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Are 'credit hire' cars risky?
My car insurance is due for renewal in two weeks and my current insurer has offered a renewal at £235, which represents a 17 per cent increase. Is this normal or should I seek alternatives?
Secondly, I understand there can be issues with courtesy cars. For example, when a car is off the road after an accident, credit hire companies charge the earth for a courtesy car with problems for the insured when the at-fault insurer refuses to pay this bill. Are there any ways around this?
Secondly, I understand there can be issues with courtesy cars. For example, when a car is off the road after an accident, credit hire companies charge the earth for a courtesy car with problems for the insured when the at-fault insurer refuses to pay this bill. Are there any ways around this?
Asked on 2 November 2012 by MC, Berwick upon Tweed
Answered by
Honest John
That rise is not sufficiently excessive to worry about, compared with the potential penalties from switching insurance companies.
'Credit hire' cars are so called because the user gets them on credit in the expectation that an insurer will eventually pay. If the insurer does not pay, the user is then held liable. Many car manufacturers are now running their own accident management schemes which ensure that cars are repaired to full dealer retail standards without involving credit hire. So far, that seems to be the best answer.
'Credit hire' cars are so called because the user gets them on credit in the expectation that an insurer will eventually pay. If the insurer does not pay, the user is then held liable. Many car manufacturers are now running their own accident management schemes which ensure that cars are repaired to full dealer retail standards without involving credit hire. So far, that seems to be the best answer.
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