Credit Hire Explained
If you have a road traffic accident which is not your fault and your car is made un-roadworthy by the accident you are entitled to obtain a replacement vehicle on a like for like basis. If you cannot afford to pay for repairs or a replacement car "upfront" the Law allows you to obtain a replacement vehicle on a Credit Hire basis. THIS IS NOT A COURTESY CAR. The Credit Hire charges are more than the "upfront" hire charges because the Hire Company is not going to be paid at the start of the Hire period.
In order to recover the increased Credit Hire charges the Court will need to be satisfied that you cannot pay for either the repairs to your vehicle or to cover the cost of a replacement vehicle without incurring an unreasonable sacrifice. The Court will generally require to see 3 months Bank/Building Society and Credit Card statements for a period of 3 months prior to the accident and then throughout the hire period. The Court may in addition also require to see evidence of income for the same period. Whether the Court will consider you to be impecunious (i.e. unable to pay upfront Hire charges) depends upon your circumstances. It isn't simply a question of how much money you earn. Some people may earn a considerable amount of money but they may have significant outgoings like a large mortgage or school fees or something of that sort. We will be able to give you advice as to whether or not you are likely to establish that you are impecunious or not.
We arrange access to Credit Hire vehicles of all kinds Nationwide including plated Taxis, Coaches and other specialist vehicles as well as what might be regarded as standard vehicles.
It's important to realise that even if you have a Comprehensive insurance policy you are still entitled to pursue a claim for a replacement vehicle on a standard hire basis or a credit hire basis without having to make a claim on that policy. There is no need for you to lose your No Claims Bonus or to pay an excess because someone else has crashed into you.
You need to be aware that Defendant Insurance Companies may seek to persuade you that you should accept a car offered by them. Such cars are often not on a like for like basis. The availability of the vehicle may be limited in time and may require a deposit. They may also not include things like satellite navigation. There may be issues about excesses and waivers and insurance cover, particularly if you are a young driver or you have got a poor driving record. You should never accept an offer of a replacement vehicle from a Defendant Insurer without taking Legal advice.