What Happens If Your Replacement Vehicle Gets Damaged ?

When you’ve been involved in an accident in the UK, insurers or accident management companies often provide a replacement vehicle so you can stay mobile while your own car is being repaired or written off. But what happens if the replacement vehicle gets damaged?

This is a common concern for UK drivers, and the answer depends on the type of replacement car you’re driving, the insurance cover in place, and who is at fault for the damage.

In this guide, we’ll explore the rules, responsibilities, and insurance considerations in the UK when a courtesy car, hire car, or credit hire vehicle is damaged.

Types of Replacement Vehicles in the UK

Understanding the different arrangements is the first step:

1. Courtesy Car

• • Provided by your insurance company or repair garage.
  • Typically a small, standard car.
  • Insurance cover may be limited to third-party only.

2. Credit Hire Vehicle

• • Supplied when the accident wasn’t your fault.
  • Costs are recovered from the at-fault driver’s insurer.
  • Usually a “like-for-like” replacement car.

3. Rental Car

• • Hired from a UK rental company (e.g., Enterprise, Hertz).
  • You’re responsible for damage unless you buy extra cover.

4. Accident Management Company Vehicle

• • Many accident management firms in the UK provide temporary vehicles.
  • Cover depends on the contract you signed.

If the Replacement Vehicle Gets Damaged: Who Pays in the UK?

1. If You’re at Fault

• • You’re usually responsible for the damage.
  • Courtesy cars may be covered under your main insurance, but you’ll pay the excess.
  • With credit hire cars, you could face liability unless optional cover (like excess reduction) was purchased.
  • With rental cars, you’ll be liable unless you bought Collision Damage Waiver (CDW) or excess protection.

2. If Another Driver Is at Fault

• • The at-fault driver’s insurer covers the repair or replacement of the damaged vehicle.
  • You may be given a second replacement car while the claim is sorted.

3. If the Car Is Vandalised or Stolen

• • Whether you’re liable depends on the level of insurance.
  • Courtesy cars may only have third-party cover, meaning you could be personally liable unless extra cover was purchased.
  • Comprehensive hire car cover should protect you, but excess charges may still apply.

Common UK Scenarios

Scenario 1: Accident in a Courtesy Car

If you crash a courtesy car provided by your insurer:

• • Your main insurance policy usually applies.
  • You’ll likely pay your policy excess.
  • If you’re not at fault, your insurer will recover costs from the third party’s insurer.

Scenario 2: Crash in a Credit Hire Vehicle

Credit hire is common in the UK for non-fault accidents. But:

• • If you cause an accident, you may be personally responsible for repairs.
  • Many accident management firms offer waiver insurance for peace of mind.
  • If another driver is responsible, their insurer covers the damage.

Scenario 3: Damage to a Rental Car

If you hired from a UK rental company:

• • Standard cover usually includes third-party liability only.
  • You may face excess fees of £500–£2,000 for damage.
  • Purchasing Excess Reduction Insurance or CDW is strongly advised.

Scenario 4: Total Loss of the Replacement Car

If the replacement vehicle is written off:

• • If you caused the accident, you may be liable for the full value of the vehicle unless insured.
  • If not at fault, the cost will be recovered from the other party’s insurer.

Insurance Rules in the UK

Insurance is the key factor in deciding liability. Here’s how it typically works:

1. Comprehensive Insurance Extension

   • Many UK insurers extend your cover to a replacement vehicle.

   • This means your courtesy car is covered as if it were your own.

2. Courtesy Car Cover

   • Some UK insurers only provide third-party cover on courtesy cars.

   • This leaves you exposed for damage you cause to the vehicle.

3. Credit Hire Insurance

   • Usually insured by the credit hire company.

   • But you may still pay excess or admin charges.

4. Rental Car Cover

   • Rental companies in the UK offer CDW and Super CDW for extra protection.

   • Without this, you could be liable for the full cost of damage.

What to Do If Your Replacement Car Is Damaged in the UK

If your courtesy car or hire car is damaged:

1. Stop and Check Safety

   • Follow UK accident reporting laws.

   • Call 999 if there are injuries.

2. Report the Damage

   • Notify the replacement car provider immediately.

   • Delaying may increase costs or invalidate cover.

3. Collect Evidence

   • Take photos of the scene and damage.

   • Gather third-party details if another driver was involved.

4. Check Your Insurance Policy

   • Confirm whether the replacement vehicle is covered under your policy.

5. Arrange an Alternative Vehicle

   • If the courtesy car is undriveable, ask the provider for a new one.

Financial Liabilities in the UK

If your replacement vehicle is damaged in the UK, possible costs include:

• • Excess payment – usually £250–£1,000 depending on policy.
  • Loss of use fees – charged by hire companies while the car is unavailable.
  • Repair costs – if not insured.
  • Loss of no-claims discount – if the claim goes through your insurer and you’re at fault.

How to Protect Yourself in the UK

1. Read the Terms Before Driving Away

   • Ask if the vehicle is fully comprehensive or third-party only.

2. Take Photos at Pick-Up and Drop-Off

   • Avoid being blamed for pre-existing damage.

3. Buy Excess Protection

   • Especially important with UK rental or credit hire vehicles.

4. Drive Carefully in Unfamiliar Cars

   • Courtesy cars may be smaller; credit hire cars may be more powerful.

FAQs (UK-Specific)

Q1: Will I lose my no-claims bonus if I damage a courtesy car?
Yes. If the accident was your fault, it will go through your insurance and affect your NCB.

Q2: Do UK insurers always give a courtesy car?
Not always. Courtesy cars are usually included only in comprehensive policies, and subject to availability.

Q3: Who pays if my hire car is vandalised?
If you bought comprehensive or CDW cover, the insurer will pay. Without it, you may be liable.

Q4: Can I be charged for scratches on a UK rental car?
Yes. Even minor scratches and tyre damage often result in charges unless you bought excess cover.

Conclusion

In the UK, if your replacement vehicle gets damaged, the outcome depends on who is at fault and the type of insurance cover. If you’re responsible, you may need to pay an excess or, without insurance, the full repair cost. If another driver is at fault, their insurer covers the damage.

The safest approach is to check the insurance terms before driving away, buy additional excess protection if needed, and treat the car as if it were your own.

That way, if your courtesy car, hire vehicle, or credit hire car is damaged, you won’t be left with unexpected bills or legal headaches.