Uninsured losses

manimag

In 2020 I was involved in a 100% fault free accident. My insurers told me that as I was not at fault, I could hire a car from Enterprise with whom they had an agreement at no cost to me. I therefore hired a car for the 2 weeks it took to repair my car. My insurers were fully reimbursed for their outlay including my excess and the claim was settled. However, I have now received a letter from solicitors appointed by Enterprise as the Third Party Insurers haven’t paid them the hire car charges. The solicitors want me to agree to them instigating legal proceedings in my name. They say that as the rental agreement was in my name, the proceedings must be too. I don’t understand how a Writ can be issued in my name for recovery of a sum I haven’t paid and I am very reluctant to agree to this. Anyone else come across this?

bluelad1927

The first thing I would do is contact whoever you were insured with at the time and see what they advise. I wouldn't get involved with the solicitors in any way if I didn't have to

SaverRate

What did the terms and conditions say when you hired the car?

Did you hire and pay for the car or did your insurer? If the insurers arranged and paid for it refer it to them. If they didnt (sounds like they didnt from your post) then unfortunately I think you need to comply otherwise are liable for the hire costs? 

facade

you haven't paid-yet.

You are liable for the cost of the hire car, you have to be as otherwise it would simply be a generous gesture on behalf of Enterprise to lend you a car for nothing and they have no chance of re-reimbursement.

It will be what is called a Credit Hire Agreement (pay nothing now, but pay dear plus a massive "credit fee" later). You will have signed something that says you are liable for all the costs- BUT you won't have to pay anything as long as you co-operate with the insurer/Enterprise in recovering the cost from the third party.

This may even include giving statements about your finances at the time to prove that you had to take out credit hire, rather than pay up front and claim it back (which would be considerably cheaper, and is called "mitigating your losses")

99% of these claims end up settled by agreement between insurer and Credit Hire provider without actually going to court.

jlfrs01

manimag said:

 They say that as the rental agreement was in my name, the proceedings must be too. I don’t understand how a Writ can be issued in my name for recovery of a sum I haven’t paid and I am very reluctant to agree to this. Anyone else come across this?

To answer your last question "yes". You effectively signed a contract between yourself and Enterprise. I've obviously not seen the t's and c's but I'd look at them pronto in the event you're ultimately liable for any monies owed and legal fees. I'm not sure how wise it is to agree to these Solicitors to act on your behalf in their claim for Enterprise as that could mean you're liable for their fees. I guess if you don't there's a danger Enterprise may pursue you for the debt instead, which they might do anyway.

mgfvvc

manimag said:

I don’t understand how a Writ can be issued in my name for recovery of a sum I haven’t paid and I am very reluctant to agree to this.

The writ can't be in anyone else's name as nobody else was directly impacted by the accident. Your insurers can't sue in their own name because they were not involved in the accident. Only you have standing to sue, so any legal action is undertaken in your name.
https://en.wikipedia.org/wiki/Standing_(law)

DullGreyGuy

SaverRate said:

Did you hire and pay for the car or did your insurer? If the insurers arranged and paid for it refer it to them. If they didnt (sounds like they didnt from your post) then unfortunately I think you need to comply otherwise are liable for the hire costs? 

Neither, its a credit hire car where the company provide the car on credit with a view to recover the outlay from the third party insurer.

manimag said:

They say that as the rental agreement was in my name, the proceedings must be too. I don’t understand how a Writ can be issued in my name for recovery of a sum I haven’t paid and I am very reluctant to agree to this. Anyone else come across this?

The litigation will always be in your name because you were the harmed party and are the one that has suffered the loss as a consequence. The credit agreement you signed, you'll probably have not read it and assumed it was just a normal hire car handover thing, will say you are liable for the hire charges to the extent that the third party is liable for them. Its that liability that enables you to issue to get the third party/TP insurer to pay up. 

The same agreement will also have said that if you dont support them in their recovery attempts then you personally become liable for 100% of the bill. 

Aretnap

The theory is that as the third party has damaged your car, his insurers are responsible for making good the losses you have suffered as a result - including your repairs, and the cost of alternative transport (ie a hire car) while your repairs are carried out.

At its simplest you would go down to your local car hire place and hire a car while you're was unavailable, pay the bill yourself, then claim the cost back from the third party insurer, by taking them to court if they don't pay up.

However not many people will be able to pay for several weeks car hire in advance, certainly not without some financial hardship, so that's where credit hire firms come in. Essentially Enterprise hire you a car and send you a bill, but the bill only has to be paid when you have reclaimed the cost from the third party insurer. Enterprise will help you with the process of claiming from the insurer, eg by providing solicitors, but the claim does have to be made in your name because your the one who was harmed by the other driver. Enterprise can't take the third party insurer to court themselves because they're not claiming that it was his car that they damaged.

You will not have to pay any legal fees, solicitor fees or hire fees so long as you cooperate with Enterprise in the process of claiming from the third party insurer; you will doubtless have agreed to do this as part of the credit hire agreement that you signed, and using court papers in your name is pay e of that or process.

[Deleted User]

The issue is if the cost of the rental was reasonable, and if you justifiably needed the car you got, or if a cheaper one would have done.

Do you know what it cost to rent that car?