27/12/2011
Being involved in a car accident is, without doubt, a stressful and often frightening experience. The immediate aftermath can be a whirlwind of emotions, from shock and frustration to concern for your vehicle's condition. But what happens when the accident isn't your fault? In the United Kingdom, navigating the repair process when you're the innocent party can seem daunting, with various routes available to get your vehicle back on the road without incurring unnecessary costs. Understanding your options is key to a smooth and fair resolution, ensuring you're not left out of pocket or without transport.
This comprehensive guide delves into the specific avenues available for vehicle repair after a non-fault accident in the UK. We'll explore the roles of credit hire companies and your own motor insurance, highlight the critical considerations for each, and arm you with the knowledge to make the best decision for your situation. Our aim is to demystify the process, helping you understand your rights and the practical steps you can take to minimise disruption and financial burden.
Understanding Your Initial Options After a Non-Fault Accident
When another driver is clearly at fault for an accident, you generally have two primary pathways to arrange for your vehicle's repair and, if needed, a replacement car. Each option comes with its own set of advantages and considerations, and understanding these can significantly impact your experience and out-of-pocket expenses.
Option 1: Utilising a Credit Hire Company (CHC)
One of the most popular routes for non-fault accidents is to engage the services of a Credit Hire Company. These specialist firms are designed to alleviate the immediate financial burden on you by covering the costs of a replacement vehicle (often provided on a 'credit' basis) and arranging your vehicle's repairs. Crucially, they then seek to recover all these expenses directly from the at-fault driver's insurance company. This means you typically don't have to pay your policy excess upfront, which is a significant relief for many.
Why Choose a Credit Hire Company?
- No Excess Payment: This is arguably the biggest draw. When the accident isn't your fault, you shouldn't have to pay your insurance excess. A CHC ensures you avoid this immediate outlay.
- Seamless Replacement Vehicle: CHCs excel at providing a like-for-like replacement vehicle, often delivered directly to you, ensuring minimal disruption to your daily life while your car is being repaired. The cost of this hire car is covered by the CHC initially.
- Liaison and Organisation: Many CHCs will take on the burden of liaising with your own insurance company (for notification purposes) and the third-party insurer. They can also organise the repair process, directing your vehicle to approved garages and managing the logistics.
- Potential for Additional Services: Some credit hire companies offer broader assistance, including help with claiming compensation for other losses incurred due due to the accident, such as personal injury, loss of earnings, or damage to personal belongings. This can provide a more holistic support package.
Important Considerations When Using a Credit Hire Company
While CHCs offer considerable benefits, it's absolutely vital to proceed with caution and a clear understanding of the agreement you're entering into. The phrase 'check the small print' cannot be stressed enough when dealing with credit hire agreements.
- Understanding the Daily Hire Rate: The agreement should clearly detail the daily cost of the hire car. This is important because the CHC will claim this back from the third-party insurer, and if the rate is deemed excessive, it could lead to disputes.
- Your Responsibilities and Cooperation: Credit hire agreements often contain clauses stating what you will owe if you fail to cooperate with the company or provide misleading information. Non-cooperation could include failing to provide necessary documents, not attending court if required, or delaying the repair process. Be aware of these terms to avoid unexpected charges.
- Indemnity and Guarantees: Some CHCs may request a small upfront payment or an 'insurance policy' to guarantee that you won't be liable for the hire charges if, for any reason, the at-fault driver's insurance company refuses to pay. This is a form of indemnity protection and is worth considering, though not all CHCs require it.
- Potential for Court Appearance: You will sign an agreement acknowledging that the costs are in your name. In rare instances, if the at-fault insurer disputes the hire charges (e.g., claiming the daily rate was too high or the hire period was too long), they may take the credit hire company to court. In such a scenario, you, as the hirer, may be asked to give evidence. This would involve proving you genuinely needed the hire car and could not afford to pay for it yourself without the CHC's assistance. If this situation arises, seeking independent legal advice immediately is crucial.
- Notification to Your Insurer: Even if you use a CHC and don't claim through your own motor insurance, you are generally still obligated to inform your insurer about the accident for their records. The CHC may offer to do this on your behalf, or they might instruct you to do so. Ensure this step is completed to avoid potential policy issues later.
Option 2: Claiming Through the Other Driver's Insurance Company
If the other driver has immediately admitted fault, you might consider approaching their insurance company directly to arrange for your car's repairs and a courtesy vehicle. This can sometimes be a quicker process, as it cuts out the intermediary of a CHC.
When This Option is Viable:
This route is most straightforward when the other driver has explicitly admitted responsibility at the scene or shortly after. If there's any dispute over fault, their insurer is unlikely to accept liability immediately, which would then necessitate you claiming through your own insurance or a CHC.
Challenges with This Option:
More often than not, the other insurer will not accept immediate blame, particularly if their driver hasn't provided a statement or if there are conflicting accounts. In such cases, they will advise you to claim through your own insurer, allowing them time to investigate. This can delay repairs and leave you without a vehicle for longer.
Claiming Through Your Own Motor Insurance
If the other driver's insurer isn't accepting immediate blame, or if you simply prefer to use your own policy, you can make a claim through your own comprehensive motor insurance. While this gets the ball rolling quickly, it typically involves paying your policy excess upfront.
Paying Excess for a Non-Fault Accident
When you make a claim on your own policy for an accident that wasn't your fault, you will almost certainly have to pay your policy excess to your insurer. This is because your insurer pays for the repairs immediately and then seeks to recover all costs, including your excess, from the at-fault driver's insurance company. Once your insurer successfully recovers these costs, they will then reimburse you your excess.
