QUICK ANSWER
A courtesy car may be included in your insurance or repair service. Credit hire is a separate car-hire agreement. The hire company tries to get the cost back from the other driver’s insurer. Check what you might have to pay if it cannot.
Policy courtesy car
Your insurance may include a courtesy car while an approved garage repairs yours. Check what size car you can get and how long you can keep it. Cover may not apply if your car is stolen or written off, or if you choose your own garage. Read your policy to find out.
Credit hire
With credit hire, you sign a separate hire agreement. The company usually asks the other driver’s insurer to pay later.
You may need to show why you need the car, provide evidence and avoid extra costs where possible. Payment may be disputed because of fault, your need for a car, the daily rate or how long you hire it.
Questions before accepting any vehicle
- Which company am I signing the agreement with?
- Is this a policy benefit, direct hire or credit hire?
- What is the daily rate, likely total cost and amount I could have to pay?
- What happens if fault is shared or disputed?
- What help or proof of my finances might you need from me?
- Does the car meet my needs without adding costs I could avoid?
- What insurance, excess, mileage and return terms apply?
Keep costs down where you can
If you claim back costs, you generally need to take reasonable steps to keep them down. Tell the hire company when your car is repaired or replaced, or you no longer need the hire car. Keep proof of why you needed it. Consider other ways to travel where they meet your needs.
If you are unsure
Do not rely on “free replacement car” language. Ask for the full agreement and a clear explanation of what you could have to pay before signing. If something goes wrong, complain to the company first. Ask what you can do next if it does not resolve the complaint.
Courtesy car, ordinary hire or credit hire?
| Option | How it is arranged | What to check |
|---|---|---|
| Policy courtesy car | A benefit under your policy or repair arrangement. | Whether your cover includes it, when it ends, vehicle size, insurance and excess. |
| Ordinary car hire | A rental you or another party pays for under a hire contract. | Who pays the bill, deposit, daily rate, insurance and whether anyone has agreed to pay you back. |
| Credit hire | You sign a separate hire agreement. The company usually asks the other driver’s insurer to pay later. | What you might owe if the other insurer does not pay, and what help or evidence you must give. |
The name “courtesy car” does not tell you who pays. Ask which agreement you are being offered and read it before you accept the car.
Sources and further help
- Financial Ombudsman Service: credit hire and credit repair — consumer complaint guidance
WANT TO DISCUSS WHAT HAPPENED?
Need help after a non-fault accident?
Call to ask about recovery, repairs or a replacement car. Have the details you know ready. Ask who will help, what you must sign and what you might have to pay.