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  • FIRST POST
    • howticklediam
    • By howticklediam 7th Apr 18, 9:56 PM
    • 329Posts
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    howticklediam
    Credit hire - reasonable duration
    • #1
    • 7th Apr 18, 9:56 PM
    Credit hire - reasonable duration 7th Apr 18 at 9:56 PM
    Hi,
    We've been hit by another car, we are non-fault, our car will be written off as it old and quite smashed up at the front (Ford Galaxy).
    We were provided a hire car by Auxillis the next day and now, four days later, the 3rd party's insurer are offering us an equivalent car at a cheaper rate and in a thinly veiled threat saying we should take their offer or they might get a bit sticky when it comes to paying out (although I don't think they have a case as we are taking a smaller car from Auxillis so have already mitigated in that respect).
    The 3rd party say their replacement car will be provided until we have received a cheque for the total loss. I'm not sure when Auxillis want their car back but it is our intention to keep it for as long as it reasonably takes to buy a full size MPV in our price range which is not as easy as it sounds. Good, low-mileage ones are rare.
    My question is: is it reasonable to expect to keep a replacement hire car for a week or two (or even three) following receiving payment for our loss so that we can find an acceptable replacement?
    Many thanks.
    Last edited by howticklediam; 07-04-2018 at 10:40 PM.
Page 1
    • bazzyb
    • By bazzyb 7th Apr 18, 10:11 PM
    • 1,213 Posts
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    bazzyb
    • #2
    • 7th Apr 18, 10:11 PM
    • #2
    • 7th Apr 18, 10:11 PM
    A reasonable hire period wouls be from the date of accident to the point at which the settlement payment is received.

    If you want a car after you have received your settlement payment then this should be arranged at your own expense.
    • weeowens
    • By weeowens 7th Apr 18, 10:28 PM
    • 79,253 Posts
    • 9,729,008 Thanks
    weeowens
    • #3
    • 7th Apr 18, 10:28 PM
    • #3
    • 7th Apr 18, 10:28 PM
    Hi,
    We've been hit by another car, we are non-fault, our car will be written off as it old and quite smashed up at the front (Ford Galaxy).
    We were provided a hire car by Auxillis the next day and now, four days later, the 3rd party's insurer are offering us an equivalent car at a cheaper rate and in a thinly veiled threat saying we should take their offer or they might get a bit sticky when it comes to paying out (although I don't think they have a case as we are taking a smaller car from Auxillis so have already mitigated in that respect).
    The 3rd party say their replacement car will be provided until we have received a cheque for the total loss. I'm not sure when Auxillis want their car back but it is our intention to keep it for as long as it reasonably takes to buy a full size MPV in our price range which is not as easy as it sounds. Good, low-mileage ones are rare.
    My question is: is it reasonable to expect to have a replacement car for a week or two (or even three) following receiving payment for our loss so that we can find an acceptable replacement?


    Many thanks.
    Originally posted by howticklediam
    Size may not be the issue as Auxallis may be charging quite a bit more than the 3rd party insurer can get it sorted for.

    eg: https://www.theguardian.com/money/2016/mar/28/car-insurance-and-credit-hire-agencies
    • howticklediam
    • By howticklediam 7th Apr 18, 10:48 PM
    • 329 Posts
    • 67 Thanks
    howticklediam
    • #4
    • 7th Apr 18, 10:48 PM
    • #4
    • 7th Apr 18, 10:48 PM
    A reasonable hire period wouls be from the date of accident to the point at which the settlement payment is received.

    If you want a car after you have received your settlement payment then this should be arranged at your own expense.
    Originally posted by bazzyb
    But then can the hire charge still be claimed as an uninsured loss because we need the car to get around to look for a replacement?
    • howticklediam
    • By howticklediam 7th Apr 18, 10:49 PM
    • 329 Posts
    • 67 Thanks
    howticklediam
    • #5
    • 7th Apr 18, 10:49 PM
    • #5
    • 7th Apr 18, 10:49 PM
    Size may not be the issue as Auxallis may be charging quite a bit more than the 3rd party insurer can get it sorted for.

