Fail to inform your insurer within – at most – a day and the claims bill could soar as a result, leading to higher insurance premiums at renewal time.

Jenkins believes that the insurer (or accident management firm) should be informed immediately after names/addresses are exchanged – even before the company is informed.

It’s the only way to minimise the claims cost.

A robust accident management policy should:

• Reduce administrative burdens
• Create savings whenever possible – through streamlining the claims process or through outsourcing
• Consolidate and upgrade management information and operating data to identify areas of risk and potential savings
• Improve safety records
• Standardise service across the UK
• Define critical repair times
• Include mobile repairs, if appropriate

For many fleet managers, the most straightforward way of ensuring that correct and carefully tailored procedures are put in place is by employing an accident management company.

Their role is to ensure the vehicle is properly repaired, check that the repair estimates and final bills are reasonable, getting the driver back on the road as quickly as possible, and handling any third party involved in the crash.

However, when tendering, fleets must investigate the financial stability of firms in light of the collapse of two accident management companies in the past six months.

Key areas to assess include average cost of repair, successful control of third-party costs, the quality and training of staff, established procedures and the company’s reporting ability.

Accident management companies should also be able to project a fleet’s costs for the year ahead based on historic figures and demonstrate predicted savings.

Steve Thompson, group sales director of Nationwide Accident Repair Services, says: “As insurance premiums continue to rise, accident management providers can minimise repair costs, organise non-insurance work and help to protect future insurance premiums.

“More and more large fleets are outsourcing their accident management as they realise that this can be an area for significant efficiencies, improvements and cost savings.”

Mark Garnham, network manager at claims management company CAA, believes accident management companies offer fleet managers economies of scale.

CAA has more than 250,000 vehicles on cover which allows it to negotiate and agree competitive rates with all of its partner suppliers.

Garnham says: “Fleet managers have a responsibility that in the event of an incident their drivers are looked after and cared for, and the vehicles they drive are maintained and repaired to the correct manufacturer and safe standards.