When you’re involved in a road accident and your car is unusable, the stress can be overwhelming. Alongside insurance claims and repairs, you lose your main way of getting around, whether for commuting, school runs or running a business. That is where a replacement car or credit hire vehicle comes in.
Most people ask two questions: “How much does a credit hire car cost?” and “Do I have to pay anything?” This guide covers both, including who pays, when you are entitled to a replacement car, and how to avoid being left out of pocket.
Quick Answer
- Typical credit hire cost: roughly £40 to £300+ per day, depending on the vehicle.
- If you are not at fault: the cost is normally claimed from the at-fault driver’s insurer, so you don’t pay upfront. Read more in who pays for the credit hire vehicle after an accident.
- If you are at fault or liability is disputed: you may become responsible for some or all of the charges.
What Is a Credit Hire Car?
A credit hire car is a replacement vehicle supplied to a driver whose car has been damaged in a non-fault accident. The hire company provides the car now and recovers the cost later, usually from the at-fault party’s insurer. The “credit” simply means payment is deferred. For the full process, see credit hire explained for UK road traffic accident claims.
Credit hire is usually chosen because:
- There is no upfront payment.
- You can be provided with a vehicle similar to your own where justified (for example, an SUV driver is not expected to manage with a small compact).
- Specialists deal with the insurers and the claim for you.
- You stay mobile while the claim is sorted out.
What Is a Replacement Car, and Who Can Provide One?
A replacement car is any temporary vehicle you use while yours is being repaired or written off. In the UK it can come from:
- Your own insurer, if your policy includes courtesy car cover. Here’s how to get a courtesy car.
- The at-fault driver’s insurer, if the accident wasn’t your fault.
- A credit hire company, which supplies the car on credit while the claim is settled.
How Much Does a Credit Hire Car Cost per Day?
The daily rate depends on the type of vehicle, how long you need it and where you are (London rates are often higher). As a general guide for the UK market:
| Type of vehicle | Typical daily credit hire rate |
|---|---|
| Small city car or hatchback (e.g. Ford Ka) | £40 – £60 |
| Medium car (e.g. VW Golf) | £60 – £90 |
| Large family car or saloon (e.g. Ford Mondeo) | £90 – £120 |
| SUV or 4×4 (e.g. BMW X5) | £150 – £200 |
| Luxury or prestige vehicle (e.g. Mercedes S-Class) | £200 – £300+ |
| Taxi or minicab replacement | Varies, often £150+ |
These are guide figures only, not a quote. Credit hire rates are higher than ordinary rental because they usually include extras such as delivery and collection, insurance, admin and claims handling. Before signing, check the hidden costs in replacement vehicle agreements and whether you will get the same size of vehicle.
Worked Example
Sarah drives an Audi A4 and is hit by a driver who admits fault.
- She is offered a similar car at £150 per day and keeps it for 30 days while her car is repaired.
- Total hire bill: £4,500.
- Because liability is accepted, the at-fault driver’s insurer is asked to pay the bill.
Now imagine the other driver disputes liability. Sarah can still be supplied with the car, but if it is later decided she was at fault, she could become responsible for the £4,500. This is why confirming liability early matters.
Who Pays for a Replacement Car?
It depends mainly on who was at fault and what your policy covers.
If the accident was not your fault
The at-fault driver’s insurer is responsible for the reasonable cost of a suitable replacement vehicle. The charges that are usually claimed include:
- The daily hire charge
- Delivery and collection fees
- Insurance cover during the hire
- Admin and recovery costs
- Sometimes legal and claim handling costs
Your solicitor or the credit hire company presents these in a claim and negotiates or litigates with the at-fault insurer to recover them.
If the accident was your fault
Your insurer isn’t obliged to provide a replacement car. You may still get a courtesy car if your policy includes one, but it is often a small standard car, and the cost is not claimed from anyone else. Without courtesy car cover, you will need to arrange and pay for a replacement yourself.
If liability is unclear or disputed
A credit hire company may still supply a car while the dispute is resolved, but check the agreement carefully. If it is later decided you were at fault, even partly, you could be liable for all or part of the charges. See effective strategies for resolving a credit hire car bill dispute.
Do You Pay Anything for a Credit Hire Car?
If you are genuinely not at fault, you normally pay nothing upfront or during the hire. That said, the arrangement works only when certain conditions are met:
- Your claim is valid and you were not at fault.
- You cooperate fully with the claims process.
- You use the car only as needed and return it once your car is repaired or a settlement is paid.
- You act reasonably. For example, if the at-fault insurer offers a suitable replacement, turning it down without good reason could put part of the cost at risk.
When claims are well documented and you’ve been honest throughout, your exposure is usually small. Always read your agreement so you know exactly what happens if recovery fails, and see your rights to a replacement vehicle after a non-fault accident.
