Courtesy Car or Credit Hire? Check the Difference First

Policy courtesy car

A courtesy car may be a policy benefit or provided while an approved repairer works on the vehicle. Size, duration and availability depend on the wording and repair route. It may not be available after theft, total loss or when a chosen repairer is used. Read the actual policy rather than relying on the label.

Credit hire

Credit hire is a separate hire agreement. The provider commonly seeks the charges from the at-fault party’s insurer later. You normally still sign a contract and may have duties to cooperate, show a genuine need for the vehicle and limit avoidable loss. If liability, need, rate or duration is disputed, recovery may be contested.

Questions before accepting any vehicle

• Who is the contracting provider?
• Is this a policy benefit, direct hire or credit hire?
• What is the daily rate and estimated total exposure?
• What happens if liability is split or denied?
• What cooperation or financial evidence could be required?
• Does the vehicle match a reasonable need rather than preference?
• What insurance, excess, mileage and return terms apply?

Keep loss reasonable

People claiming costs generally have a duty to take reasonable steps to limit avoidable loss. Tell the provider if your own vehicle is repaired, replaced or no longer needed. Keep evidence of why a replacement was required and consider practical alternatives where reasonable.

If you are unsure

Do not rely on “free replacement car” language. Ask for the full agreement and a plain explanation of personal exposure before signing. If a dispute develops, complain first to the relevant business and then use the escalation rights it explains.