no fault claim - How do I get a courtesy car?

user1168934

First time in this situation so apologies if this is a stupid question.
I have a fully comprehensive policy with Bank of Scotland car insurance.
Someone hit my car from the side, as a result my car is not usable. The other person admitted fault on the spot and gave me their insurance details. I later started a no-fault claim by contacting my insurance company (Bank of Scotland car insurance). They took all the details and forwarded me to Enterprise saying they will be my file handler and will provide me a car.
When talking to Enterprise, the guy offered a car to me but making it clear that "it is not a courtesy car and that I will be getting into a credit agreement with them and if the third party does not accept guilt then I will be liable to pay them for the rental car". I asked a few questions saying I am not comfortable getting into a credit agreement and he said that instead of giving me a car now he will go and get acceptance of guilt from the third party. He said it should be quick - max 48 hours. Today, less than 24 hrs later, Enterprise have called me and said that they tried to get in touch with the third party insurer who did not pick up the phone so Enterprise are not doing anything else and that I should go and contact my underwriter.
I will chase with the underwriter on monday.

I was hoping it would be resolved quickly but it seems like this is going to drag on. The problem is that I need a usable car. I know my policy listed a courtesy car when I bought it. Why have I not been offered a courtesy car? Is that something I need to ask for explicitly? Who do I ask (broker or underwriter)?
Since it is a no-fault claim, should my insurer not give me a car and then claim from the third party insurer?
How do these things work and basically what do I do next?

Archie_Duke

Yes, speak to BoS, not Enterprise, and ask specifically for the non-credit hire courtesy car that you are entitled to under section z Paragraph n of your vehicle policy.

My partner’s had issues over this after a non-fault claim. Still rumbling on over the hire car after almost a year.  

facade

Yes, you want the courtesy car that your policy entitles you to, although I bet the micro print on page 2,587 says that it is provided by the repair garage, subject to availability.

Enterprise want to make £££££ by putting you in an expensive credit hire car, and the third party will likely argue that it was far too expensive and threaten you with court- but Enterprise will "do a deal" with the third party and you won't have to go. (They may even argue that it was unnecessary as you had courtesy car as part of your own insurance- but the unavailability of a "courtesy car" made it so you had to get credit hire...)

The reason you have to sign to say that you will pay for the credit hire car is because if you aren't ultimately liable for the costs, Enterprise cannot add it to your claim.

chrisw

Enterprise want to be 99.99% certain they'll get their money back so will want to speak to the third party insurer to establish the likelihood of them accepting liability. I had a hire car with them through this route and it all worked out fine.

user1168934

Is asking for a courtesy car (to my insurer BOS) going to affect my no claims discount?

I am pretty certain it should not since NCD will depend on whether claim is no-fault. Just trying to confirm.

prettyandfluffy

user1168934 said:

Is asking for a courtesy car (to my insurer BOS) going to affect my no claims discount?

I am pretty certain it should not since NCD will depend on whether claim is no-fault. Just trying to confirm.

No, having a courtesy car won't affect your no claims discount.

DullGreyGuy

chrisw said:

Enterprise want to be 99.99% certain they'll get their money back so will want to speak to the third party insurer to establish the likelihood of them accepting liability. I had a hire car with them through this route and it all worked out fine.

Not at all @chrisw, hence they had already offered the credit hire to the OP without speaking to the TPI. It's only the OP not wanting a credit hire car that is preventing them being in hire now.

The reason that credit hire rates are often 4x or more the commercial hire rates is because the company is taking a risk and doesn't always get its money back but this is seen as a "service" to the innocent party as otherwise they could be waiting months for indemnity to be confirmed and liability resolved. 

user1168934 said:

Is asking for a courtesy car (to my insurer BOS) going to affect my no claims discount?

I am pretty certain it should not since NCD will depend on whether claim is no-fault. Just trying to confirm.

Unfortunately  @prettyandfluffy's answer is wrong...

A courtesy car is a vehicle provided to you by the garage themselves whilst your car is in for repair. So to get the courtesy car you must claim for the vehicle damage (and it must be repairable, ie no beyond economic repair).

