If you’ve been in a non-fault accident, you may have heard the term “credit hire”. It’s the mechanism that lets you get a replacement vehicle without paying a penny upfront. Here’s how it works in plain English.
What is credit hire?
Credit hire is when a replacement vehicle is provided to you on credit after a non-fault accident. Instead of paying for the hire yourself, the cost is recovered directly from the at-fault driver’s insurer once liability is confirmed.
Why not just use my own insurer?
If you claim a courtesy car through your own policy, you may have to pay your excess, and you risk losing your no-claims discount. With credit hire through an accident management company, none of that happens — because you’re not claiming on your own insurance at all.
How the process works
- You report the accident to an accident management company.
- They assess liability — credit hire applies where you’re not at fault.
- A like-for-like replacement is delivered to you, usually within 24–48 hours.
- You carry on as normal while your own vehicle is repaired.
- The costs are recovered from the at-fault insurer — you pay nothing.
What does “like-for-like” mean?
You’re entitled to a vehicle of a similar size, class and specification to your own. If you drive a prestige car, a van or a motorbike, you get an equivalent — not a downgrade.
Is credit hire really free?
For a genuine non-fault accident, yes — you pay nothing. The cost is a loss caused by the at-fault driver, so it’s recovered from their insurer as part of your claim.
Been in a non-fault accident?
Our team is available 24/7. We handle everything — recovery, a replacement vehicle, repairs and your claim — at no cost to you.
Please note: this article is general information about how non-fault accident claims usually work. It is not legal advice and does not create a client relationship. Every claim turns on its own facts — if you need advice on your situation, get in touch and we’ll talk it through with you.