Credit hire is an expression often used by the accident management industry.
In the event of a road traffic accident, one of the primary concerns for individuals is how to maintain mobility while their vehicle is being repaired or replaced. This is where credit hire companies step in, offering a unique solution that ensures accident victims are not left stranded.
What is Credit Hire?
Credit hire is a service that provides a replacement vehicle to someone who has been involved in a road traffic accident that wasn’t their fault. The unique aspect of this service is that the costs of the hire are recovered directly from the at-fault party’s insurance company, rather than the individual who was not at fault.
Getting you mobile again
Imagine being involved in an accident where your car is severely damaged or written off. Without a replacement vehicle, you could face significant challenges, especially if you rely on your car for daily tasks such as commuting, school runs or shopping. Getting a courtesy car in this way ensures that you can continue with your daily routine without any significant interruptions.
How Does It Work?
Once it’s determined that the accident wasn’t your fault, an accident management company provides you with a replacement vehicle. The costs of this hire are then claimed back from the at-fault driver’s insurance company. This might sound straightforward, but the process can be intricate. It requires seamless coordination between accident management companies, insurers, and sometimes even legal professionals.
While you use the replacement vehicle, the accident management company tracks the costs. Once your car is repaired or once you receive compensation for a write-off, the replacement vehicle is returned, and the total costs are finalised. These costs are then forwarded to the insurance company of the party at fault for payment.
Benefits of Credit Hire
- Seamless Mobility: There’s no waiting period. You get a temporary like-for-like replacement vehicle almost immediately after your accident, ensuring minimal disruption to your daily life.
- No Upfront Costs: Since the bill is sent to the at-fault party’s insurer, there’s no immediate financial burden on you and you get driving as soon as possible after an accident.
- Tailored Solutions: Many credit hire companies offer vehicles similar to the one damaged in the accident, meaning you won’t have to adjust to a completely different driving experience.
Summary
Accidents are stressful, both emotionally and logistically. Credit hire eases some of this stress by ensuring that your life doesn’t come to a standstill because of a damaged vehicle. By understanding how credit hire works, you can make informed decisions and ensure that, even in unfortunate circumstances, you remain mobile and empowered.