Reclaiming Your Excess:
- Your Insurer's Role: If your insurance company handles the claim, they are generally responsible for reclaiming your excess from the at-fault party's insurer on your behalf. This process can take time, sometimes weeks or even months, depending on the complexity of the claim and the responsiveness of the other insurer.
- Legal Expenses Cover: If you have 'legal expenses cover' as part of your motor insurance policy (or as a separate policy), this can be incredibly beneficial. This cover often provides legal assistance to help you recover uninsured losses, including your excess, personal injury compensation, or loss of earnings, directly from the at-fault party. It means you have dedicated support to pursue these costs if your main insurer doesn't cover them.
- Taking Legal Action: In rare cases, if you have trouble getting your excess back, or if your insurer isn't proactive in reclaiming it, you might consider taking the at-fault driver or their insurance company to court. However, this should be a last resort and pursued only after seeking legal advice.
- Credit Hire Companies and Excess: As mentioned, a credit hire company can also make a claim on your behalf, often including the recovery of your excess, if you choose to use their services instead of claiming directly through your own insurer.
Comparative Table: Credit Hire vs. Own Insurance
To help you weigh your options, here's a comparative look at using a Credit Hire Company versus claiming through your own motor insurance for a non-fault accident:
| Feature | Credit Hire Company (CHC) | Your Own Motor Insurance |
|---|---|---|
| Upfront Excess Payment | Usually None (CHC claims directly from at-fault insurer) | Yes, you typically pay your excess upfront |
| Replacement Vehicle | Provided on credit, cost claimed back by CHC. Often like-for-like. | Courtesy car may be provided, depending on policy, often basic model. |
| Management of Claim | CHC manages liaison with insurers and repairs. | Your insurer manages the claim and repair process. |
| Speed of Repair Start | Can be very quick, as CHC acts immediately. | Depends on your insurer's processes and third-party liability acceptance. |
| Impact on No-Claims Bonus | No direct impact as you're not claiming on your policy. | No direct impact long-term if fault is correctly assigned to third party, but may be affected temporarily until costs recovered. |
| Potential Court Involvement | Possible if at-fault insurer disputes CHC costs. | Unlikely, unless recovering uninsured losses without legal cover. |
| "Small Print" Risk | Higher due to complex credit agreements. | Standard insurance policy terms. |
Important Immediate Steps and Further Information
Regardless of which option you choose, there are crucial steps you should take immediately after an accident to protect your position:
- Exchange Details: Get the other driver's name, address, vehicle registration number, and insurance details.
- Gather Evidence: Take photos of the accident scene, vehicle damage, road conditions, and any relevant signage. Note down the time, date, and location.
- Witness Details: If there are any witnesses, get their contact information.
- Report to Police: If anyone is injured, or if the road is blocked, or if the other driver leaves the scene without exchanging details, report the accident to the police.
- Notify Your Insurer: Always inform your own motor insurance company about the accident, even if you don't intend to claim through them. This is often a condition of your policy.
Frequently Asked Questions (FAQs)
Q1: Will a non-fault accident affect my no-claims bonus?
A non-fault accident should not ultimately affect your no-claims bonus. If your insurer pays for repairs and successfully recovers all costs from the at-fault party's insurer, your no-claims bonus should remain intact. However, some insurers might temporarily 'mark down' your bonus until the recovery is complete. If you use a credit hire company and don't claim on your own policy, your no-claims bonus is typically unaffected.
Q2: How long does it take to get my excess back after a non-fault accident?
The time it takes to get your excess back can vary significantly. It largely depends on how quickly your insurer can recover their costs from the at-fault party's insurer. This can range from a few weeks to several months, especially if there are disputes over liability or complex claim details. Regular communication with your insurer can help you track progress.
Q3: What if the other driver is uninsured?
If the at-fault driver is uninsured, the process changes. You would typically claim through your own motor insurance policy. Your insurer would then seek to recover costs from the Motor Insurers' Bureau (MIB). The MIB is an organisation set up to compensate victims of uninsured and 'hit and run' drivers in the UK. You can find more information about making a claim against an uninsured driver from the MIB website (www.mib.org.uk).
Q4: Can I choose my own repair garage?
If you claim through your own insurer, they usually have an approved network of repairers. While you can often request to use your preferred garage, your insurer might only guarantee the work or cover the full cost if you use one of their approved repairers. If you use a credit hire company, they will also typically have a network of garages they work with. Discuss your preferences early in the process.
Q5: What exactly are 'other losses' that a CHC might help with?
'Other losses' refer to any financial losses you incur directly as a result of the accident, beyond vehicle damage. This can include: the cost of alternative travel (if a hire car wasn't provided), loss of earnings if you had to take time off work due to injury or dealing with the aftermath, damage to personal items inside the car (e.g., laptop, phone), or even personal injury compensation for any physical or psychological harm you suffered. CHCs or legal expenses providers can help you pursue these claims.
Conclusion
Experiencing a car accident that wasn't your fault doesn't have to be a prolonged nightmare. By understanding the options available in the UK, particularly the role of credit hire companies and the process of claiming through your own motor insurance, you can navigate the repair process with confidence. Remember to always be meticulous with documentation, read all agreements carefully, and don't hesitate to seek legal advice if you find yourself in a complex situation. Your primary goal is to get your vehicle repaired and to be made whole again, without unnecessary financial stress or inconvenience, and with the right approach, this is entirely achievable.
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