Credit Hire Claims in the UK

 Introduction

Being involved in a non-fault car accident can be a stressful experience. Not only do you have to deal with the damage to your vehicle, but you're also left without transportation. Credit hire claims offer a solution in this situation, allowing you to maintain mobility while your car is being repaired or written off. This guide will explain everything you need to know about credit hire claims in the UK, from eligibility criteria to the claims process.

Eligibility Criteria and Time Limits

To be eligible for a credit hire claim, you must meet the following criteria:

• You were involved in a non-fault accident.
• Your vehicle requires repairs or is written off.
• You need a replacement vehicle while yours is unavailable.

There's also a time limit for making a credit hire claim. Typically, you have three years from the accident date to initiate the claim process. However, it's best to act promptly to avoid any potential complications.

Gathering Evidence

Strong evidence is crucial for a successful credit hire claim. Here's what you need to gather:

• Accident details: Date, location, time, and a brief description of the accident.
• Police report: If a police report was filed, obtain a copy.
• Witness statements: If there were witnesses, get their signed statements.
• Vehicle details: Registration documents, proof of ownership, and service history.
• Repair estimates or write-off confirmation: Documents from a reputable repair shop or your insurer confirming the damage to your vehicle.
• Credit hire agreement: The contract you signed with the credit hire company.
• Proof of loss of use: Evidence showing how the lack of your vehicle impacted your daily routine (e.g., receipts for public transport usage).

Claiming Compensation

The credit hire company will typically handle the initial claim process by contacting the at-fault party's insurance company. They will negotiate the cost of the hire car and any additional losses you incurred.

However, it's still beneficial to be involved and understand the process. You may need to provide additional information or answer questions from the credit hire company or the other insurer.

Claim Compensation Amounts

The compensation you receive in a credit hire claim can include:

• The cost of the credit hire vehicle: This covers the rental charges for the replacement car during the repair period.
• Loss of use: Compensation for the inconvenience of being without your vehicle, such as public transport costs or missed work opportunities.
• Vehicle depreciation: If the accident diminished your car's value, you might be entitled to compensation.

Process Steps to Get a Credit Hire Claim from the Insurance Company

Credit Hire claims can be a helpful solution for non-fault drivers whose vehicles are damaged in accidents. Here's a breakdown of the steps involved in getting a Credit Hire claim settled:

1. Immediately After the Accident:

• Ensure Safety: Check for injuries and secure the scene if necessary.
• Gather Information: Exchange details with the other driver(s) involved, including names, addresses, phone numbers, and insurance information. Collect details of any witnesses present.
• Document Everything: Take photos of the accident scene, damage to all vehicles involved, and any relevant road signs or markings.

2. Contact Your Insurance Company:

• Inform them of the accident and mention you're considering a Credit Hire claim. While not directly involved in recovering the costs, they may offer guidance or recommendations for reputable Credit Hire companies.

3. Contact a Credit Hire Company:

• Research and choose a reputable Credit Hire company with a good track record.
• Explain the situation and discuss your needs for a replacement vehicle.

4. Credit Hire Agreement:

• The Credit Hire company will provide a detailed agreement outlining the terms and conditions, including:
  • The type of replacement vehicle provided.
  • The daily rental rate.
  • Any additional fees associated with the service (mileage limits, breakdown assistance etc.).
• Carefully review and understand the agreement before signing.

5. Vehicle Delivery and Repairs:

• The Credit Hire Company will arrange for a comparable replacement vehicle to be delivered to you.
• You can then use the replacement vehicle while your car is being repaired or written off.

6. Credit Hire Company Takes Over:

• The Credit Hire Company will handle contacting the at-fault party's insurance company on your behalf.
• They will seek to recover the rental charges for the replacement vehicle from the at-fault driver's insurance.

7. Claim Resolution:

• The Credit Hire Company will negotiate the claim with the at-fault party's insurance company.
• This process might involve discussions regarding the reasonableness of the rental period and daily rate.
• You may be contacted for additional information or clarification if needed.

