Credit Hire After A Non-Fault Accident
Credit hire is supplied under a separate agreement, not as part of your motor insurance policy, and it is not a free courtesy car. Before agreeing, check what other transport is realistically available, ask what the hire costs and who pays if the charges are not recovered, and understand what you may be asked to do afterwards.
If another driver appears to have caused an accident and your vehicle cannot be used, credit hire may be offered as a way of obtaining temporary replacement transport. It can be useful, but it is not a free courtesy car and it does not form part of your motor insurance policy.
Credit hire is supplied under a separate agreement. The hire company normally intends to recover reasonable charges from the at-fault driver’s insurer. Recovery is not automatic. Responsibility for the accident, the need for a vehicle, the type of vehicle, the daily rate and the length of hire can all be challenged.
§ 01Check the alternatives first
Before agreeing, find out what other transport is realistically available. Your own policy may include a courtesy vehicle. The other driver’s insurer may make an offer. Another household or business vehicle, public transport, taxis or short-term arrangements may meet some or all of the need. Compare the routes on credit hire against your own insurance.
Do not reject an available option without understanding it. Record what was offered, when it could start, how long it would last and why it was or was not suitable. A later dispute may examine whether reasonable steps were taken to keep the loss down.
§ 02Ask about the price and the risk
Request the daily hire rate and a copy of the agreement before signing. Ask:
- who is expected to pay the charges;
- what happens if liability is disputed;
- what happens if the insurer disputes the rate or length of hire;
- whether you could ever be asked to pay;
- what documents or cooperation may be required;
- when the hire should end;
- what insurance, mileage, fuel, damage or additional-driver terms apply.
If an answer matters to your decision, ask for it in writing.
What other transport was available, and when.
The daily rate and what else the agreement charges for.
Why a replacement vehicle was reasonably required.
What the agreement asks of you, during and after the hire.
§ 03Explain the real need
A replacement vehicle should reflect a reasonable need, not an automatic entitlement to an exact match. Explain what the vehicle is used for, who needs it and which features are genuinely necessary. Availability and the individual circumstances still matter.
Whether a hire was needed at all, for how long, at what rate and in what class is decided on the evidence in each case. See what decides whether a hire was reasonable.
§ 04Keep the position under review
Respond to reasonable requests, keep repair or total-loss updates and tell the provider if another vehicle becomes available or your circumstances change. Do not continue the hire simply because no one has told you to stop; ask for the end point in writing.
§ 05If recovery is disputed
The provider may ask you for documents, a witness statement or attendance at court. The Financial Ombudsman Service explains that customers may be required to cooperate and, depending on the agreement and circumstances, could face liability if they do not. It also notes that a complaint about an independent accident-management company may fall outside its power unless the issue concerns an insurer’s involvement.
Read the agreement, keep a complete evidence file and obtain independent advice if a significant dispute develops. See what happens if liability is disputed.
§ 06Before you decide
Know who is providing the service. Check the agreement, alternatives, daily rate, payment position and your responsibilities. Credit hire can meet a genuine replacement-transport need, but the decision should be informed rather than treated as automatic.
§ 07Sources
- Financial Ombudsman Service, Credit hire and credit repair services following a “no-fault” accident — page states “Last updated: 10 July 2026”. Source for the agreement being entered into outside the motor policy; for “there is no guarantee that the third-party insurer will cover those costs”; for the warning that where the third-party insurer disputes liability or the amount of the costs “you may have to cooperate in the recovery of or even become liable for those costs”; and for the position that the Ombudsman cannot usually consider complaints about an accident management company for the service provided under a credit hire agreement, though it can look at whether an insurer or broker acted fairly when referring a consumer. financial-ombudsman.org.uk. Checked 04/09/2026.