$13k bill for little bingle prompts watchdog warning

A young driver was nearly scammed out of $10,000 over a “minor” bingle. Now the state’s consumer watchdog has a warning for motorists using third parties to handle crash claims.

The state’s consumer watchdog has warned motorists against turning to third parties to handle their crash claims after a young driver says he was almost scammed out of $10,000 over a “minor” bingle by a company founded by a convicted fraudster.

The company is co-founded by Nick Karagiannis, who has been convicted of fraudulent car dealings. Karagiannis defended his businesses’ handling of the claim and asked that his past “not cast a shadow on his team or independent partners”.

There is no suggestion that any of Karagiannis’ current business associates engaged in the same fraudulent behaviour.

It stated the repairs would cost $13,393.50 plus an assessment cost of $550.

The teen was told he needed to pay the money within seven days or legal proceedings would begin.

The teen’s father, a lawyer, contacted the other driver directly as the pair had exchanged details after the accident.

Nicholas Karagiannis (pictured) and his wife Helen are co-founders of Crash Claim. Picture: crashclaim.com

Shocked at the correspondence, his father, a lawyer, did some research and then contacted the other driver directly - as the two drivers had exchanged details on the day of the accident.

Their own quotes had the damage bill closer to $2000. The repairs were completed and paid for by the young driver and both parties are satisfied.

The other driver, told the Saturday Telegraph she was shocked at what had gone on.

“I felt so horrible that I had allowed this to happen, I thought I was just contacting a company that would take the leg work out of the process,” she said.

It is understood NSW Fair Trading is investigating Crash Claim Accident Management. Since January 2024 they have received 10 complaints about vehicle accident claims management companies.

The damage to the car that was repaired for around $2000.

NSW Fair Trading Commissioner Natasha Mann told the Telegraph that consumers should be cautious when dealing with third-party claims management businesses “and carefully review any agreements before signing”.

“Consumers should deal directly with their insurer rather than a third-party service,” she said.

Karagiannis was sentenced earlier this year to one year and 10 months of imprisonment, to be served via an Intensive Correction Order, after being charged with dishonestly cause financial disadvantage by deception, following an investigation into fraudulent transactions while he worked as general manager at Suttons Motor Group in Homebush.

“My court appearance and conviction in February marked the end of a very painful chapter in my life,” he told the Sunday Telegraph.

“It related to events from almost a decade ago during my former employment in the motor industry.

“I deeply regret those actions. While I did not financially benefit, my employer suffered a loss — and I took full responsibility. Before sentencing, I had voluntarily repaid every dollar I cost my former employer. This was acknowledged in court.

“Since then, I’ve complied fully with all legal requirements and used the experience as a turning point to rebuild, grow, and contribute positively to my community.”

Karagiannis said Crash Claim “was founded as part of that rebuilding”.

“My wife and I have worked tirelessly to create a company that stands for integrity, transparency, and service.”

Nicholas Karagiannis and his wife Helen (pictured) are co-founders if one such company in the spotlight, called Crash Claim. Picture: crashclaim.com

Karagiannis defended the company’s handling of the case, saying its quote for the Mini Cooper involved, manufactured by BMW, was prepared in accordance with BMW’s OEM repair guidelines.

He said the “guidelines ensure that all structural, mechanical, and safety aspects of the vehicle are repaired to factory standards — preserving the integrity of the vehicle’s warranty, safety systems, and resale value.”

“It is common practice for some repairers to use economical repair methods that deviate from the manufacturer’s specifications. While these may appear more affordable, they can compromise structural safety, electronic calibration, and ultimately void the vehicle’s warranty.

“We believe the cheaper quote in this instance may reflect a cosmetic repair, rather than a complete and warrantable structural repair.”

In this specific case, the independent assessment prepared by Oracle Assessing indicated that the bumper bar alone exceeded $2000 in parts — excluding labour and electronic resets. For modern vehicles like this Mini Cooper, a full electronic reset of sensors typically costs an additional $800.

“The quote we received is consistent with BMW’s standards. My best guess is that the $2,000 quote obtained independently represents a cosmetic touch-up, not a full structural repair that meets manufacturer specifications and maintains the vehicle’s warranty.”

“The quotes do not compare apples with apples,” Mr Karagiannis said.

“One quote is for a cosmetic touch-up, while the other is an independent assessment conducted by Oracle Australia for a full repair to BMW warranty standards.

“It would be like getting water damage to a wall in your home, painting over it, and saying it is fixed.

“The owner of the damaged vehicle did not even receive a new bumper bar, which alone costs approximately $2,000, let alone have the underlying damage properly repaired.

Unfortunately, this will likely become an expensive lesson the owner will realise only in the future.”

“All of our assessment reports are sent to the at-fault party’s insurer, who may either:

a) conduct a physical assessment of the damage; or

b) perform a desktop review to approve or dispute the proposed scope and cost of repairs.

If the insurer agrees with the assessment, we proceed with the repairs. If they dispute it, negotiations are held until a resolution is reached. Only once agreement is reached is the repair carried out.”

“If people do not have insurance, or are experiencing financial hardship, we work with them with payment plans to be able to complete the required work. In fact there have been many instances in repairing clients’ cars for free where the at-fault party has no capacity to pay. “

“A letter of demand is our last resort. It is our last option to try and get the young man to communicate with us about his insurance details.”

“If people do not have insurance, if they do not agree with our quote, before any repairs are undertaken, it is always open for them to have an assessor of their choosing to inspect the vehicle, provide alternate independent assessment, and then negotiate/reach and agreed price for the subject repairs. In this assistance a resolution was not achieved and the vehicle was returned to our client. We waived the use of hire by our client as well as the assessment costs which our company wore in full. We also therefore retracted the letter of demand to the at fault party.”

NSW Fair Trading says businesses must comply with the Australian Consumer Law, including not misleading consumers. Anyone who believes they have been misled or treated unfairly should contact NSW Fair Trading on 13 32 20.