Claims Management Firms: What They Don't Tell You
They promise "no win, no fee" but could end up costing you hundreds or even thousands of pounds. There's a better way.
What Are Claims Management Firms?
Claims management companies (sometimes called claims management firms or CMFs) offer to handle your insurance dispute for you. If your vehicle has been written off or stolen and you believe your insurer's settlement is too low, these firms will negotiate on your behalf.
On the surface it sounds appealing, especially when they advertise "no upfront fees." But there's a catch — and it's a big one.
The Hidden Cost of "No Win, No Fee"
Claims management firms typically charge a success fee of between 18% and 36% (including VAT) of any additional money they recover for you. That means if they successfully get your settlement increased, they take a significant chunk of it.
Example: Your Car Is Worth More Than the Insurer Offered
That's £840 gone — for something you could have done yourself with the right evidence.
The fee bands used by claims management firms typically work like this:
| Compensation Amount | Their Fee (inc. VAT) |
|---|---|
| £1 – £1,499 | Up to 36% |
| £1,500 – £9,999 | Up to 33.6% |
| £10,000 – £24,999 | Up to 30% |
| £25,000 – £49,999 | Up to 24% |
| £50,000+ | Up to 18% |
What Do They Actually Do?
Here's what most people don't realise: claims management firms use the exact same valuation evidence that you can get yourself. Their process typically involves:
- Obtaining valuations from industry-standard guides (AutoTrader, Glass's Guide, CAP HPI, and Percayso)
- Comparing these valuations against your insurer's offer
- Writing a complaint letter to your insurer
- If the insurer doesn't budge, referring the case to the Financial Ombudsman Service
Every single one of these steps is something you can do yourself. The valuations are the key piece of evidence — and we provide all four of them in one report.
The Financial Ombudsman Is Free to Use
If your insurer won't increase their offer after you present the valuation evidence, the next step is the Financial Ombudsman Service (FOS). What many people don't know is:
- The Financial Ombudsman Service is completely free for consumers
- You don't need a claims firm to submit a complaint — anyone can do it
- The FOS uses the same four valuation guides we provide to assess fair value
- From December 2023, the FOS will usually regard the highest of the four leading motor valuation guides as fair
Claims management firms charge you hundreds of pounds to do something the Ombudsman lets you do for nothing.
Other Things to Consider
Delays
Claims management firms often handle large volumes of cases. Your claim may not be their priority, and the process can take months. When you handle it yourself, you control the timeline.
You lose control
Once you sign up with a claims firm, they communicate with your insurer on your behalf. You may not be kept fully informed about what's happening with your own claim.
Cancellation fees
While some firms offer a 14-day cooling-off period, after that you may be locked in. If you want to cancel or handle the claim yourself, there may be penalties.
They can only do what you can do
Claims management firms have no special powers or access. They use the same complaints process and the same Ombudsman service available to every consumer. The only difference is they charge you for it.
Car Value Report vs Claims Management Firms
| Car Value Report | Claims Management Firm | |
|---|---|---|
| Cost | One-off fee of £14.99 | 18–36% of your settlement |
| Valuation sources | All 4 FOS-recognised guides | Same 4 guides |
| You keep your money | 100% of your settlement | 64–82% of your settlement |
| Speed | Report delivered instantly | Weeks or months to resolve |
| Control | You handle it directly | Third party handles it |
| Financial Ombudsman | Free to use yourself | They charge you to submit |
The Smarter Approach
Get your valuation report
For just £14.99, get valuations from all four industry-standard sources: AutoTrader, Glass's Guide, CAP HPI, and Percayso Vehicle Intelligence.
Present the evidence to your insurer
Show your insurer the independent valuations. In many cases, this is enough for them to increase their offer. We even provide you with a template email to send to your insurer.
If needed, go to the Financial Ombudsman
If your insurer still won't budge, submit a complaint to the Financial Ombudsman Service yourself — it's completely free and they use the same valuation evidence you already have.
Keep 100% of your settlement
No percentage fees. No success charges. Every penny of the increased settlement goes straight into your pocket.
Don't Give Away Hundreds of Pounds
Get the same valuation evidence claims firms use — for a one-off fee of £14.99 instead of 18–36% of your settlement.
Get Your Valuation Report