When your car is off the road due to an accident, one of the pressing questions is how to get around. In the UK, two main options often come up: credit hire and courtesy cars. Understanding the differences, benefits, and drawbacks of each can help you make the best choice for your circumstances. This article explores credit hire vehicles versus courtesy cars, providing clear insights to help you decide which is better for you.
What is a Credit Hire Car?
A credit hire car is a replacement vehicle provided by a specialist credit hire company following a non-fault accident. Importantly, the hire company claims the cost of the rental from the at-fault party’s insurer, so you, as the claimant, should not be out-of-pocket.
Credit hire cars are often high-quality vehicles, closely matching your own in terms of size and specification. They are supplied while your vehicle is being repaired or while you are awaiting a settlement or a new vehicle.
Advantages of Credit Hire:
- No upfront costs: The credit hire company recovers costs from the third party insurer.
- Vehicle choice: Typically offers a car similar to your own in size and features.
- Convenience: Arranged quickly and directly related to your claim.
- Extended hire periods: You can usually keep the vehicle until your vehicle is repaired or a settlement is reached.
Considerations with Credit Hire:
- Not available for fault-based claims or insurance policies with limited coverage.
- Sometimes there may be disputes with the at-fault insurer which could delay vehicle provision.
- Charges may include administration fees depending on the company.
What is a Courtesy Car?
A courtesy car is provided by your own insurer or the garage conducting repairs on your vehicle. It is usually offered as a goodwill gesture to keep you mobile while your car is being fixed.
Courtesy cars vary significantly in terms of availability, quality, and vehicle type provided. Some policies may include courtesy car cover as part of the insurance, while in others, it might be an extra.
Advantages of Courtesy Cars:
- Usually included in comprehensive or premium insurance policies.
- No involvement with third-party insurers – simple process through your own insurer or repair shop.
- Often immediate availability if pre-arranged by your insurer or repairer.
Considerations with Courtesy Cars:
- The vehicle provided may be of a smaller size or lower specification than your own.
- Availability can be limited depending on your insurer or repairer’s fleet.
- Usually restricted to the repair period of your vehicle and not the length of the entire claim.
- Additional costs may apply if courtesy car cover is not included in your insurance policy.
Credit Hire vs Courtesy Car: Which is Better?
| Aspect | Credit Hire | Courtesy Car |
|---|---|---|
| Cost to you | Generally no upfront cost | Covered if included in your policy; Might incur costs otherwise |
| Vehicle match | Usually matches your vehicle | Sometimes smaller or less similar to your car |
| Availability | Quickly arranged through credit hire company | Depends on insurer or repairer availability |
| Claim type suitability | Non-fault claims only | Available for fault and non-fault claims |
| Duration of use | Until repair or settlement completed | Typically only for the repair duration |
| Potential disputes | Possible with third-party insurer | Minimal, as provided by own insurer |
When to Choose Credit Hire
If you were not at fault in the accident and want a replacement vehicle closely resembling your own without incurring costs, credit hire is typically the better option. It allows you to maintain your standard of mobility and calendar control while your claim is handled.
When to Opt for a Courtesy Car
If your insurance policy includes courtesy car cover or arranging credit hire is complicated, a courtesy car can provide a straightforward solution. It is also suitable if your vehicle repair is expected to be short or if you prefer dealing with your insurer rather than third parties.
Final Thoughts
The choice between credit hire and courtesy cars depends largely on your claim status, insurance coverage, and personal preferences. Credit hire offers more flexibility and a higher likelihood of a vehicle similar to your own, especially in non-fault claims. Courtesy cars provide an easier, often quicker option if included in your policy or repair agreement.
Before making a decision, review your insurance policy carefully, and discuss options with your insurer or claims advisor. Both options serve to keep you mobile during a stressful time; choosing the right one ensures convenience, financial protection, and peace of mind.