    eg: https://www.theguardian.com/money/2016/mar/28/car-insurance-and-credit-hire-agencies
    Originally posted by weeowens
    Point taken, we have mitigated wrt equivalence, but not necessarily cost.
    • weeowens
    • By weeowens 7th Apr 18, 10:50 PM
    • 79,253 Posts
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    weeowens
    • #6
    • 7th Apr 18, 10:50 PM
    • #6
    • 7th Apr 18, 10:50 PM
    But then can the hire charge still be claimed as an uninsured loss because we need the car to get around to look for a replacement?
    Originally posted by howticklediam
    My advice would be to take the 3rd parties car and ask for a bit of extra time to sort a car.
    Keeping a possibly overpriced credit hire car once you have asettlement cheque seems a route to problems.
    • howticklediam
    • By howticklediam 7th Apr 18, 11:03 PM
    • 329 Posts
    • 67 Thanks
    howticklediam
    • #7
    • 7th Apr 18, 11:03 PM
    • #7
    • 7th Apr 18, 11:03 PM
    My advice would be to take the 3rd parties car and ask for a bit of extra time to sort a car.
    Keeping a possibly overpriced credit hire car once you have asettlement cheque seems a route to problems.
    Originally posted by weeowens
    I was thinking that myself, I don't want to end up in court, but if I ask for a bit of extra time and they say no, then they are not being very reasonable (in my view at least) so it would be harder for them to say in court I didn't try to mitigate or reach a reasonable compromise.
    • weeowens
    • By weeowens 7th Apr 18, 11:20 PM
    • 79,253 Posts
    • 9,729,008 Thanks
    weeowens
    • #8
    • 7th Apr 18, 11:20 PM
    • #8
    • 7th Apr 18, 11:20 PM
    I was thinking that myself, I don't want to end up in court, but if I ask for a bit of extra time and they say no, then they are not being very reasonable (in my view at least) so it would be harder for them to say in court I didn't try to mitigate or reach a reasonable compromise.
    Originally posted by howticklediam
    Better that than a massive credit hire bill landing with you.
    • Tarambor
    • By Tarambor 8th Apr 18, 2:14 AM
    • 3,794 Posts
    • 2,817 Thanks
    Tarambor
    • #9
    • 8th Apr 18, 2:14 AM
    • #9
    • 8th Apr 18, 2:14 AM
    My question is: is it reasonable to expect to keep a replacement hire car for a week or two (or even three) following receiving payment for our loss so that we can find an acceptable replacement?
    Many thanks.
    Originally posted by howticklediam
    In law you have a responsibility to mitigate your losses. You should be already looking, it would be expected that you take the insurer's offer of a hire car over Auxalis who charge overinflated prices.
    • dacouch
    • By dacouch 8th Apr 18, 6:47 AM
    • 20,607 Posts
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    dacouch
    You might want to Google Auxillis and their previous name Albany assistance before you turn the other Insurers offer
    • bazzyb
    • By bazzyb 8th Apr 18, 8:32 AM
    • 1,213 Posts
    • 3,286 Thanks
    bazzyb
    But then can the hire charge still be claimed as an uninsured loss because we need the car to get around to look for a replacement?
    Originally posted by howticklediam
    No, hence "at your own expense".

    It's hardly the third party's fault that you wait for the settlement cheque before you even start looking for a car. If you think the car will likely be written off then why haven't you already started looking for one?
    • Nobbie1967
    • By Nobbie1967 8th Apr 18, 9:00 AM
    • 809 Posts
    • 883 Thanks
    Nobbie1967
    No, hence "at your own expense".

    It's hardly the third party's fault that you wait for the settlement cheque before you even start looking for a car. If you think the car will likely be written off then why haven't you already started looking for one?
    Originally posted by bazzyb
    Being reasonable about this is to start looking for a replacement as soon as you receive notification that the car is written off. No reason you can't agree a deal with a dealer and put a holding deposit down on the understanding that you will take the car when the insurer pays out.

    Holding onto a credit hire car for two or three weeks after settlement is not going to happen. The insurer is only obliged to settle the cost of the loss, I'm not aware that they have any obligation to allow you time to find an exact replacement as this would obviously be impossible in many cases with older cars.

