What is Credit Hire and how can it help you get back on the road?

Credit Hire may not be a term you’ve come across before, but you may actually be aware of the concept without realising it. Putting aside the initial trauma of a road accident that isn’t your fault, one of the biggest problems that motorists can face is a loss of mobility especially if their car has been badly damaged in an accident.

While some insurance companies offer the use of a courtesy car while your own vehicle is being repaired, a car that has been so badly damaged that it is considered to be a write-off by the insurance company can leave you stranded with no alternative transport. This is where credit hire comes in.

Protecting the innocent

Credit Hire is a service set up to protect drivers who are innocent victims of accidents. The service is supplied either from the ‘at-fault’ party’s insurance company or from the victim’s own provider. This is particularly important for people who rely on their car for their job, such as sales representatives. In today’s economy, more companies are abandoning the ‘company car’ ideal so drivers are often forced to use their own vehicles for their work. If their car is damaged in an accident that wasn’t their fault then it can put their very job at risk.

Credit Hire operates under General Terms of Agreement, which is an agreement that has been reached between credit hire companies and the insurance industry. This means that standard daily hire rates are agreed under the Association of British Insurers’ General Tariff Agreement, so that insurance companies are charged the same rates regardless of which credit hire company they work with. Under this agreement the at-fault party’s insurer is invoiced for car hire at an agreed daily hire rate and the bill is settled directly. This means that the accident victim does not have to worry about paying for a hire car and then spending months trying to recuperate the expenditure from their insurance broker.

The small print…

However, there are some restrictions. Any claim for car hire charges can only be made against the at fault party in a non-fault accident where:

The general rule is that Credit Hire companies will supply a replacement vehicle on a ‘like for like’ basis – so if your usual car is a Mini then that is what the Credit Hire company will supply you with.

So if you’ve been involved in an accident that wasn’t your fault and your insurer does not provide a courtesy car as part of your insurance package, it may be worth talking to your solicitor to find out if a Credit Hire company could get you back on the road quickly. If your job depends on you being mobile, it could be an important part of getting your life back on track after an accident.

Back to all news

Share Article With:

Free Course Enquiry Form

Please complete this short enquiry form (no cost or obligation) and we will get back to you.




    Type of Course/ Nature of Enquiry

    What Our Clients Say

    The problem when attending any personal injury legal training course is knowing whether you are actually going to learn anything new or find a different perspective, or whether you will just hear the same things that you have heard many, many times before.

    The good news with MASS Training is that you know it is always going to be the former case. MASS’ courses are practical, informative and excellent value for money. My staff always come back feeling inspired and energised by having their existing knowledge and expertise confirmed, but also by picking up some new practical steps that they can immediately implement to make them more efficient in their day to day tasks.

    I have absolutely no hesitation whatsoever in wholeheartedly recommending MASS Training to anyone looking for Personal Injury Training. It is the best training available.

    MASS Training provide excellent content. The fact that they are in the main practising solicitors or legal executives means that not only do they fully understand their specialist subject matter, but they also know how to use this knowledge in the day to day running of their case load.

    If they are not currently running a course covering the area of law that they are interested I know that if I suggest it to them they will be happy to prepare a course for us either in-house or generally within a matter of weeks.

    We have in the past, and continue to, send our staff on the MASS Diploma Course, an excellent opportunity to develop essential skills and understanding for running RTA matters. If you are not yet ensuring your staff attend MASS Training courses, you are missing out on some of the best Personal Injury Training available.

    Very informative. Easy to understand. Not a typical course which you can easily lose concentration

    Thoroughly enjoyed it! It was both informative and practical, the fact it was quite hands on and interactive made the subject matter come to life and the topic elements sink in to some sort of structure! I feel like I actually understand some of the fundamental elements

    click here to

    Why Choose Us?

    • Practical, interactive courses
    • Delivered by solicitors
    • Flexible training from bespoke to in-house, seminars to webinars

    Sign Up For Course Alerts

    Enter your details below to be the first to hear about new training courses, to receive social offers and to ensure that you stay ahead of the competition