Auxillis Credit Hire

MrPez

My car was damaged by a lorry when parked outside my house. I called the number on my insurance website (Adrian Flux) to report it and it turned out to be Auxillis.

I was strongly encouraged to take out a credit hire agreement with them, even though the 3rd party had admitted liability and provided their insurance details.

I was explicitly told by Auxillis that there would not be a credit agreement in my name, nor would my credit rating be affected. This doesn't sound right to me - is there anyone can confirm?

I hate these companies. Their sole objective is to make money by providing you with a car which is far above 'like for like', and all that happens is that everyone's premiums increase as a result.

Grey_Critic

You are NOT insured with Adrian Flux - They are an insurance broker so yes you are right to be wary. Check your documentation that will tell you who YOU ARE insured with.

MrPez

Yes, I'm with ERS apparently.

To my question, though, with Credit Hire is the agreement in my name and would it impact my credit rating?

tifo

It doesn't affect your credit rating but it's a CREDIT hire agreement, they're giving you a vehicle to drive on CREDIT, i.e. they defer their charges, when the claim is settled they will get their money, because you cannot afford to pay to hire a vehicle yourself. But ultimately you're liable for their charges if the other side insurer don't pay.

As it's a non fault accident you're likely to get your CREDIT hire charges back but  .....

If the other driver admitted their fault then ask their insurer for a courtesy vehicle, that way there's no risk of CREDIT hire.

Or if you have courtesy vehicle cover as an addition to your insurance policy ask them for a vehicle.

DullGreyGuy

MrPez said:

To my question, though, with Credit Hire is the agreement in my name and would it impact my credit rating?

Credit agreement is in your name but it wont be reported the credit reference agencies, the only time that would happen is if you disappeared off into the sunset so they couldnt recover their costs from the third party and so because of the lack of your support you become liable and they have to go to court to get you to pay (and even then only if you didnt pay within a month of the judgement).

MrPez said:

I hate these companies. Their sole objective is to make money by providing you with a car which is far above 'like for like', and all that happens is that everyone's premiums increase as a result.

It will be like for like, not above like for like. If its above like for like, eg because they were out of stock of the appropriate vehicle, then they'd charge it at the appropriate rate for what it should have been not what it was. Their costs are higher than a normal hire company's but they are offering it on credit, they have to work to recover their outlay and notable amounts get written off when it turns out the third party gave false details or were uninsured etc. 

They do unfortunately fulfill a need for those that buy cheap insurance that doesnt meet their requirements (see thread on here earlier today who needs a car but didnt buy the guaranteed courtesy car option and is now without - a poor example possibly as the credit hire company wouldnt take it on as liability isnt clear cut). Their rates are high and yes ultimately insurance premiums increase to cover them. 

tifo

MrPez said:

I hate these companies. Their sole objective is to make money by providing you with a car which is far above 'like for like', and all that happens is that everyone's premiums increase as a result.

A lot of the time they don't get what they charge, hence their higher charges make up for the fact that they have to work (hard sometimes) to get their money back, which is an interest free credit to you, and the other party insurer will offer less than the invoice.

Even the insurers are in on it with their own claim management companies, offering credit hire and charging a success fee at the end.

Yes, there are high costs for claims but a lot of the time the insurers contribute for that.