Highway Insurance has parted company with claims management service provider Auto Indemnity.It will now take over the management of accidental damage claims itself bringing an end to its two year relationship with Auto Indemnity.

A spokesman for Highway said: "As part of our continued commitment to provide shareholder value and develop customer service, Highway has taken the decision to bring the management of accidental damage claims back in-house."

Its involvement with Auto Indemnity, which specialises in accident management services, cost containment and vehicle repair, will reduce in the next few months as the company develops its in-house capability.

The partnership is expected to end in the final quarter of this year.

The spokesman added: "We will continue to work closely with AI to ensure a smooth transition for all parties and we thank AI for their professionalism during this process."