Jurisdiction(s):
United Kingdom

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 quantum disputes: need/type, BHR vs credit rates, hire period, impecuniosity, excess waivers, geographical scope and evidence (including self‑employed drivers)

Published by a LexisNexis PI & Clinical Negligence expert

Practice notes

Defendant insurers frequently challenge matters going to the Quantum of hire charge claims. The usual areas in dispute are:

need/type
period
rate

For further guidance on Credit hire claims, see Practice Notes: Credit hire—an introduction, which includes the Supreme Court case of Armstead (recovery of contractual liabilities owed by the claimant to the hire company for damage to the hire car caused by the defendant), and Credit hire—common liability issues.

Need/type of replacement

Where the claimant had no alternative vehicle, was too injured to drive after the accident, or was on holiday during the hire period, it is typically straightforward to show a replacement was needed. Disagreement can arise if the claimant hires, in place of their own car, an expensive or prestige model. The necessity for such a high-cost vehicle rather than a standard model may be questioned. The same approach applies to the class of car chosen. The claimant must mitigate loss, and part of that obligation is to avoid unreasonable steps that increase the loss. Again, the duty is not a demanding...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

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

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...