Hire car accident - what to do?

Zudecke_2

Hi guys,

My sister is using a hire car as her car is being repaired for a non-fault incident.

Unfortunately she's had an at-fault accident (she's OK) while in the hire car.

The damage isn't really significant.. Just one hairline crack to her the front of her (hire) car and the boot is lodged ajar and will not close flush. Minimal damage to the third party vehicle, where the rear bumper also has a hairline crack.

There is a £500 exceed detailed in her agreement where the default policy is third party insurance cover.

What might be the full financial liability to her and any associated insurance premium hikes?

Will she need to pay the £500 + repairs out of pocket at whichever repairers the lessor chooses?

Many thanks

Z

DUTR

You may describe it as a hairline crack, however you are more than likely not a vehicle repair technician, a few dinks in my bumper equated to a £2k repair.
The other party and the hire company perhaps do not wish to drive or loan out beat up cars, and more than likely your sister doesn't either hence her car in for repair.
More than likely she will have to forfeit the deposit assuming no collision damage waiver wasn't purchased at the time of hire.
Oh.... don't forget she will have to notify her current insurer of the incident too.

facade

Surely the hire car has comprehensive insurance?
She should then only pay the £500 excess.
If she hit something at the front and twisted the boot she has done a lot more than £500 worth of damage to the car.

Her insurance will go up, and her no-claims will go down.

Zudecke_2

DUTR wrote: »

You may describe it as a hairline crack, however you are more than likely not a vehicle repair technician, a few dinks in my bumper equated to a £2k repair.
The other party and the hire company perhaps do not wish to drive or loan out beat up cars, and more than likely your sister doesn't either hence her car in for repair.
More than likely she will have to forfeit the deposit assuming no collision damage waiver wasn't purchased at the time of hire.
Oh.... don't forget she will have to notify her current insurer of the incident too.

There was no deposit as this was a hire car organised and paid for by a third party insurer who are handling her third party (non fault claim).

No collision damage waiver was purchased.

And I agree, the damage could be a lot worse than I described and yes, I am no technician.

facade wrote: »

Surely the hire car has comprehensive insurance?
She should then only pay the £500 excess.
If she hit something at the front and twisted the boot she has done a lot more than £500 worth of damage to the car.

Her insurance will go up, and her no-claims will go down.

I'm sorry I meant the bonnet!

I believe it's third party insurance, based on this statement from the T&Cs: "Where the Hire Vehicle is not insured by the Hirer mandatory third party insurance is provided at no additional charge by the Lessor".

How would she know if the hire vehicle IS insured by her? She never explicitly told her insurer about the hire car (she wasn't aware she had).

facade

Ring her insurer and find out.
If it is a hire car it will have its own fully comp insurance, and she pays an excess.
If it is a courtesy car arranged from the repairing garage through her insurer then it is likely covered by her insurance. Has she only got third party insurance? Better start saving up I'm afraid.

The good news is an excess only applies to comprehensive claims for repairs to your own vehicle so if there is a £500 excess then there must be comprehensive cover.

However £500 will probably only pay for a T-cut with a rag, so you wont see any change for a bumper repair and straighten the bonnet.

Quentin

Her paperwork from the hire company should show exactly what insurance cover she has.

AdrianC

And don't forget she'll be liable for lost revenue while the hire car is out of action, too, under the terms of the hire contract.

£500 excess is the maximum she'll be paying directly, though. The insurance will cover anything above that.

Zudecke_2

facade wrote: »

Ring her insurer and find out.
If it is a hire car it will have its own fully comp insurance, and she pays an excess.
If it is a courtesy car arranged from the repairing garage through her insurer then it is likely covered by her insurance.
It is a hire car agreement that was organised by insurer of the third party.

Has she only got third party insurance? Better start saving up I'm afraid.
She's fully comprehensive on her own insurance.

The good news is an excess only applies to comprehensive claims for repairs to your own vehicle so if there is a £500 excess then there must be comprehensive cover.

However £500 will probably only pay for a T-cut with a rag, so you wont see any change for a bumper repair and straighten the bonnet.
So in effect she'd have to pay out of pocket for the full extent of repairs? What's the point of insurance then?

Responses in line.

Quentin wrote: »

Her paperwork from the hire company should show exactly what insurance cover she has.

What I copy and pasted is what is mentioned about 'type of insurance'. It's very very unclear.

AdrianC wrote: »

And don't forget she'll be liable for lost revenue while the hire car is out of action, too, under the terms of the hire contract.

£500 excess is the maximum she'll be paying directly, though. The insurance will cover anything above that.

So the hire company can request the £500 excess + the daily hire rate of the hire car while it's being repaired?? So the duration is out of her control which would be worrying.

facade

Zudecke wrote: »

So the hire company can request the £500 excess + the daily hire rate of the hire car while it's being repaired?? So the duration is out of her control which would be worrying.

No: somebody's insurance will cough up for everything except the £500 excess.

So she has to pay £500.

Mr.Generous

The problem is the cost of the accident goes on her record, she pays the £500 excess yes, but expect a substantial premium hike at renewal, and for the next few years.

Zudecke_2

Thanks guys - clear.

Does she also need to let her insurer know? So far they've had nothing to do with the process.