What is Credit Hire? A Simple Explanation

You have probably never heard the term "credit hire" until you were involved in an accident. That is completely normal. It is an industry term for something that is actually quite straightforward, and it exists to protect people like you.

Credit hire means you get a replacement vehicle after a non-fault accident without paying anything upfront. The hire company provides you with a car on credit, and the cost is recovered from the at-fault driver's insurer as part of your claim. You never see a bill.

It works the same way as other parts of a non-fault claim. If someone else caused the accident, their insurer is responsible for your losses. One of those losses is the cost of a replacement vehicle while yours is off the road. Credit hire is simply the mechanism that makes this happen without you having to pay out of your own pocket first.

Before credit hire, if your car was off the road after an accident, you had two options: accept whatever small courtesy car your insurer offered (usually a tiny runaround regardless of what you normally drive) or pay for your own hire car and try to recover the cost later. Most people could not afford the second option.

Credit hire was developed to level the playing field. It means that someone driving a 10-year-old Corsa gets the same access to a proper replacement vehicle as someone driving a brand new BMW. Your ability to keep driving after an accident should not depend on how much money you have in your bank account.

The principle is like-for-like. If you drive a medium-sized family car, you get a medium-sized family car. If you drive a van, you get a van. The hire vehicle should be comparable to yours in size, type, and broadly in specification. You will not get a downgraded vehicle just because the insurer wants to save money.

Sometimes, yes. Some insurers will try to argue that the hire rates are too high, or that the hire period was longer than necessary, or that you should have accepted their courtesy car instead. This is where having an experienced accident management company on your side matters.

At Scottish Accident, we document everything properly, use reasonable hire rates that comply with industry guidelines, and negotiate firmly with insurers who try to reduce what they owe. We have been doing this for over 35 years, so we know every trick in the book.

In a straightforward non-fault claim where liability is clear, there is no risk to you. The cost is recovered entirely from the other insurer. If liability is disputed or split, the situation is more nuanced, and we will explain your options before arranging anything. We never put you in a position where you could be left with an unexpected bill.

Need a replacement car? Start your claim and we will get you sorted.