Credit Hire Service
Credit hire is a service that allows individuals involved in non-fault accidents to receive a replacement vehicle at no upfront cost. This service is designed to ease the inconvenience caused by road traffic accidents, ensuring you remain mobile while your car is being repaired. Let’s explore how credit hire works, its benefits, and how you can access these services in the UK.
Car Hire Claim After a Non-Fault Accident
The claims process can be straightforward if you need a replacement vehicle after a road accident. Depending on the circumstances, you may be eligible to claim the cost of a hire car from the at-fault driver’s insurance. Sometimes, the at-fault driver’s insurer may even provide a hire vehicle directly.
The charges may be recoverable from the at-fault party’s insurance if you arrange to hire a vehicle after a non-fault accident. However, there are conditions to follow to ensure cost recovery:
- The hire charges should align with standard rates or comply with GTA (General Terms Agreement) standards.
- The hire vehicle should be in the same category as your car. If your car is older or of a different type, a downgrade in the vehicle group may be required.
- The hire duration should be kept to a reasonable minimum.
Hire vehicles are categorized based on size, model, specifications, and type, each with a set daily hire rate considered reasonable. These rates typically include insurance and hire costs. Securing a hire car after a non-fault accident ensures mobility, with the reassurance that costs can be recovered as part of your claim.
How Credit Hire Companies Work
Initial Communication: After an accident, you contact a Credit Hire Company, which assesses your eligibility based on the accident being non-fault.
Hire Vehicle Provision: If you qualify, the Credit Hire Company provides a replacement car similar to your own, ensuring minimal disruption to your daily life.
Hire Cost Recovery: The Credit Hire Company recovers the hire charges directly from the at-fault driver’s insurer, so you don’t have to pay upfront.
What do we require from you?
Once we receive your instructions, we will speak with the hirer who obtained the credit hire car to discuss the claim and request the necessary information, including:
Details of Losses: A breakdown of recoverable losses from the at-fault insurer.
Financial Statements: The court and the defendant’s insurer may require proof to determine whether you needed a credit hire service or could afford to repair your vehicle independently.
Details of losses to be recovered from the Faulty insurance
If you have been involved in a non-fault accident and need assistance recovering credit hire charges, please get in touch with our credit hire team at 0203 642 8857.
Who Pays for The Hire Car?
Suppose a negligent driver damages your vehicle to the extent that it becomes unroadworthy. In that case, their insurance is usually responsible for covering the cost of a comparable hire vehicle until your claim is settled.
However, your insurer may also provide a hire car facility. Using your insurer’s hire service may be a convenient alternative, reducing the need to recover charges separately.
What is Impecuniosity?
If the non-fault driver cannot afford a replacement vehicle upfront, they may be eligible for a credit-hire vehicle through a credit-hire company.
The court may require the individual to provide bank statements or wage slips to determine financial eligibility.
If the non-fault driver is not considered impecunious, the at-fault driver’s insurer must prove that a hired car would have been available at a lower rate.
Why Credit Hire Claims Are Disputed
Although credit hire assists accident victims, disputes often arise between credit hire companies and insurers. Common reasons for disputes include:
- The at-fault driver’s insurer challenges liability for the accident.
- The insurer argues that the hire charges exceed reasonable or standard rates.
- Disagreements throughout the hire period.
If disputes cannot be resolved, the credit hire company may pass the claim to solicitors to recover outstanding hire charges on behalf of the client.
Do I Have to Be in the Vehicle During Accident to Claim Hire?
No, you do not need to be in the vehicle at the time of the accident to claim hire. Vehicles are often damaged while parked or unattended.
If your car is damaged by another vehicle, you will likely be eligible for a hire car or courtesy vehicle, with costs covered by the at-fault party’s insurer until your claim is settled.
What Type of Courtesy Car Can I Claim?
You are generally entitled to a comparable courtesy car after a non-fault accident. However, this may depend on your vehicle’s age and type, such as whether it falls into a prestige or standard category.
Following credit hire protocols, you are typically eligible for a courtesy car until your vehicle damage or total loss claim is resolved. During this time, the at-fault driver’s insurer should cover the cost of a comparable replacement vehicle.
Will Claiming to Hire Affect My Car Insurance?
A road accident can impact your insurance coverage, so checking your policy for clarification is essential. Both fault and non-fault accidents may affect your premium. Claiming hire is considered a separate head of claim but could still be a factor in future policy renewals.
Get Expert Assistance
At Accident Claims Assist, we specialize in helping individuals recover credit hire charges following non-fault accidents.
For expert guidance and assistance, contact our experienced team today:
📞 Call us on 0203 642 8857
📝 Fill out our online claim form to get started.
