No Fault Accident & Credit Hire Companies

neilmcl

Just before Xmas my car was knocked into by another driver who lost control in the snow, they've admitted liability and we exchanged details. As I wanted to get a like-for-like replacement vehicle as well as having my car repaired at the BMW body shop of my choosing I've decided to use the dealer's own accident management service called SytnerDrive, I believe this is in turn run by Swift. As with all of these types of service the replacement vehicle is provided on a credit-hire basis. I've used such services before with no problems.

However, I've since received a letter from the other driver's insurance co. (Admiral), who are offering to get my car repaired and with a replacement vehicle "suitable to your needs" - whatever that means. They then go on to say that if I choose to use a Credit-Hire company they (Admiral) will refuse to pay.

Has anyone experienced this sort of thing, particularly with Admiral, and will they carry out their threat and refuse to pay the credit-hire?

dacouch

Do you understand what a Credit Hire is?

Are you aware who is responsible for the very high charges if the other Insurer does not pay them within 51 weeks?

mchale

You choose the garage you want your car repaired at, as for the replacement vehicle if yours is a 5 seater and they supply a 5 seater then I don't think you have a case to argue, as they have given you "like for like", all be it the badge on the front might not be the same.

Premier_2

Whilst your car is being repaired, you are entitled to claim the reasonable costs of an alternative. As the other party are paying, go for a direct replacement if that is what you want.

It's only if your own insurer is paying for replacement transport (in the case you caused the accident) are you restricted as to what they offer.

I'm not sure what the "credit-hire" deal is, but as long as the costs are competitive (compared to say hiring a rental car from one of the big rental firms) I can't see the issue.

Anihilator

You better comply.

If you don't then they wont pay out. You have an obligation to minimise your losses and choosing a credit hire despite them offering a hire car and repair isnt doing thatr.

neilmcl

dacouch wrote: »

Do you understand what a Credit Hire is?

Are you aware who is responsible for the very high charges if the other Insurer does not pay them within 51 weeks?

Yes, which is why I'm asking the question. :rolleyes:

neilmcl

Anihilator wrote: »

You better comply.

If you don't then they wont pay out. You have an obligation to minimise your losses and choosing a credit hire despite them offering a hire car and repair isnt doing thatr.

I'm thinking I might just do that. I've used these accident management companies before, albeit this is the first I've used via the dealership, and I've never had an issue with the 3rd-party insurer refusing from the off to pay out if I continue to use this type of service.

pitkin2020

surely you need to approach your insurer about this as they should be dealing with it

Pete*G_4

Anihilator wrote: »

You better comply.

If you don't then they wont pay out. You have an obligation to minimise your losses and choosing a credit hire despite them offering a hire car and repair isnt doing thatr.

spot on. correct answer here, as my dad found out a couple of years ago to his cost...

neilmcl

pitkin2020 wrote: »

surely you need to approach your insurer about this as they should be dealing with it

Why should they. You own insurer only needs to be involved if you have a claim against you, or you're making a claim on your own insurance. Why would you want to jeopardise your own premiums for no reason.

dacouch

neilmcl wrote: »

Yes, which is why I'm asking the question. :rolleyes:

You have no doubt picked up on the references to you being responsible for the hire then if they cannot recover.

There are plenty of people who have found out that a credit hire is in effect the credit hire company hiring you a car on a loan that you have to pay if they do not recover the costs from the third party within the 51 weeks. If you look at the cost of the car on the hire agreement you have signed it is probably circa £120 a day which mounts up over a few weeks especially as the garage and hire company often conspire to hang the job out to get extra days hire out of the job.

Some (Not all) CH companies will not pursue you for the money and some (Not all) will ask you to pay a reduced amount if they cannot recover the money. If you have a look on the MSE site, moneysupermarket you will find quite a few horror stories. If you look on the honest john site he hates them and there are many bad stories.

It is fairly rare for a CH not to be able to recover but when it happens it can end up costing the driver thousands of pounds.