Rental vs Replacement Car: What’s Covered by Your Insurance?

When your car is off the road due to an accident, theft, or mechanical issues, the last thing you want is to be stranded. This is where courtesy cars, replacement vehicles, and car hire cover come into play. But what’s actually covered by your UK car insurance policy? Does your insurer automatically provide a rental car, or do you need to pay extra for this benefit? In this article, we’ll break down the difference between rental cars and replacement vehicles, what to expect from your insurance car hire cover, and how to make sure you stay on the road when your own car isn’t available.

What Is a Courtesy Car or Replacement Vehicle?

In the UK, a courtesy car or replacement car is a temporary vehicle provided to you when your car is undergoing repairs after an accident or incident. This service is typically arranged by your car insurance provider or the garage carrying out the repairs.

However, it’s important to understand the terms:

• • Courtesy car: Often provided by the garage or insurance company while your vehicle is being repaired after a non-fault accident.
  • Replacement vehicle: Usually a similar car offered when your car is written off or stolen, often for a limited period.
  • Rental car: A hired car that you pay for independently or through an insurance add-on.

Do All UK Car Insurance Policies Include a Courtesy Car?

Not all UK car insurance policies include a courtesy car or replacement vehicle by default. Most comprehensive car insurance policies do offer it, but the terms vary significantly.

Here’s what you need to check:

1. Type of Policy

• • Third party only: No courtesy car or rental car cover is included.
  • Third party, fire and theft: Typically doesn’t include car hire cover unless added as an optional extra.
  • Comprehensive insurance: Often includes a standard courtesy car during repairs, but not necessarily a like-for-like replacement.

2. Fault vs Non-Fault Claim

If you’re involved in an accident that isn’t your fault, you’re more likely to get a replacement car from the at-fault party’s insurer. In fault claims, the cover depends on your own policy.

What’s Usually Covered in Courtesy Car Insurance?

If your insurer provides a courtesy car, you’ll generally get:

• • A small hatchback (like a Ford Fiesta or Vauxhall Corsa)
  • Basic third-party insurance on the hire car
  • Use of the vehicle only during the time your own car is in repair
    

But, here’s what you might NOT get without additional cover:

• • A like-for-like vehicle (e.g., SUV or van)
  • A car if your vehicle is written off or stolen
    
  • A longer hire period
    

What is Guaranteed Replacement Car Cover?

To ensure you're never without transport, many insurers offer Guaranteed Replacement Car (GRC) or Extended Hire Cover as a paid add-on. This gives you access to a similar type of vehicle, even if your car is:

• • Written off
    
  • Stolen
    
  • Or you’re involved in a fault claim
    

Key features of Guaranteed Replacement Car Cover:

• • A similar-sized vehicle
    
  • Available for up to 21 or 28 days
    
  • Available after theft or write-off
    
  • Covers longer repair times
    
  • Optional for an additional premium (typically £20–£40/year)

Real-Life Scenarios: What Happens in Different Cases?

Let’s walk through some common scenarios to understand what’s covered.

Scenario 1: Non-Fault Accident with Comprehensive Cover

• • Your car is damaged but repairable.
  • The garage or your insurer provides a standard courtesy car.
  • You're not charged, and you can drive the vehicle until repairs are completed.

Result: You're covered, but the car may be smaller than your usual vehicle.

Scenario 2: Fault Accident and No Add-On Cover

• • Your car is damaged and takes 2 weeks to repair.
  • Your insurer may offer no vehicle at all, or only if you have comprehensive cover.
  • If your policy lacks a courtesy car clause, you'll need to rent a car privately.

Result: You may face out-of-pocket expenses.

Scenario 3: Your Car Is Written Off

• • The insurer decides it’s uneconomical to repair your car.
  • Without replacement vehicle cover, you won’t get a hire car.
  • You might need to rely on public transport or rent your own vehicle.

Result: Unless you have GRC cover, you're likely on your own.

Scenario 4: Theft of Your Vehicle

• • Your car is stolen and not recovered.
  • Insurers typically do not provide a courtesy car for theft unless you’ve purchased an upgrade.

Result: Without extended hire cover, you won't get a rental car from your insurer.

Things to Watch Out for in the Fine Print

Before relying on your car insurance hire car cover, always read the policy wording. Here are some things that often catc