Drivers involved in accidents are being offered hundreds of pounds in cash by rival insurers to let them take control of their claim.

Some motorists are finding that they are being contacted by the insurer of the driver who caused the accident before their own insurer has finished dealing with the case.

In one recent case seen by The i Paper, Aviva offered a driver £500, which it paid by bank transfer, to allow it to handle their claim rather than continuing through their own insurer.

The driver had been involved in an accident caused by an Aviva customer and had already notified their own insurer.

The practice is known in the insurance industry as “third-party capture” or “third-party assistance” and can often save the insurer dealing with the incident a lot of money.

It is legal and has been used by insurers for years, but rising motor claims costs mean there is a significant financial incentive for insurers to get control of claims as quickly as possible.

Figures published by insurance broker Marsh show that where an insurer successfully captures a third-party claim, the average saving for the company is £3,067 per claim. The figures are based on commercial motor claims data between 2022 and 2025.

That means even offering a motorist several hundred pounds as an incentive could potentially leave the insurer significantly better off than if the claim were handled elsewhere.

A spokesperson for Aviva said that where one of its customers accepts responsibility for an accident, the firm works “proactively” with the affected third party, including support with vehicle repairs and getting a replacement vehicle.

“By helping the third party access these services directly, we can often avoid the significantly higher costs associated with some accident management companies. Keeping claims costs under control also helps us keep premiums as competitive as possible for all customers,” they said.

What is third-party capture?

Third-party capture happens when the insurer of the person responsible for an accident approaches the other person involved and offers to deal with their claim directly.

For example, if another driver crashes into your car and admits fault, their insurer may contact you and offer to arrange your repairs and provide a replacement vehicle rather than leaving your own insurer to handle everything.

In some cases, insurers are also offering a cash payment as an incentive to agree.

Despite the name, you are not becoming a customer of the other driver’s insurer and you do not have to accept its offer.

Insurers are legally allowed to approach third parties directly but warns motorists that they are under no obligation to settle their claim in this way.

Insurers may want to do this as, if your own insurer organises your replacement vehicle and repairs, the eventual bill can be passed to the at-fault driver’s insurer.

By getting involved immediately, the at-fault insurer can instead use its own repair network, arrange replacement transport itself, and have greater control over the overall cost of the claim.

Why would I accept?

If liability is clear and the other driver’s insurer accepts responsibility, dealing with it directly can potentially make the process simpler.

The insurer may organise repairs and a replacement vehicle without you having to pay the excess on your own policy and subsequently recover it.

A cash incentive of several hundred pounds is obviously another attraction.

But motorists should establish exactly what you are agreeing to before accepting an incentive and whether the payment requires you to allow the insurer to take over some or all of the claim.

What are the risks?

While insurers have regulatory obligations about the way claims are handled, Citizens Advice explicitly warns consumers that the other person’s insurer will not be acting in their best interests.

This matters particularly if you have been injured, where it may not immediately be clear what compensation you could ultimately be entitled to.

Motorists are entitled to obtain independent advice and do not have to accept an insurer’s first offer.

The Association of British Insurers’ voluntary Third Party Assistance Code says insurers dealing with an unrepresented claimant should explain who they represent and why they are making contact.

There is another important wrinkle if things go wrong.

The Government confirmed last year that the Financial Ombudsman Service cannot generally consider a complaint against another motorist’s insurer where the person complaining is a third party rather than its policyholder.

The Financial Conduct Authority nevertheless requires insurers to treat third-party claimants fairly.

This potentially leaves someone accepting third-party assistance with a different route of redress from the one they might expect when dealing with their own insurer.

Should I take the cash?

A cash incentive isn’t necessarily a reason to reject an offer from another driver’s insurer, but neither should motorists allow several hundred pounds to rush them into making a decision.

Ask the insurer to put its proposal in writing and establish exactly what services it will provide, whether accepting the payment restricts your ability to pursue any other losses and what happens if a dispute develops over repairs or liability.

If you have suffered an injury, or the accident is complicated or liability is disputed, consider getting independent advice before agreeing to a final settlement.

You should also tell your own insurer about the accident even if you ultimately decide to let the other driver’s insurer handle the claim.

And don’t assume that keeping the claim away from your insurer means the accident will have no impact on the price you pay at renewal as insurers can ask about accidents and claims when calculating premiums, including incidents where you were not at fault.