Courtesy Car vs Credit Hire Car
People often confuse the two, but they work differently. For more detail, read credit hire and courtesy cars: key differences explained and courtesy car meaning.
| Courtesy car | Credit hire car | |
|---|---|---|
| Provided by | Your insurer or repair garage | A specialist accident management or credit hire company |
| Vehicle type | Usually a small, standard car | Similar to your own, where justified |
| Cost to you | Free if included in your policy | No upfront cost if you’re not at fault |
| Who ultimately pays | Your insurer, under your policy | The at-fault driver’s insurer |
| How long | Usually only while your car is being repaired | Until repair or settlement, which can take weeks or months |
| Write-off | Usually ends, unless you have enhanced cover | Typically until a settlement is paid |
Credit Hire vs Standard Car Rental
| Credit hire | Standard rental | |
|---|---|---|
| Payment | No upfront payment | Paid upfront |
| Vehicle | Similar to your own | Limited choice |
| Duration | Until your car is sorted | Fixed rental term |
| Legal and claims support | Included | Not included |
| Daily cost | Higher, but normally not paid by you | Lower, but paid by you |
If you are not at fault and eligible, credit hire can be the stress-free option. If liability is uncertain, a standard rental or your own courtesy car may carry less risk. For a deeper comparison, see credit hire vs insured hire vs subrogation.
When Are You Entitled to a Replacement Car?
You can usually get one when:
- Your policy includes courtesy car cover.
- The other driver was at fault and their insurer accepts liability.
- You use a credit hire company, even while liability is still being investigated (with the risks above).
You may not get one when:
- You only have third-party cover with no courtesy car benefit.
- Your insurer doesn’t provide courtesy cars for total loss claims.
- You decline credit hire because of the risk.
The Legal Side: What Does “Reasonable” Mean?
Under UK law the at-fault driver’s insurer must cover the reasonable cost of a replacement car. In practice, insurers can challenge:
- A vehicle that is a higher class than the one you normally drive.
- A daily rate that is higher than the going rate for a comparable car.
- A hire period that is longer than necessary, such as keeping the car after your claim is settled.
- Whether you genuinely needed a car at all.
Courts generally support the principle that victims shouldn’t be left worse off, but they also stop abuse of the system. Being able to show a genuine need (work, family, medical reasons) strengthens your claim. More on this in understanding your consumer rights in credit hire cases.
How Long Can You Keep the Car, and How Does It Affect Cost?
The longer you keep the car, the higher the total bill. You can normally keep it until:
- Your car is repaired and returned, or
- A settlement is paid, if your car is written off.
Delays that aren’t your fault are generally recoverable, but you should return the car promptly once the need ends. Unreasonable delay can leave you or the hire company with charges the insurer refuses to pay. See how long you can keep the credit hire vehicle and what to do if the insurer delays a replacement car.
What If the At-Fault Insurer Refuses to Pay?
Insurers may dispute the need for a like-for-like vehicle, the hire period, the daily rate, or whether a car was needed at all. A good credit hire provider makes sure the paperwork is accurate, the claim is properly prepared, and you are supported if the case goes to court. Your own cooperation and honesty matter as much as anything they do.
What Happens If You Are Found at Fault?
If investigations or a court decide you were at fault, even partially, you may be responsible for all or part of the hire costs. To reduce the risk:
- Report the accident honestly and promptly.
- Provide witness statements or dashcam footage where you have them.
- Cooperate fully with your legal team.
Can Taxi and Uber Drivers Use Credit Hire?
Yes. If your taxi, minicab or private hire vehicle is involved in a non-fault accident, a suitable replacement can often be arranged quickly, sometimes with licensing and signage. The cost is still claimed from the at-fault insurer, so you can keep working. See our PCO car hire service and the guide to credit hire for taxi drivers.
Common Problems with Replacement Car Costs
- Disputes over fault, which can leave you waiting.
- Hire charges that insurers say are inflated.
- Delays in repairs or settlement, which push the bill up.
- Being liable if the claim doesn’t go your way.
How to Protect Yourself
- Check your policy for courtesy car cover, or an enhanced courtesy car option, and tell your own insurer about the credit hire car.
- Confirm liability early, ideally getting the other insurer to accept fault before you sign credit hire paperwork.
- Be reasonable: choose a car similar to your own, not a more expensive one.
- Keep records of why you need the vehicle and how you use it.
- Return the car promptly once your own car is repaired or a settlement is paid.
- Read the agreement and ask what happens if liability is disputed. Use our checklist on what to look for when choosing a credit hire company, and watch out for replacement vehicle scams.
Frequently Asked Questions
How much does a credit hire car cost? Generally between £40 and £300+ per day, depending on the vehicle, hire length and location.
Can I choose any car as a replacement? Not always. You are normally entitled to a similar vehicle where justified, but insurers may challenge a higher-class car.
What if I only have third-party insurance? Your own insurer won’t normally provide a courtesy car. If the other driver is at fault, their insurer or a credit hire company may still be able to provide one.
Can I keep the replacement car if mine is written off? Usually until you receive your insurance payout. After that, further costs may not be covered.
Do I pay upfront for a credit hire car? No. Costs are claimed from the other party’s insurer, but if liability goes against you, you could face the charges.
Why Choose Marigold Services for Credit Hire?
At Marigold Services we:
- Provide quality replacement vehicles suited to your needs.
- Aim for no upfront cost to you if you’re a genuine non-fault driver.
- Support you through the legal and claims process, including car accident claims and insurance claims after an accident.
- Protect your rights with transparency and professionalism.
We check each claim to make sure we support genuine non-fault drivers.
Need a replacement car after a non-fault accident? Contact Marigold Services today, or see our credit hire car service, and we’ll help you get back on the road, with no upfront cost to you.
Related Guides
- What to do after a car accident
- How to get a replacement vehicle after an accident
- Credit hire timeline: from accident to delivery
- What happens if your replacement vehicle gets damaged
- Who pays for the credit hire vehicle after an accident
- Our services and FAQs
This article is general information, not legal advice. Prices are guides only and vary by vehicle, location and provider.
