A courtesy car is a free vehicle provided by your own insurer or garage during repairs after an accident. A credit hire vehicle, on the other hand, is arranged on a credit basis when you’re not at fault—costs are claimed from the at-fault driver’s insurer. Credit hire vehicles are usually like-for-like replacements and more suited for serious non-fault accidents.
Understanding the Basics
After a car accident, being left without a vehicle can cause major disruption. Whether you need to commute, care for your family, or run a business, having a temporary replacement vehicle is often essential.
You may hear the terms courtesy car and credit hire vehicle—but what do they really mean? And how do they affect your claim?
Let’s break it down in simple terms so you understand what each option involves and what’s best for your situation.
What Is a Courtesy Car?
A courtesy car is a free vehicle offered by your garage or insurer while your own car is being repaired. It’s:
- Provided under your own insurance policy
- Usually a small or basic model
- Available only if repairs are being done through your insurer’s approved repairer
However, courtesy cars are not guaranteed and often depend on:
- Availability
- The terms in your policy
- Whether your car is repairable
Most importantly, they’re not based on your usual car type. If you normally drive a premium or large car, a courtesy car may not meet your needs.
What Is a Credit Hire Vehicle?
A credit hire vehicle is a replacement car provided on a credit basis if the accident wasn’t your fault. It’s arranged by a credit hire company and:
- Meant to be a like-for-like replacement (same class or type as your own car)
- Provided immediately after the accident
- Paid for by the at-fault party’s insurer
- Offered under a credit agreement, with no upfront cost to you
This is particularly useful if:
- The at-fault driver’s insurer is slow to act
- You don’t have courtesy car cover
- You need a specific vehicle type (e.g. taxi, SUV, automatic)
If you’re asking, “What is a credit hire vehicle?“, it’s a short-term solution that ensures you’re not left at a disadvantage due to someone else’s mistake.
Key Differences: Courtesy Car vs Credit Hire Vehicle
| Feature | Courtesy Car | Credit Hire Vehicle |
|---|---|---|
| Who provides it? | Your insurer or garage | Credit hire company |
| Who pays for it? | Included in your policy (if covered) | At-fault driver’s insurer |
| Vehicle type | Basic or economy model | Like-for-like replacement |
| Eligibility | Usually for repairable vehicles only | For non-fault drivers needing a car |
| Availability | Not guaranteed | Guaranteed if claim is valid |
| Time limit | May be limited to repair duration | Covers full repair or replacement period |
How Much Compensation Can You Claim?
Although a vehicle replacement isn’t a “compensation” amount in the traditional sense, you may claim for:
- Hire costs (covered by the at-fault insurer)
- Loss of use if no vehicle was provided
- Out-of-pocket transport expenses (e.g. taxis or public transport)
Example Estimates:
| Scenario | Estimated Cost Covered by Claim |
|---|---|
| Economy car for 2 weeks (credit hire) | £600 – £1,200 |
| SUV hire for 3 weeks | £1,800 – £3,000+ |
| Taxi driver vehicle replacement | £2,000 – £4,000+ |
If you’ve also suffered injury, you may be eligible to claim personal injury compensation, which can range from:
- Minor whiplash: £1,000 – £4,000
- Moderate injuries: £6,000 – £20,000+
National Claims ensures all aspects of your losses are included in your claim.
When Should You Choose Credit Hire Over a Courtesy Car?
Opt for a credit hire vehicle when:
- You were not at fault
- Your car is undriveable or written off
- You need a specific type of vehicle
- There is no courtesy car available from your insurer
- You’re a self-employed driver, like a courier or taxi driver, and need a fast replacement to keep working
Credit hire ensures you’re not left without transport while your claim is ongoing.
Important Things to Keep in Mind
- Always be honest about your need for a hire vehicle
- The vehicle must be reasonable and proportionate
- Cooperate with the credit hire company and solicitor
- Retain receipts or communication for claim purposes
What If the At-Fault Driver Denies Liability?
If there’s a dispute over liability, the credit hire company may:
- Conduct an investigation
- Proceed with a claim through the courts
Solicitors connected via National Claims can step in and support your case while protecting you from upfront costs.
People Also Ask
Q1. ✅ What is a credit hire vehicle in the UK?
A credit hire vehicle is a temporary replacement car provided to non-fault accident victims. It’s paid for by the at-fault party’s insurer, not the injured driver.
Q2. ✅ Can I get a courtesy car if my car is written off?
Usually, no. Courtesy cars are often only available during repairs. If your car is a write-off, a credit hire vehicle is typically the better option.
Q3. ✅ Is there a cost to using a credit hire vehicle?
No upfront cost. The credit hire company recovers the hire charges from the at-fault insurer. However, you must cooperate with the claim process.
Q4. ✅ Are credit hire vehicles legal in the UK?
Yes, credit hire is a legally recognised solution. However, claims must be reasonable, and hire periods must not be excessive.
Q5. ✅ How can National Claims help with credit hire claims?
National Claims connects you with experienced solicitors and credit hire companies who can arrange a vehicle fast and manage the legal process on your behalf.
Final Thoughts
Understanding the difference between a courtesy car and a credit hire vehicle can make a big difference in your recovery after a road traffic accident. Courtesy cars are limited in availability and usually not like-for-like. On the other hand, credit hire vehicles offer a practical, no-cost solution for non-fault drivers who need mobility fast.
Whether you’re dealing with repairs or a written-off car, knowing your rights helps you stay on the road without paying out of pocket.
Need Help? National Claims Can Get You Back on the Road
Have you been in a non-fault accident and need a replacement car? National Claims can:
- Arrange a like-for-like credit hire vehicle
- Connect you with expert road traffic accident solicitors
- Support you on a No Win No Fee basis
✅ Fast service
✅ No upfront fees
✅ Full claims support
Contact National Claims today, and we will put you in touch with an expert solicitor who can guide you through the claims process.📞 Call us now free 0800 029 3849 or 📩 Submit an online enquiry to speak to our team. Your safety and well-being matter, and we’re here to help.
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