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I feel for your son, such a crappy thing to do and such a pathetic approach by the insurance company to cave in to that. Who in their right minds would think that one tiny mark would have resulted in damage to 3 sides of a car. Cretins.
I hope your son votes with his wallet next year and selects a more competent insurance company.
These kinds of imbecilic insurance assessments are no wonder people game the system to the detriment of honest people.
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About just over 5 year's ago I tapped and I do mean tapped the back end of a mini that pulled away then stopped suddenly for no reason.
The resulting damage was nil to my car and 2 reverse sensors popped out of the mini rear bumper.
Damage cost's awarded to the lady was £300.00 and £7000.00 for both her and her daughter for supposed whiplash. I don't even think her daughter was even in the car but couldn't prove it.
I genuinely sympathise with you're son.
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Sympathies with you OP. Did you get an explanation from the insurer as to their reasoning in relation to how they perceived the damage caused to both vehicles? I'm in no doubts about how apathetic insurers can be, I know someone who wrote a car off by throwing rocks at it causing a £8k bill and then the insurers dropped recovery from them because they advised they had limited disposable income despite a police caution, a £40k salary and 3 houses with equity >£250k.