Not at Fault? Your UK Credit Hire Entitlements

Disclaimer: This guide is general information, not legal advice. If you are unsure about any aspect of your claim, seek independent legal advice.

If you have been involved in a car accident that was not your fault, the at-fault driver's insurer owes you more than most people realise. Not just a repair. Not just a quick settlement cheque. A full package of losses, including a replacement vehicle for as long as you need one.

The problem is that most claimants do not know their rights, and the at-fault insurer is not going to volunteer the information. This guide sets out what you are actually entitled to, how credit hire works, and what to watch out for when the other side's insurer gets in touch.

1. You Are Entitled to a Like-for-Like Replacement Vehicle

This is the part that catches most people out. If your car is off the road because of an accident that was not your fault, you are entitled to a replacement vehicle. Not a basic runaround. A vehicle comparable to the one you have lost the use of.

The courts have been clear on this. A claimant who has been deprived of their vehicle through no fault of their own should be put back in the position they were in before the accident, as far as money can do it. That is a core principle of English tort law, and it applies to the vehicle you drive.

If you were driving an SUV, you are entitled to a similar SUV. If you were driving a van for work, you are entitled to a similar van. The at-fault insurer does not get to decide you can manage with something smaller or cheaper because it suits their costs.

2. What Is Credit Hire?

Credit hire is a service that provides a replacement vehicle to non-fault claimants at no upfront cost. The credit hire company supplies the vehicle and recovers the charges directly from the at-fault insurer as part of your claim.

This matters because most people cannot afford to hire a car out of their own pocket for weeks or months while waiting for a claim to settle. The courts have recognised this reality. In Lagden v O'Connor [2003], the House of Lords held that an impecunious claimant, one who cannot reasonably afford to pay for hire themselves, is entitled to recover credit hire charges even where those charges are higher than a basic spot hire rate.

What you get with credit hire typically includes:

A like-for-like replacement vehicle.
Delivery and collection at a time and place that suits you.
Comprehensive insurance cover on the vehicle.
No excess. If the hire vehicle is damaged, you are not liable for the first portion of the repair cost.
No upfront payment. The cost is recovered from the at-fault insurer.

This package of benefits is sometimes called the "basket of services." It is a significant point in credit hire disputes, because when insurers challenge the hire rate, the court will consider the full package, not just the daily vehicle cost in isolation.

3. The Insurer Will Probably Try to "Intervene"

Here is what typically happens. Shortly after the accident, the at-fault driver's insurer contacts you directly. They offer to provide a replacement vehicle themselves. They may tell you that you do not need a credit hire vehicle, that their offer is "equivalent," or that using credit hire could complicate your claim.

This is called intervention, and it is one of the most common tactics in credit hire disputes.

What you need to know about intervention offers:

The insurer's offer is not always what it seems. Under the case of Manton Hire v Ash Manor Cheese [2013], the Court of Appeal held that an intervention offer must contain sufficient information for the claimant to make an informed comparison. That means the specific vehicle, the delivery date, the terms and conditions, the insurance arrangements, and any excess payable.

If the offer is vague, if it says "suitable vehicle" without specifying the model, or if it does not confirm nil-excess cover, it may not be a genuine alternative. You are not obliged to accept it.

The nil-excess point is important. In Bee v Jenson [2007], the Court of Appeal confirmed that a claimant is entitled to reject an offer that would expose them to a financial liability they would not otherwise face. If the insurer's replacement vehicle carries an excess (and most do), that is a legitimate reason to prefer the credit hire vehicle, which typically carries no excess at all.

You are not being difficult by declining. The legal burden of proving you failed to mitigate your loss rests on the insurer, not on you. That was established in Copley v Lawn [2009]. They have to prove their offer was genuine, available, and comparable. You do not have to prove it was not.

4. How Long Can You Keep the Hire Vehicle?

You are entitled to a replacement vehicle for the reasonable period of repair, or in the case of a total loss, until you receive your settlement and have had a reasonable opportunity to replace your vehicle.

What counts as "reasonable" depends on the circumstances. If the repair takes three weeks, three weeks of hire is reasonable. If the insurer takes eight weeks to settle a total loss claim, hire for that period (plus a reasonable time to source a replacement) is justified.

The at-fault insurer does not get to drag out the settlement process and then complain about the length of hire. Copley v Lawn [2009] confirmed that the claimant is entitled to hire for the reasonable period, and delays caused by the insurer's own handling do not reduce that entitlement.

5. What About the Hire Rate?

Insurers frequently challenge credit hire rates. They argue that the claimant should have hired at a "basic hire rate" (BHR), which is the cheapest rate available from a mainstream hire company.

The courts have addressed this extensively. In Stevens v Equity Syndicate Management [2015], the Court of Appeal set out the proper approach: the court should consider the lowest rate available from a mainstream provider in the relevant area, taking into account the benefits provided. Those benefits, the "basket of services" mentioned earlier (delivery, collection, nil excess, comprehensive cover), are part of the comparison.

A bare daily rate from a budget hire company that requires a credit card deposit, charges an excess, and does not deliver the vehicle is not a like-for-like comparison with a credit hire package. The courts know this, even if the insurer's costs analyst does not mention it.

6. What You Should Do Right Now

If you have been in an accident that was not your fault, here is what to focus on.

Collect evidence at the scene. Photos of all damage, the road layout, and any relevant conditions. The other driver's name, address, registration, and insurance details. Witness contact details if available.

Do not admit fault. Even a casual "sorry" can be used against you. Liability is a legal question, not a matter of politeness at the roadside.

Report to your insurer. Most policies require you to notify them of any accident, even if you are not at fault.

Arrange your replacement vehicle. You do not have to wait for the at-fault insurer to offer you one. You have the right to arrange your own hire through a credit hire provider. The cost is recoverable as part of your claim.

Be cautious with the other insurer. If the at-fault insurer contacts you directly with an offer, read the terms carefully. Check the vehicle specification, the excess, the delivery timeline, and the conditions. If anything is vague or less favourable than what a credit hire company would provide, you are within your rights to decline.

Keep records of everything. Every cost you incur because of the accident, from taxi fares to parking charges to lost earnings, is potentially recoverable. Keep receipts.

Do not rush to settle. Early settlement offers are designed to close the file cheaply. If you are still in pain, still without your vehicle, or still incurring costs, it is too early to accept a final figure.

The Bottom Line

After a non-fault accident, the law is on your side. You are entitled to be put back in the position you were in before the accident. That includes a comparable replacement vehicle, at no cost to you, for as long as you reasonably need one.

The at-fault insurer's job is to minimise their payout. Your job is to know your rights. Now you do.