretations of policy wording have become the norm for car insurance companies lately.  He cited a recent study from the British Insurance Brokers Association, which indicated that insurers’ costs are rising thanks to the current uncertain economic climate, compounded by a higher incidence of insurance fraud.

Mr Gosden made the suggestion that many motorists who may be wooed by the siren song of discount car insurance quotes by price comparison sites over the Internet may be losing out.

The managing director explained, stating that while it may make good financial sense at the time, availing yourself of cheap online car insurance may have disastrous results in the event of an accident.  An insurance policy, Mr Gosden stated, is only as good as its ability to make good on its promises in the event of a claim being made against it.

Mr Godsen also added that thanks to their expertise in negotiations, expert knowledge, and technical understanding, local brokers will most likely be able to achieve better results in the event of a dispute between policyholder and insurer.

The research conducted by BIBA demonstrated that 67 per cent of car insurance brokers have had to increase their efforts on behalf of policyholders, as 93 per cent of them will negotiate, on a regular basis, in order to raise settlement claims by up to 20 per cent.

The findings of the Association also revealed that over the last twelve months, the situation has gotten worse in regards to claims settlements.  The number of brokers who admitted to fighting more vigorously on behalf of policyholders, the survey stated, had risen by nearly 10 per cent over last year’s figures.

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