Not at Fault? Here's What You're Actually Entitled To

If you have been involved in a car accident that was not your fault, the at-fault driver's insurer owes you more than most people realise. Not just a repair. Not just a quick settlement cheque. A full package of losses, including a replacement vehicle for as long as you reasonably need one.

The problem is that most claimants do not know their rights, and the at-fault insurer is not going to volunteer the information.

1. You Are Entitled to a Like-for-Like Replacement Vehicle

If your car is off the road because of an accident that was not your fault, you are entitled to a replacement vehicle comparable to the one you have lost the use of — not a basic runaround.

A claimant who has been deprived of their vehicle through no fault of their own should be put back in the position they were in before the accident, as far as money can do it. If you were driving an SUV, you are entitled to a similar SUV. If you were driving a van for work, you are entitled to a similar van.

2. What Is Credit Hire?

Credit hire provides a replacement vehicle to non-fault claimants at no upfront cost. The credit hire company supplies the vehicle and recovers the charges directly from the at-fault insurer.

In Lagden v O'Connor [2003], the House of Lords held that an impecunious claimant — one who cannot reasonably afford to pay for hire themselves — is entitled to recover credit hire charges even where those charges are higher than a basic spot hire rate.

What you typically get with credit hire:

• A like-for-like replacement vehicle.
• Delivery and collection at a time and place that suits you.
• Comprehensive insurance cover on the vehicle.
• No excess.
• No upfront payment.

This package is sometimes called the "basket of services" — significant because when insurers challenge the hire rate, the court considers the full package, not just the daily vehicle cost in isolation.

3. The Insurer Will Probably Try to "Intervene"

Shortly after the accident, the at-fault driver's insurer often contacts you directly with their own replacement vehicle offer. This is called intervention.

Under Manton Hire v Ash Manor Cheese [2013], an intervention offer must contain sufficient information to make an informed comparison: the specific vehicle, delivery date, terms, insurance, and any excess. If the offer is vague, it may not be a genuine alternative — and you are not obliged to accept it.

In Bee v Jenson [2007], the Court of Appeal confirmed that a claimant is entitled to reject an offer that would expose them to a financial liability they would not otherwise face. If the insurer's vehicle carries an excess, that is a legitimate reason to prefer credit hire.

You are not being difficult by declining. The legal burden of proving you failed to mitigate rests on the insurer, not on you (Copley v Lawn [2009]).

4. How Long Can You Keep the Hire Vehicle?

You are entitled to a replacement vehicle for the reasonable period of repair, or in the case of a total loss, until you receive your settlement and have had a reasonable opportunity to replace your vehicle.

The at-fault insurer does not get to drag out the settlement process and then complain about the length of hire (Copley v Lawn [2009]).

5. What About the Hire Rate?

Insurers frequently challenge credit hire rates, arguing the claimant should have hired at a "basic hire rate" (BHR). In Stevens v Equity Syndicate Management [2015], the Court of Appeal set out the proper approach: the lowest rate available from a mainstream provider in the relevant area, taking into account the benefits provided.

A bare daily rate from a budget hire company that requires a deposit, charges an excess, and does not deliver the vehicle is not a like-for-like comparison with a credit hire package.

6. What You Should Do Right Now

• Collect evidence at the scene. Photos, other driver's details, witnesses.
• Do not admit fault. Liability is a legal question.
• Report to your insurer. Most policies require notification.
• Arrange your replacement vehicle. You can use credit hire — you do not have to wait for the at-fault insurer.
• Be cautious with the other insurer. Read their offer carefully.
• Keep records of everything. Receipts for taxi, parking, lost earnings.
• Do not rush to settle.

After a non-fault accident, the law is on your side. The at-fault insurer's job is to minimise their payout. Your job is to know your rights.

Disclaimer: this guide is general information, not legal advice.