Do I Need to Inform My Own Insurance About a Credit Hire Car?

Being involved in a car accident can be a stressful experience, especially when the damage is not your fault. If you’re in the UK and have been provided with a credit hire car after a non-fault accident, you might wonder: “Do I need to tell my own insurance company?” The answer isn’t always straightforward — but this detailed guide will help you understand your responsibilities, risks, and best practices when it comes to credit hire vehicles in the UK.

What is a Credit Hire Car?

In the UK, a credit hire car is a temporary replacement vehicle provided on a “credit basis” by a credit hire company (CHC) when your own car is undriveable after a non-fault accident.

You don’t pay upfront for the car. Instead, the cost is recovered later from the at-fault driver’s insurer.

Key Features of Credit Hire in the UK:

• • No upfront cost to the non-fault driver
  • Similar or equivalent car to your own
  • Charges claimed from the at-fault insurer
  • Often arranged via claims management companies or accident assistance services

This system exists to help non-fault drivers maintain mobility without being penalised financially.

Is it Legally Required to Inform Your Insurer?

There is no UK law that directly requires you to inform your insurer about using a credit hire vehicle. However, most insurance policies contain a contractual obligation to inform your insurer about any accident, even if you are not claiming through them.

So while it’s not a legal requirement, it may be a policy requirement. Failing to do so could breach your contract and cause issues later.

Why Informing Your Own Insurance is Usually a Good Idea

Let’s break down the main reasons why you should inform your insurance company even if you’re using a credit hire vehicle and not making a claim on your own policy.

1. Your Insurance Terms Likely Require It

Most UK car insurance policies — whether comprehensive or third-party — require you to report any incident or accident involving your car, regardless of fault or whether you’re claiming.

Failure to disclose could:

• • Breach your contract
  • Impact your cover
  • Complicate future claims

2. To Protect Your No Claims Discount (NCD)

Although you may not be claiming, insurers often want to record the incident. If your insurer isn’t informed and a dispute arises over fault, your No Claims Discount might be impacted without you realising it.

When notified properly, your insurer can mark the claim as “notification only” so your NCD remains unaffected.

3. To Avoid Future Premium or Renewal Problems

When it’s time to renew your policy or switch to a new insurer, they will ask if you’ve been involved in any accidents — even if you were not at fault and didn’t claim.

If your insurer isn’t aware of the incident, this could:

• • Affect your ability to switch providers
  • Lead to cancellation or refusal of future claims
  • Be seen as non-disclosure (a form of insurance fraud)

4. Your Insurer Might Be Contacted by the Other Side

If the at-fault driver’s insurer disputes liability, they may contact your insurer for evidence or assistance. If your insurer wasn’t informed about the incident, it could create delays and complications in resolving the matter.

What If I’m Using a Claims Management Company (CMC) or Solicitor?

In the UK, many credit hire arrangements are made through a Claims Management Company (CMC), solicitor, or accident management service. They often promise to handle everything for you, including dealing with the at-fault insurer.

However, most CMCs do not inform your insurance company unless explicitly requested. That means it’s still your responsibility to notify your insurer unless you’re sure they’ve done it on your behalf.

Will Informing My Insurer Raise My Premium?

Possibly — but not always.

While fault accidents almost always raise premiums, non-fault accidents can still have an impact. Insurers assess risk based on whether you’ve been involved in any incident.

That said, it’s still better to declare the incident and protect yourself from:

• • Claims being rejected
  • Policies being cancelled for non-disclosure
  • Legal complications

Transparency now can prevent much bigger problems later.

What Could Happen If You Don’t Tell Your Insurer?

If you fail to inform your insurer about a credit hire car or the accident that caused it, you may face the following risks:

a. Breach of Contract

Most policies require you to report any accident within a set timeframe (e.g. 24–48 hours). Failing to do so could lead to:

• • Invalidated cover
  • Cancelled policy
  • Difficulties if you later need to claim

b. Future Claims Could Be Denied

If you’re involved in another incident and your insurer finds out you had a previous undeclared accident, they could:

• • Reject your new claim
  • Refuse to renew your policy
  • Class it as non-disclosure

c. Legal Costs May Fall Back on You

If the at-fault party’s insurer disputes the claim for the credit hire car and you lose in court, you may be personally liable for the hire costs. Having your insurer aware and involved early helps protect your position.

How to Notify Your Insurer

It’s generally very easy to inform your insurer and protect yourself. Follow these steps:

Step 1: Check Your Policy

Read your insurance documents to understand what your obligations are in terms of notification.

Step 2: Contact the Insurer

Phone or email them and say:

• • You were involved in a non-fault accident
  • You are not making a claim on your policy
  • You have been supplied a credit hire vehicle
  • The at-fault party’s insurer is handling the claim

Step 3: Request “Notification Only” Status

Ask the insurer to mark the record as notification only, so it doesn’t affect your No Claims Discount or future premium directly.

Step 4: Keep Records

Note who you spoke to, the date/time, and any reference numbers. This documentation may help if there’s a dispute down the line.

FAQs About Credit Hire and Insurance in the UK

Q: Does a credit hire vehicle count as a claim?

A: No — as long as you are not claiming on your own insurance, and the claim is made against the at-fault party’s insurer, it doesn’t count as a claim. However, it is still considered an “incident.”

Q: Will I be charged for the credit hire car if the claim is disputed?

A: You may be, depending on your agreement with the credit hire company. Always read the small print. If the other insurer refuses to pay, the hire company might try to recover the cost from you — unless the case is won in court.

Q: Will my insurer provide a courtesy car instead?

A: Not always. In non-fault cases, insurers often do not provide a like-for-like replacement, whereas credit hire companies do. This is one reason many people choose credit hire options.

Q: Can I drive a credit hire car on my existing insurance?

A: Usually, credit hire cars are insured separately by the hire company. You do not need to transfer your insurance. But again, check the terms and ensure you’re legally covered to drive.

Summary Table

Final Word

In the UK, while you’re not legally forced to inform your insurer about a credit hire vehicle, most insurance policies require you to report any incident or accident — even if you’re not claiming on your own cover.

Being proactive by informing your insurer:

• • Keeps you compliant with your policy
  • Protects your No Claims Discount
  • Prevents complications during renewals or future claims

So, if you’re driving a credit hire car, pick up the phone or drop your insurer an email. It’s a small step that offers big peace of mind.