To think that a courtesy car should not be a hidden credit hire car

[whydoieven]

I was involved in a road traffic accident just over week ago (Wednesday 13th) where I was at no fault.

The garage (through the insurance) couldn't pick up till Tuesday (19th). I have cover where I get a courtesy car. When I phoned to update the insurance on Thursday (14th) to say I will need a courtesy car on the Tuesday(19th) they practically threw the car at me to take it the next day (15th). I said my car was still drivable (hardly any damage) and I didn't need it, but in the end I relented.

Because it was such an odd conversation, I started investigating. It turns out that I didn't get a courtesy car, I got a credit hire car, which the "courtesy car" company confirmed yesterday.

I had no idea that my contract is with the hire company. This means that if the other party's insurance objects to the money they have to pay out because of my costs, I am liable for the hire costs if they decide to pursue it. The credit hire means that the hire car can cost £££ per day and it all mounts up. Especially, as I didn't get given a compact car like I expected and my own car is expected to take 3 weeks. I feel like my insurance company, the car hire company and the garage are making money from this, but ultimately I am liable.

AIBU - you should know that courtesy cars can be credit hire cars.
YANBU - it's a racket

What's the difference between a "credit hire car" and a "hire car"?

@Nogaxeh as far as I can tell, a credit hire is like a loan while a hire car (direct hire) is a rental.

All I know is that a credit hire company recovers the cost from the third party insurance, but if they refuse to pay it then I am liable. So hire car might cost me say £40 a day to hire, but a credit hire could cost the third party insurance a couple of hundred for the same car. This mounts up if they refuse to pay it and the credit hire company goes after you.

Have you signed anything?

Which insurance company are you with and who is the credit hire company?

You will have had to sign a credit hire agreement before they delivered you the vehicle. It is also a credit against your name until all costs are recovered.

It's a scary thing that no one wants to tell you about !

I have because at the time I thought I was getting a courtesy car. I didn't start investigating until after I received the car. The initial conversation with Churchill kept playing on my mind over the weekend so that is when I started investigating.

Are you proceeding through your insurers or did they pass you on to a claims management company?

YANBU
When you have cover for a car while yours is in the garage, your insurance should cover, not send you a rental and hope the other cars insurance covers it.

And the insurers will 100% be getting a kick back. Except they’ll call it a rebate.

Churchill is the insurance company. Auxillis is the hire company.

I signed the agreement without realising it. I wish that insurance companies were more transparent about this.

I had a claim about 4 years ago, similarly they practically threw the car at me (I didn’t have courtesy car cover - but they offered me an incentive if I accepted it!!). The claim handler guy basically admitted it’s a racket and he was sure the industry would get clamped down on soon.

Yes, and the garage too, I should think.

Auxillis rings a bell in fact!

There was a big thread on this a while back, someone got hit with a £20k bill from something like this.

Just checked some old paperwork and this is exactly it

Yes, still through the insurance.

I will be asking to speak to a British customer services representative tomorrow (the ones overseas don't seem to have any power to make decisions) and escalating it.

I had this a couple of years ago. Accident was totally not my fault. The other side refused to pay for the hire car (they had no problem with the repairs). I ended up going to court where I was questioned about length of time I had the car, why it was better than my actual car etc. The other side expect you to mitigate your losses, not take an expensive hire agreement. It didn't cost me anything in the end as the 2 insurers eventually sorted it between them, but it was a horrible experience. Be very careful.

Horrible. I started this thread so more people would know about it.

Thanks for the heads up, I had no idea.

Hope you manage to get it sorted op.

I've seen two threads on this before. Absolutely awful. Well done for picking up on it OP and it's definitely worth letting people know about it.

I am sorry to hear that. I think it's more common than people realise. It's a scandal tbh.

If I don't get a resolution, I will ask them to take it back. I am happy to rely on Ubers if necessary.

Can you go back to the insurers and ask them to take the claim back. Auxillis will want to make money out today the claim hence the credit hire agreement.

I did t realise and it eventually went to court as despite the person who said they were driving the other at fault car wasn't driving - their child had taken it for a spin and I had dash cam evidence, the insurers refused to pay the hire car.

I had to supply bank statements, proof of my children's medical appointment, details of their school and why they needed to be driven there etc.

The whole thing took 18 months to resolve and the at fault insurers backed down on the morning of the court

And if you're dealing with Auxillis, you're no longer dealing with your insurers but with a claims management company

Speak to the third party's insurer and ask if they are willing to provide ypu with a courtesy to mitigate their costs.

Auxillis did this credit hire thing with us as as with Pp ended up in court as a witness for auxillis when the third party quibbled the extortionate costs. What was also really sneaky is the fix on our car took forever..which I strongly suspect was down to deliberate stalling on the part of auxillis and their designated "repair centre".
It is a total money making scam.
You should have been given a waiver thing which means you are covered/not liable if the third party refuses the courtesy car bill..but do double check this.

Oh, so there's an interest charge on the cost of the hire too?

This sort of thing massively drives up the cost of everyone's insurance.

Oh I didn't realise they were a claims management company. That pisses me off even more. 🤬