Credit hire

Credit hire companies provide and repair vehicles after an accident when someone is to blame. They can help protect your insurance record, and that means your premium and no claims bonus.

Their business is based on you being blameless, and someone else being responsible, and that person having insurance.

The situation usually looks like this. Your vehicle is off the road for repairs and you need a replacement car for a fortnight. Your own insurer may not be keen to give a courtesy car, and the body shop has none available. Do you take taxis or hire a car, and can you afford the expense? Credit hire and repair give you an option. You sign an agreement accepting liability for the cost of hire and repair, and if the hirer is confident someone else is to blame, and they have insurance in place, they will provide a vehicle. The idea is to recover the cost from the insurer of the person to blame, and you pay nothing.

The benefit to you is that you do not have to make a claim on your own insurance. If you make a claim on your own policy your premium will increase and your no claims bonus will be affected. If your own insurer pays your record is affected, even when someone else is to blame.

Some insurance companies will chase for reimbursement from the insurer of the driver to blame, but many do not.

Credit hire companies do get stick for their hire rates, but to be fair they do exist because insurers will not pay for alternative transport when your car is in for repair. The respectable credit hire companies have agreements on rates with the insurance industry. There are good and bad credit hire companies. For them to be paid you must be liable to pay the hire. You must beware of ending up with the bill in your hand. Take advice from an experienced solicitor who knows the work of the credit hire company.

Not all insurers are tight on courtesy vehicles, but if you have bought your policy on price do not expect first class service. If an insurance company offers a courtesy car the expense is usually covered by the body shop doing your repairs, or by a credit hire company. The insurance companies have found ways of providing a service without bearing the cost. That is to their credit as it allows them to be competitive on premiums, and cheap premiums are what we want.