Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Credit hire definition

What does Credit hire mean? Credit hire describes the provision of a replacement vehicle to a non‑fault motorist after a road traffic accident, supplied on credit with no upfront payment, on terms that the hire charges are later pursued from the at‑fault insurer as part of the damages claim. The term is not defined by statute; it is a descriptive expression shaped by case law (particularly in England and Wales) and market practice (including the ABI General Terms of Agreement). Arrangements are typically made through a credit hire organisation (CHO). To recover charges, the claimant must show: (1) need for a broadly comparable vehicle; (2)...

Credit hire in road traffic claims: enforceability, evidence on need, impecuniosity and rates, quantum, and CPR pleading and procedure (England and Wales)

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Practice notes

Replacement vehicles and hire generally

Where a motorist’s car has been harmed in a collision to such an extent that it demands repair or outright replacement, they will quite possibly need a stand‑in vehicle for day‑to‑day Use. Some motorists may, perhaps through their own insurance policy, have access to a courtesy car for the spell when their vehicle is unavailable to them. However, many drivers will not enjoy that facility and will instead consider hiring an alternative vehicle to bridge the gap. This is especially so where no courtesy car is offered. Conventional vehicle hire will, as a rule, require the Hirer to settle the full rental charges when the hire period ends, commonly after paying a sizeable deposit up front in practice. If the substitute car is required for a prolonged period, the cumulative hire charges can become considerable. A driver, particularly if wholly innocent, may be reluctant, or simply unable, to meet such outlay from their own funds. Where the driver was not responsible for the Accident, they may be able to obtain a replacement by a different arrangement, namely by Credit hire.

What is credit hire?

The term ‘credit hire’ is used to describe this service because the...

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Andrew Wilson

Andrew has more than 25 years’ experience of working in the fields of personal injury and occupational disease litigation, acting for both claimants and defendants. He trained at L Bingham & Co, gaining early experience in a number of important high profile claims involving the MIB. During the 1990s Andrew worked at Hextalls and then Kennedys, predominantly for defendants across a range of motor, employers’ liability and public liability matters many of which involved serious injuries or death. More recently, he has dealt with cases for claimants who have suffered serious injuries or occupational disease. He was a partner in a large specialist practice. He has provided seminars to solicitors and other legal professionals both for an external conference company and in house on the workings of the Civil Procedure Rules in the context of personal injury claims, amongst other...

Web page updated on 21/05/2026

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