In most cases an open claim will count as "fault" until such time that the insurer is reimbursed by the third party insurer. There can be cases that seem on the surface to be a clear cut case but subsequently the claim goes sideways and as a consequence the claim ends up remaining as fault. This can be cause the TP was on cloned plates so you dont know who the real TP is, they are uninsured, they allege you were at fault and produce a witness that confirms their accusations etc.

user1168934

I got back to BOS insurance and had the worst experience. They are not helpful at all and just covering their behind with small text. They are saying that the courtesy car is "subject to availability and eligibility" and that it's not available. They further said that I should have bought their additional product for "guaranteed replacement vehicle" for which they obviously charge extra. It just sounds like such a scam in broad daylight.

A friend (who is in the US) told me that US have "Better Business Bureau" or some "Consumer Protection Agency" where you can report such things. Once reported the companies do take it seriously. Is there an equivalent in the UK where I can raise this complaint in the UK?

I have little kids and I need a working car everyday. My whole life is disrupted because of one idiot driver - I really need a replacement car. Please guide me how I can get one.

Aretnap

user1168934 said:

I got back to BOS insurance and had the worst experience. They are not helpful at all and just covering their behind with small text. They are saying that the courtesy car is "subject to availability and eligibility" and that it's not available. They further said that I should have bought their additional product for "guaranteed replacement vehicle" for which they obviously charge extra. It just sounds like such a scam in broad daylight.

It's fairly standard, and not a scam. Most basic insurance policies do not provide a courtesy car per se, rather the garage that does your repairs may provide one as part of their normal customer service, if they have one available. All the insurer promises to do is use a garage which normally provides a courtesy car to customers.

Many insurers, including BOS, offer an upgrade where they will guarantee to find you a replacement car for a set amount of time, from a car hire company if necessary, if the garage doesn't have one or if your car not actually with a garage for repair at all (eg because it has been stolen or written off). Obviously as this is a bigger cost to the insurance company it is more expensive, but it's something you should consider for next time if having a replacement car is essential for you.

user1168934 said:

A friend (who is in the US) told me that US have "Better Business Bureau" or some "Consumer Protection Agency" where you can report such things. Once reported the companies do take it seriously. Is there an equivalent in the UK where I can raise this complaint in the UK?

If you think the policy was sold in a misleading way your first port of call is to use the insurer's complaints process, and if you're not happy with their response you can complain to the FInancial Ombudsman Service. However that's a slow process and won't get you a car in the short term.

user1168934 said:

I have little kids and I need a working car everyday. My whole life is disrupted because of one idiot driver - I really need a replacement car. Please guide me how I can get one.

Your best option at this point is probably to accept the credit hire car that Enterprise have already offered you. Your liability for the costs is largely a piece of legal fiction designed to make it possible for the credit hire company to recover the cost from the third party insurer on your behalf. In practice Enterprise take on the risk that they won't recover the costs themselves, and would only pursue you for them if you had not been honest with them about the circumstances of the accident, or if you didn't assist them with chasing the third party. There will generally be a line in the contract saying that your liability is restricted to the third party's liability (ie you only have to pay whatever can be recovered from the third party insurer).

Your alternative is to contact the third party insurer directly and ask them to arrange a hire car for you. However if they don't pick up the phone, or if they don't cooperate, the only way you can force them to pay for one is to hire a car with your own money, then take them to court for the costs. Using a credit hire company amounts to doing the same thing - but passing on the risk and (most of) the work or recovering the costs to the credit hire company.

user1168934

Aretnap said:

Your best option at this point is probably to accept the credit hire car that Enterprise have already offered you.

.....
.....
 Using a credit hire company amounts to doing the same thing - but passing on the risk and (most of) the work or recovering the costs to the credit hire company.

Thank you for a detailed reply.
Do I still have the option to go back to Enterprise and take the credit agreement? Asking because Enterprise said they are not pursuing it anymore and have passed it on to the underwriters.

Also, can I ask the underwriters to include the extra costs I am incurring (for instance for using public transport, cab, or private car rental) in my claim and recover them from the third party insurer?
If not then how do I claim those costs back?
FYI - I do not have the legal cover either. It was optional and I did not add it to the policy.

Bigphil1474

OP, I would try contacting the third party insurers. If that fails, contact your insurers. Sounds like Enterprise don't want the hassle. Bear in mind you do have a contract with your insurers, so if it goes pear shaped, you have some recourse. 
Do you have legal cover with your home insurance, or if you have trade union membership you usually get legal cover with them. Check policy wording and they may be able to help.
Many years ago I had a car in for lengthy repairs, I arranged my own car hire through a mate. Was far cheaper than commercial rates and insurers picked up the bill.