Replacement Vehicle
In the UK, a replacement vehicle is a temporary vehicle provided after a road accident or if your vehicle is stolen. You can obtain a replacement vehicle through your insurance policy or through an accident management company. An accident management company will provide you with a replacement vehicle, at no cost, on the same day until your vehicle is repaired at one of their approved garages.
The company will provide you with a replacement vehicle similar to your own or according to your needs, without any upfront charges. Courtesy cars, rental vehicles, and hire vehicles are all considered replacement vehicles. You can receive a replacement vehicle after a non-fault accident through credit hire services.
Replacement Vehicle Insurance Cover
If you are looking to get replacement vehicle cover through an accident management company in the UK, you need to contact the company after an accident, inform them that the accident was not your fault, and they will arrange a comparable replacement vehicle for you while your vehicle is being repaired.
The accident management company, acting on your behalf, will handle all communication with the at-fault driver’s insurance company to recover the costs and expenses. You will need to provide details about the accident and photographs of the vehicle damage, and they will manage the entire process of getting a replacement vehicle and submitting a claim against the other party’s insurance.
If you have a replacement vehicle from your insurance company after an accident, you can request replacement cover from your insurance.
Your insurance can add replacement vehicle cover to your policy, or you can have separate insurance for replacement vehicle cover, not included in your vehicle insurance.
Who Pays the Cost for a Replacement Car After an Accident?
After road traffic accidents, the cost of replacement vehicles is typically covered by the insurance companies. After reviewing the circumstances of the accident, the insurance company will decide who will pay the cost of the replacement vehicle. This depends on the accident’s liability. If the accident is a ‘fault’ accident, the provisional replacement vehicle charges will be covered by your comprehensive insurance policy. The accident for which you are liable results in an unrecoverable loss for your insurance company.
On the other hand, in the case of a non-fault accident, the provisional replacement vehicle charges are recovered by making a claim. The claim is submitted to the at-fault party’s insurance company, and no excess is required to be paid by you. The liable driver’s insurer is responsible for covering the cost of the provisional vehicle until the vehicle repair claim is settled. Always check with your insurance company to confirm if you are entitled to a courtesy car or a replacement vehicle.
Laws for Replacement Vehicle Rights
The concept of “mitigation of loss” applies in a non-fault accident. Mitigation of loss aims to reduce the overall damages or injuries suffered by the non-fault party.
After a road accident that is not your fault, the replacement vehicle is provided by an accident management company to mitigate your loss. The replacement vehicle helps avoid further expenses such as the cost of transportation, the inability to drive to work or school, and the loss of earnings due to the inconvenience.
Total Loss Vehicle
When a vehicle is declared a total loss after inspection, the non-fault driver can keep the replacement vehicle until the at-fault driver’s insurers agree on a settlement amount for the total loss vehicle. After receiving the settlement offer, the non-fault driver is given a 7-day grace period to purchase a new vehicle, during which they can use the replacement car. At the end of this 7-day period, the replacement vehicle will be collected by the credit hire company.
Repairable Vehicle
In the case of a repairable vehicle, the non-fault driver is eligible to keep the replacement car until their vehicle is fully restored and repaired. Once their vehicle is returned to them after repairs, the replacement vehicle will be collected by the hire company within 24 hours. The non-fault driver does not have to worry about the replacement vehicle as the accident management company handles this.
Replacement Vehicle for No Cost
In the UK, after a non-fault accident, the at-fault driver’s insurance company will pay for the cost of a replacement vehicle while your vehicle is being repaired. Essentially, you will not pay a single penny or any upfront cost for a replacement vehicle after a non-fault accident.
Key Points:
- Credit Hire: If you are a non-fault driver, you can contact a credit hire company to arrange a replacement vehicle. They will then claim the recovery of expenses and costs from the third-party driver’s insurance company.
- No Charges: When the accident is non-fault, you should not have to pay any cost for the replacement vehicle.
- Make A Claim: After an accident, you should contact your insurance company to report the accident and inform them that it was not your fault.
- No Excess Fee: In the case of a non-fault accident, you won’t need to pay an excess fee for a replacement vehicle.
Frequently Asked Questions
Who will pay for an accident in a company vehicle?
If a driver of a company vehicle is involved in an accident, they can claim compensation. The employer handles the insurance claim and reports the accident. The employee can speak to a personal injury solicitor for more information.
What is a replacement car?
A replacement vehicle is a temporary car provided to you while your vehicle is repaired. You can get a replacement vehicle through your insurance company or a credit hire company after an accident. It is provided to avoid inconveniences and keep you on the road.
Who pays for damage and injuries caused by a stolen vehicle in the UK?
The Motor Insurers’ Bureau can handle the claim and compensate the non-fault party if the accident is caused by a stolen, untraced, or uninsured vehicle.
How quickly can I get a replacement vehicle after an accident in the UK?
A comparable replacement vehicle can be provided within 24 hours after the accident. Accident Claims Assist will provide you with the replacement vehicle the same day after initiating your claim.
