CHCredit HireInformation & referral · not a law firm
Home / Vs your own insurance

Credit Hire Vs Your Own Insurance

In short

Credit hire and claiming through your own insurance are different routes after a non-fault accident. Your insurer may arrange repairs and a courtesy car under your policy. Credit hire may provide a more suitable replacement on credit, with the cost pursued from the at-fault insurer.

The vehicle question

Compare capability, not just the words “courtesy car”.

A small policy courtesy car may be enough for one driver and unsuitable for a household carrying passengers, child seats, mobility equipment or work gear. Ask each route what class is actually offered, for how long, under whose agreement and with what excess.

Credit hire can carry a different cost risk, so a more suitable class is not automatically the better overall decision.

Check the risk before signing

§ 01How do the two routes compare?

Neither route is automatically better. The right choice depends on speed, vehicle suitability, cost risk, your excess, no-claims treatment, repair control and how clear the paperwork is.

Courtesy car through your insurer vs a credit hire replacement
Your own insurer / courtesy carCredit hire replacement
Where it sitsUnder your own policy termsOutside your policy, on a credit agreement
Vehicle providedOften a basic courtesy car, if includedMay be closer to like-for-like where justified
Upfront costUsually none, subject to excessUsually none upfront (arranged on credit)
Who ultimately paysYour insurer, per your coverPursued from the at-fault insurer
Excess / no-claimsMay be affected, depending on coverNot a policy claim, so different considerations
Main riskVehicle may not suit your needsRate, duration or need can be challenged

§ 02Which route should I consider first?

There is no single answer. A courtesy car through your insurer can be simple where a basic car meets your needs. Credit hire may suit where you genuinely need a like-for-like or specialist vehicle, provided the terms are clear.

You can contact your own insurer and the at-fault insurer directly, free of charge, before deciding, and you can complain directly if a route you were offered was unsuitable or poorly explained.

Reference

Common questions

Q1

Will my insurer always provide a like-for-like vehicle?

Not always. It depends on your policy and what is available.

Q2

Is credit hire always better?

No. It depends on fault, need, vehicle type, risk and the terms offered.

Q3

Can I change route later?

Sometimes, but switching can be complicated once agreements, repairs or hire periods have started.

Prepare for the partner eligibility route

Organise the accident, driver and vehicle information a participating provider would usually need. Enquiries are not open, and the checklist does not assess or guarantee anything.