Can one refuse credit hire company courtesy car?

MarcoM

Hello, I was involved in a non fault accident, hit and run (we have the offending vehicle details) and my insurer LV has passed the courtesy car onto a credit hire company. Can I refuse this and ask that the LV sort the issue without delegating it to a credit hire company? I've read these can be a problem.
Thanks

Grey_Critic

Your contract is with LV - they do not have cars so I would assume that they are in effect sub-contracting.

My clients sub-contract on a regular basis but are legally responsible for their actions.

If you were for some reason have a problem with the credit hire company and it went to court you would sue LV not the hire company as your contract is not with them.

MarcoM

My understanding is the opposite to yours. 
I've read that the agreement is between the driver and the credit hire company and if the third party disputes the claim or its cost, the credit hire can come after me.
I could be wrong. 

Aretnap

If the terms of your policy entitle you to a courtesy car then yes you can insist that your insurer provides one under the policy terms rather than referring you to a credit hire company.

However what you are entitled to under the policy terms may well be less than you would be entitled to under a credit hire agreement. For example you might only get a small runabout rather than a car of roughly similar size and spec, or you might only get it for a fixed amount of time (and tough luck if your repairs take longer than that). Check the terms of your policy to see what you would be actually entitled to.

The notion that you can end up having to pay the costs of a credit hire car yourself if the third party insurer disputes it is widely misunderstood. In theory you have to be liable for the costs (otherwise they cannot be reclaimed from the third party insurer - you can't claim for costs that you haven't incurred). However in practice in 99% of cases the credit hire agreement includes a clause asking the lines of "your liability is limited to the third party's liability" which means that you never have to pay more than the credit hire company successfully claims from the insurer on your behalf.

The only exceptions are if (1) you mislead the credit hire company about the customers of the accident or (2) if you don't cooperate with them when it comes to recovering their fees from the third party insurer, in which case you could become liable yourself.

A third option is that you contest the third party insurer yourself and ask if they will provide you with a like for like hire car. If liability is not in dispute they will probably jump at the chance to arrange one themselves rather than end up paying the inflated fees charged by credit hire companies.

MarcoM

Aretnap said:

If the terms of your policy entitle you to a courtesy car then yes you can insist that your insurer provides one under the policy terms rather than referring you to a credit hire company.

However what you are entitled to under the policy terms may well be less than you would be entitled to under a credit hire agreement. For example you might only get a small runabout rather than a car of roughly similar size and spec, or you might only get it for a fixed amount of time (and tough luck if your repairs take longer than that). Check the terms of your policy to see what you would be actually entitled to.

The notion that you can end up having to pay the costs of a credit hire car yourself if the third party insurer disputes it is widely misunderstood. In theory you have to be liable for the costs (otherwise they cannot be reclaimed from the third party insurer - you can't claim for costs that you haven't incurred). However in practice in 99% of cases the credit hire agreement includes a clause asking the lines of "your liability is limited to the third party's liability" which means that you never have to pay more than the credit hire company successfully claims from the insurer on your behalf.

The only exceptions are if (1) you mislead the credit hire company about the customers of the accident or (2) if you don't cooperate with them when it comes to recovering their fees from the third party insurer, in which case you could become liable yourself.

A third option is that you contest the third party insurer yourself and ask if they will provide you with a like for like hire car. If liability is not in dispute they will probably jump at the chance to arrange one themselves rather than end up paying the inflated fees charged by credit hire companies.

Thank you for the comprehensive reply. 
The problem with this accident is that the guy did not stop.
I have good footage on dashcam but if I called his insurers I don't think
they would help as no doubt the accident has not even been reported to them. 

EssexExile

For us LV= sorted it themselves through Enterprise. May be worth asking if they will do this for you, explaining your misgivings about credit hire companies. We found LV= to be very accommodating, although we had a difference of opinion about what "similar size hire car" meant.

daveyjp

I've never had a credit hire car and have refused them three times.

However where circumstances mean a car can't be driven and you don't have access to another vehicle its not as easy to refuse if the third party won't accept liability.  You then get dragged into the multilayered money making system insurance companies are all now part of.

MarcoM

EssexExile said:

For us LV= sorted it themselves through Enterprise. May be worth asking if they will do this for you, explaining your misgivings about credit hire companies. We found LV= to be very accommodating, although we had a difference of opinion about what "similar size hire car" meant.

From what I understand about my case enterprise are also the actual credit hire company and the hiring company. 

Brie

EssexExile said:

For us LV= sorted it themselves through Enterprise. May be worth asking if they will do this for you, explaining your misgivings about credit hire companies. We found LV= to be very accommodating, although we had a difference of opinion about what "similar size hire car" meant.

We had this with LV as they said that my OH who drives an automatic 4x4 should be able to managed in a manual Fiesta or similar.  He refused and insisted on something more like his car which was then provided via Enterprise.

DullGreyGuy

EssexExile said:

For us LV= sorted it themselves through Enterprise. May be worth asking if they will do this for you, explaining your misgivings about credit hire companies. We found LV= to be very accommodating, although we had a difference of opinion about what "similar size hire car" meant.

Enterprise do credit hire too and so the fact it went to Enterprise doesn't automatically mean it wasn't credit hire.

MarcoM said:

My understanding is the opposite to yours. 
I've read that the agreement is between the driver and the credit hire company and if the third party disputes the claim or its cost, the credit hire can come after me.
I could be wrong. 

You obviously have to read your particular agreement but these days it normally says that as long as you continue to support their recovery efforts that your liability is capped at what the TP is liable for. Ergo you have no liability because the TP insurer pays what the TP is liable for and so discharges your liability. 

They used to be clearer saying it wont cost you anything but then they started losing court cases on the legal technicality that if it costs you nothing you haven't made a loss and so there is no claim from the third party

MarcoM

DullGreyGuy said:

EssexExile said:

For us LV= sorted it themselves through Enterprise. May be worth asking if they will do this for you, explaining your misgivings about credit hire companies. We found LV= to be very accommodating, although we had a difference of opinion about what "similar size hire car" meant.

Enterprise do credit hire too and so the fact it went to Enterprise doesn't automatically mean it wasn't credit hire.

MarcoM said:

My understanding is the opposite to yours. 
I've read that the agreement is between the driver and the credit hire company and if the third party disputes the claim or its cost, the credit hire can come after me.
I could be wrong. 

You obviously have to read your particular agreement but these days it normally says that as long as you continue to support their recovery efforts that your liability is capped at what the TP is liable for. Ergo you have no liability because the TP insurer pays what the TP is liable for and so discharges your liability. 

They used to be clearer saying it wont cost you anything but then they started losing court cases on the legal technicality that if it costs you nothing you haven't made a loss and so there is no claim from the third party

my situation is slightly different as mine was a hit and run accident so the car that hit me was insured but I don't know if the driver was....so if they cannot trace the driver who would they claim the third party costs?