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Councils are raiding drivers’ pockets in search of extra funds, and it isn’t right

Image of Alisdair Suttie
Author: | Updated: 06 May 2016 17:32

Drivers are often regarded as a bottomless sack of money by governments, but now local councils are getting in on the act in a very subtle fashion. Whenever there is a collision involving damage to Crown property, which means just about every road surface, sign and barrier, councils are claiming on the driver’s insurance for the repairs.

Nothing wrong in that, you may well say, as this is what insurance is for, after all. It’s there to cover the cost of repairs to others’ property, even if it’s owned by the Crown and looked after by the council. We shouldn’t expect council tax payers to foot the bill for our driving errors or those of others.

This is exactly as it should be, except that some are now charging such exorbitant sums for repairs and damage that it’s become a lazy and easy way for cash-strapped councils to raise a bit of extra cash. That is where it ceases to be fair for local government to be recompensed for damage and it strays into the inept at best, and downright grasping at worst.

Crashed Car Roadside

Examining the evidence

Evidence of this overcharging on a regular basis comes from Claims Management and Adjusting (CMA), a company that specialises as an adjuster for managing, investigating and resolving insurance claims. With its knowledge of this type of claim, CMA says fleet operators, leasing companies and insurers should challenge the costs associated with repairs to street furniture and roads after any collision, spillage and fire.

Highways England had claimed for the distance of barrier in yards when it should have been feet, so the total amount was three times larger than it should have been

While this might sound like an insurance adjuster simply trying to reduce the cost to the insurer, the facts are clear. CMA cites on fleet operator who was presented with a bill for £46,000 for the repair of a barrier on a motorway by Highways England.

On investigation, it was found Highways England had claimed for the distance of barrier in yards when it should have been feet, so the total amount was three times larger than it should have been. As a result, the claim was reduced by two-thirds and saved the client around £30,000.

Other examples come all too readily from CMA, such as the claim for £56,000 to resurface a road in the south east of England following a contaminant spill. By showing that a similar incident had been dealt with in Scotland for just £750, the claim was suitably amended. Another driver was billed £4700 by a council for spilling some paint on the road. It took the council’s contractor only 16 minutes to clear up the mess and the insurance claim was cut to £700.

HA0493-003

These might sound like cherry-picked and isolated incidents, but CMA’s managing director Philip Swift says: “I don't not make these comments lightly, but certain Highways England contractors seem to be acting in an informal environment. The tail appears to be wagging the dog, particularly where contractors have agreements to retain claims under a certain threshold, commonly £10,000.

“My experience of dealing with hundreds of these below-radar claims, which Highways England acknowledge they do not supervise, has caused me to question whether many of the costs being presented are accurate or appropriate.”

Well, Mr Swift would say that, wouldn’t he, you might be thinking as his company also makes its living from representing drivers who feel they have been unfairly charged. However, Mr Swift is a former police detective, so he has a nose for unfair behaviour.

It’s why he adds: “There is a lack of transparency. Contractors are not subject to the Freedom of Information Act and we frequently see cases of serious overcharging. In a not insignificant number of cases, no payment is warranted at all. My advice to any driver or business who thinks they might be a victim of this behaviour is to challenge it.”

What if you are affected?

How do you go about taking on a council or its contractors? Of course, you can do it through a company such as CMA, or you can task your insurance company to challenge the claim. Any insurer should be looking to reduce its losses anyway, so prompting them to take up the case might be the encouragement they need.

However, there are other means to put councils and their sub-contracted workers on the spot. If you are on the receiving end of a claim that you think is excessive, write to your insurer and the council stating that you don’t think this is a fair assessment and it should be recalculated. You can also use a Freedom of Information request, which is completely free to issue, to ask the council to explain how the claim figure has been arrived at and to show its costings.

Totting Up Figures

A further method to put the council on the spot is to show the same work to repair the road or street furniture could have been carried out in a more cost-effective manner. Whether this is obtaining quotes yourself or finding examples of other councils effecting repairs for much lower sums, it proves the council is overcharging for the same service.

Another advantage of this is no council wants to be seen overcharging as this could also lead to accusations of them wasting tax payers' money on extravagantly expensive roadworks.

If a council or its contractor refuses to amend its bill and you still feel it’s too expensive, you can take the case to court.

Clearly, this is a serious step and will involve a considerable cost in time and money, especially as you may have to engage a solicitor. However, when some of the savings can amount to many thousands of pounds, it could be worth it when the sum being disputed is very large.

Councils may have had their budgets cut and need to find other ways to bring in revenue, but unfairly punishing drivers by overcharging for repairs to Crown property is not right.

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