8. Claim Settlement:

• Once an agreement is reached, the at-fault driver's insurance company will settle the claim by paying the Credit Hire Company directly.

Additional Points:

• Stay Informed: Maintain communication with the Credit Hire Company regarding the claim progress.
• Keep Records: Retain copies of the Credit Hire agreement and any communication related to the claim.
• Legal Advice (Optional): For complex cases, consider consulting a solicitor to ensure your rights are protected during the Credit Hire claim process.

Important Note:

• While Credit Hire offers benefits, it's crucial to understand the potential drawbacks. Credit Hire companies charge fees, and any delays in settlement by the at-fault party's insurance could impact the final cost.

By following these steps and understanding the process, you can leverage Credit Hire claims effectively to access a replacement vehicle after a non-fault accident in the UK. Remember to choose a reputable Credit Hire company, carefully review the agreement, and stay informed throughout the claims process.

Importance of Documentation

Throughout the process, keep detailed records of all documents, communications, and receipts related to the accident, repairs, and the credit hire car. This ensures you have everything readily available if needed.

Advantages of Credit Hire Claims

Credit hire claims offer several benefits to victims of non-fault car accidents. Here are some key advantages:

• Maintain Mobility: This is perhaps the biggest advantage. With a credit hire car, you don't have to worry about disruption to your daily routine due to lack of transportation. You can continue with work, errands, and other activities while your car is being repaired or replaced.
• No Upfront Costs: Unlike renting a car yourself, credit hire allows you to access a replacement vehicle without paying upfront. The credit hire company handles the initial costs, and you only incur a fee if the claim is successful against the at-fault party's insurer.
• Stress-free Process: The credit hire company takes the burden off your shoulders by managing most of the communication and negotiation with the other driver's insurance company. This frees you up to focus on recovering from the accident.
• Maximize Compensation: A well-supported credit hire claim with proper documentation can ensure you receive the full amount you deserve for the inconvenience caused by the accident. This includes not just the rental cost of the replacement car but also potential loss of income and depreciation in your vehicle's value.
• Protects Your No Claims Bonus: If you claim through your own insurance for a non-fault accident, it might affect your no claims bonus and potentially lead to higher premiums. Credit hire claims bypass your insurance entirely, keeping your no claims bonus intact.
• Faster Resolution: Credit hire companies often have experience dealing with insurance companies, which can lead to a faster resolution of your claim compared to handling it yourself.

Conclusion

Credit hire claims can be a valuable tool after a non-fault accident. By understanding the eligibility criteria, gathering evidence, and following the process steps, you can ensure a smooth experience and receive the compensation you deserve. Remember, seeking legal advice can be beneficial if the situation becomes complex.

Disclaimer

This guide provides general information and should not be considered legal advice. It's always best to consult with a qualified professional for specific guidance on your situation.

FAQs

1. What is the eligibility criterion for a credit hire claim?

You can claim credit hire if:

• You weren't at fault in the accident.
• Your car needs repairs or is written off.
• You need a replacement car while yours is unavailable.

1. How long do I have to make a credit hire claim?

Generally, you have three years from the accident date to initiate the claim. However, acting promptly is recommended.

1. What documents do I need for a credit hire claim?

• Accident details (date, location, etc.)
• Police report (if available)
• Witness statements (if applicable)
• Vehicle documents (registration, ownership, service history)
• Repair estimates or write-off confirmation
• Credit hire agreement
• Proof of loss of use (e.g., public transport receipts)

1. Who handles the claim process?

The credit hire company typically initiates the claim with the at-fault party's insurer. However, it's good to be involved and understand the process.

1. What can I claim compensation for?

• Cost of the credit hire vehicle
• Loss of use (inconvenience caused by not having your car)
• Vehicle depreciation (if the accident lowered your car's value)