Credit Hire


What is Credit Hire?

Credit hire refers to the supply of a like-for-like replacement hire vehicle following a non-fault traffic accident. The replacement vehicle is supplied on a credit hire basis to a motorist who cannot afford to pay for a replacement car.

The cost of the credit hire is calculated each day that the vehicle is being hired (daily rate), depending on the make, model, specification, and value of the replacement car.

Any motorist involved in a non-fault accident whose vehicle has suffered damage is entitled to obtain a replacement vehicle to get them back on the road.

A motorist is eligible to receive a replacement hire vehicle if, (i) their damaged vehicle is declared unroadworthy due to the damage suffered in the accident; or (ii) when their damaged vehicle is being repaired.

If the damaged vehicle is declared unroadworthy or is left with a Bodyshop for repair, then the motorist will need to sign a contract with a Credit Hire Organisation (CHO) to receive a replacement vehicle.

The credit hire agreement comes to an end when the damaged car is repaired and returned to the owner or when the at-fault insurer makes a pay-out for the pre-accident value for any vehicle beyond repair (in other words a total loss).

The length of time which a replacement hire vehicle is used is defined as the ‘period of hire’.

The CHO subsequently recovers the cost of the vehicle hire from the insurer of the driver who was at fault for causing the accident.

Many issues often arise in securing the recovery of hired vehicle costs and this is where Watermans Solicitors can assist.

Credit Hire Claims

Watermans Solicitors have a specialist legal team dedicated to dealing with all aspects of claims that arise after an accident has occurred, including vehicle-related damage such as vehicle recovery, repairs, total loss payments, diminution in value as well as credit hire claims.

We provide a focus on credit hire recovery in addition to any claims for personal injury, physiotherapy, lost income, or any other losses that our clients may have suffered because of an accident that was not their fault.

Credit hire claims are notoriously difficult to litigate and settle. Several technical arguments on enforceability as well as arguments about need and mitigation of loss, require specialist knowledge and legal expertise.

Why choose Watermans Solicitors

Credit hire claims are difficult to settle. Often, the at-fault insurers seek to raise arguments to minimise both the daily rate and the period of hire they must compensate clients for.

We have extensive expertise in acting for clients throughout the length and breadth of Scotland in recovering hire costs through the Sheriff Court, Sheriff Appeal Court, and the Court of Session.

We have a wealth of experience in recovering credit hire costs that our clients incur when using a hire car.  We are also familiar with claims governed by the terms of the Association of British Insurers (ABI) General Terms of Agreement (GTA).

Ultimately we aim is to make a swift, successful recovery on behalf of our clients and allow them to move on and put the accident and its inconvenience behind them.

If you want to know more about our Credit Hire claim recovery process, then please call us on 0131 555 7055 or 0141 430 7055 for a free consultation and we’ll be happy to assist you.