What Is Credit Hire, and Will It Cost Me Anything?
You have been offered a replacement vehicle "on credit hire" and it sounds like a catch. Here is exactly what it is, who pays, and the questions worth asking before you agree.
Credit hire means you get a replacement vehicle now and the cost is claimed from the at-fault driver’s insurer rather than paid by you up front.
Handled properly, it costs you nothing. You are not taking out a loan and you are not paying a deposit. You are claiming a loss caused by someone else.
How it actually works
The word "credit" puts people off. It simply means payment is deferred until the claim is settled, not that you are borrowing money.
You get a vehicle
A like-for-like replacement is delivered to you, usually the same day, while yours is off the road.
We record the loss
The hire is documented as part of your claim, with the evidence needed to show it was reasonable and necessary.
The at-fault insurer pays
The charges are recovered from the insurer of the driver who caused the accident. Not from you.
You are not borrowing money. You are claiming a loss that somebody else caused.
Why it exists at all
If someone crashes into you, being left without a car is part of the harm done. The law’s starting point is putting you back where you would have been.
Most people cannot fund weeks of hire out of their own pocket and then wait months to be reimbursed. Credit hire bridges that gap - you get the vehicle when you need it, and the recovery happens afterwards.
Fair questions to ask before you sign
Credit hire is legitimate and widely used, but you should understand what you are agreeing to. Ask any provider:
What happens if liability is not established?
A reputable provider will tell you clearly where you stand. Ask for it in writing rather than as a verbal reassurance.
What are my duties?
You will normally have to co-operate with the claim, keep the vehicle insured and looked after, and return it promptly once yours is available.
How long am I covered for?
Hire should last while you genuinely need it. Keeping a vehicle longer than reasonably necessary can put part of the charge at risk.
Want it explained without the sales pitch?
Tell us what happened and we will tell you honestly whether credit hire is the right route for you.
When it may not be right for you
If you have a second vehicle available, barely drive, or your own policy already provides a genuinely suitable replacement, you may simply not need it.
Being straight about that matters. Claiming hire you did not need is the fastest way for an insurer to challenge the whole thing - and we would rather tell you that up front than argue it later.
Common questions
No. There is no borrowing, no interest and no credit agreement in the usual sense. Payment is deferred and then recovered from the at-fault driver’s insurer.
No. Credit hire is not a lending product and does not depend on your credit rating.
It does not automatically stop the hire, but it changes the picture and needs discussing honestly at the outset. We will tell you where you stand before anything is arranged rather than afterwards.
Not with PTH Claims. If any provider asks you for a deposit or an up-front payment on a non-fault claim, ask them to explain exactly why in writing.
Rates reflect the class of vehicle and the local market. Where a claim is challenged, insurers often compare against basic hire rates, which is why evidence gathered at the start matters so much.
Terms and conditions apply to all services described on this page. Free recovery, storage and replacement vehicles are provided on the basis that the charges are recovered from the at-fault party’s insurer. We will explain the terms in plain English before anything is arranged.
Before we act for you we are required to verify your identity and to carry out fraud and anti-money laundering checks. This may include checks with credit reference and fraud prevention agencies, which will leave a record on your file.
Where fraud is suspected, information may be shared with fraud prevention agencies, insurers and law enforcement. Providing false or misleading information in support of a claim may mean your claim is refused, and can be a criminal offence.