    Maybe negotiate extending their offer of a car for a few days past settlement in return for returning the credit hire vehicle now.
    • dacouch
    • By dacouch 8th Apr 18, 9:29 AM
    • 20,607 Posts
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    dacouch
    The credit hire vehicle will be at a massively inflated price over normal hire costs. It will be circa £100 a day to hire
    • hollie.weimeraner
    • By hollie.weimeraner 8th Apr 18, 1:52 PM
    • 1,692 Posts
    • 1,208 Thanks
    hollie.weimeraner
    I used to be an accident investigator and quite often took statements on behalf of insurance companies. Credit hire can be a nightmare as they are generally over inflated hire charges.
    As pointed out above you have a duty to mitigate your losses therefore you need to accept the offer of the insurers car (if it is suitable for your purposes eg. if you are a driving instructor and they offer a vehicle without dual controls then this isn't suitable).
    If you carry on with the credit hire car you may find yourself liable for the car hire charges.
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    • howticklediam
    • By howticklediam 8th Apr 18, 9:34 PM
    • 329 Posts
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    howticklediam
    Thanks for all the replies. There is an overwhelming consensus to take the cheaper option which is what I suspected we should do and I will ask about extending the hire period.

    We have legal cover and a lawyer for uninsured losses so we can ask them for advice tomorrow. Seven years ago we had a helphire car for about six weeks in similar circumstances and it ended up in court, but that was just concerning the rate, the duration was never questioned, so I'm still a bit unsure that we can't claim an uninsured loss for a car until we find a suitable replacement otherwise we have not been fully reinstated.
    • howticklediam
    • By howticklediam 9th Apr 18, 12:13 PM
    • 329 Posts
    • 67 Thanks
    howticklediam
    In case anyone is interested. The 3rd party's insurer have agreed to let us have their hire car beyond the settlement date if we haven't found a replacement by then. If they hadn't done, we would have hired one anyway at our own expense and claimed it back as an uninsured loss.
  • Auxillis
    Hello,

    Unfortunately, our service only permits for the hire vehicle to be used for an additional 7 days after the settlement cheque has been received and we understand that this duration did not meet your needs. If you would like to speak with a member of our team directly, please email onlineteam@auxillis.com with your reference number and we will arrange for you to be contacted.

    We would also like to take this opportunity to clarify some additional points regarding our service.
    The hire charges mentioned in this forum do not necessarily reflect the charges billed or indeed recovered from a third party insurer, as we have in place protocol agreements with over 80% of UK motor insurers to settle hire and repair charges at pre-agreed rates.

    Also, all of our non-fault customers are provided with a free Credit Protection policy which ensures that the cost of any hire vehicle, vehicle repairs or legal costs are covered, indemnifying the customer. As you would expect, where a customer has been untruthful about the accident or does not assist in the recovery, this cover is suspended.

    Kind Regards,

    Auxillis Online Team
    “Official Company Representative
    I am the official company representative of Auxillis. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
    • howticklediam
    • By howticklediam 10th Apr 18, 5:29 PM
    • 329 Posts
    • 67 Thanks
    howticklediam
    Thanks Auxillis. In the end we decided to keep the car you supplied because the 3rd party's offer was only for 5 days after settlement and our legal advisor assured us that there would be no problems getting reimbursed.

    If we need longer we'll hire privately go through our legal team to recover costs.
    • dacouch
    • By dacouch 10th Apr 18, 9:57 PM
    • 20,607 Posts
    • 12,767 Thanks
    dacouch
    Thanks Auxillis. In the end we decided to keep the car you supplied because the 3rd party's offer was only for 5 days after settlement and our legal advisor assured us that there would be no problems getting reimbursed.

    If we need longer we'll hire privately go through our legal team to recover costs.
    Originally posted by howticklediam
    You will not recover costs past the seven days.
    • howticklediam
    • By howticklediam 11th Apr 18, 12:43 PM
    • 329 Posts
    • 67 Thanks
    howticklediam
    Well I have before. It went to court and the other side only questioned the rate, not the duration, which was about six weeks in total. I'm fairly sure we got paid at after about three weeks.

    But it was a long time ago and I concede that things may have changed since then which is why I asked the question in the first place.

    Does anyone know any case law that has settled the seven day maximum post-settlement.
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