Like for Like Replacement Vehicles & Credit Hire Explained
If your vehicle has been damaged in an accident caused by another driver, you may need replacement transport while it is being repaired or while a total loss claim is settled.
Depending on your circumstances, you could receive a like for like replacement vehicle. This should provide the space, function and features you reasonably need to continue your normal routine.
Sandown Coachworks can assess your claim, arrange the repair and help identify the most suitable replacement vehicle option. Our team will explain the arrangement before you agree to it.
What Does Like for Like Mean?
A like for like replacement is a vehicle that broadly matches the type and purpose of your damaged vehicle. It does not have to be the same make, model, colour, age or specification.
The assessment may consider:
Vehicle size and number of seats
Body style and carrying capacity
Automatic or manual transmission
Accessibility or mobility requirements
Performance and engine class
Towing or load requirements
Business or commercial use
Prestige vehicle class, where justified
Electric or hybrid requirements are also considered. The replacement should meet your reasonable transport needs, though vehicle availability and the circumstances of the claim can affect the exact vehicle provided.
Examples of Like for Like Replacement Vehicles
Family Hatchback
A small family hatchback may be replaced with another vehicle of a similar size and class.
Seven Seat Vehicle
A seven seat vehicle may require a replacement with enough seats for the driver's household.
Commercial Van
A commercial van may need similar load space, payload capacity and access arrangements so that the driver can continue working.
Prestige Saloon
A prestige saloon may justify a comparable replacement when its size, performance, business use or vehicle class forms part of the driver's reasonable need.
Adapted Vehicle
An adapted vehicle requires a more detailed assessment. The provider will need to understand the driver's mobility needs and any controls, ramps or access features required.
Why the Right Replacement Vehicle Matters
An unsuitable vehicle can cause practical and financial problems.
You may need your vehicle to commute, take children to school, attend medical appointments, visit customers or carry tools and equipment. A replacement that is too small or lacks the required features may prevent you from completing these journeys.
The vehicle should remain proportionate to your needs and the claim. The replacement provider will usually ask how you use your vehicle, whether another suitable vehicle is available and which features you need.
What Is Credit Hire?
Credit hire is one way of obtaining a replacement vehicle after an accident that was another driver's fault.
Under a credit hire arrangement, you sign an agreement with a hire provider. You do not usually pay the hire charges at the start. The provider supplies the vehicle on credit and later seeks to recover the reasonable charges from the insurer of the driver responsible for the accident.
The agreement is made in your name. You should read its terms, daily hire rate and liability provisions before signing.
Credit hire may be arranged alongside vehicle repairs through an accident management service. It is separate from claiming for a courtesy car under your own motor insurance policy.
How Does Credit Hire Work?
The process usually follows these stages.
- The accident and available evidence are reviewed.
- The circumstances are checked to assess who was responsible.
- Your need for replacement transport is discussed.
- A suitable vehicle class is identified.
- The credit hire terms and charges are explained.
- You sign the agreement and receive the replacement vehicle.
- The vehicle remains with you for a reasonable period while your vehicle is repaired or the claim progresses.
- The hire provider seeks payment from the at fault driver's insurer.
You may need to assist with the recovery process. This could include providing documents, responding to questions or giving evidence if the charges are disputed.
Credit Hire and Courtesy Cars
Credit hire vehicles and courtesy cars work in different ways.
| Credit Hire Vehicle | Courtesy Car |
|---|---|
| Supplied under a separate hire agreement | Usually supplied under your insurance policy or by the repairer |
| Often selected according to your reasonable vehicle needs | Commonly a small standard vehicle |
| Hire costs are claimed from the at fault driver's insurer | Cover depends on your policy or the repairer's availability |
| You sign an agreement containing the hire charges | Policy terms determine the arrangement |
| You may need to assist with recovering the charges | Your insurer usually manages the provision |
| Availability depends on the claim assessment | Availability depends on your policy and repairer |
A courtesy car may meet your needs when you only require basic transport. Credit hire may be considered when you need a particular vehicle size, number of seats, transmission, load capacity or vehicle class.
When Credit Hire May Be Appropriate
Credit hire may be considered when:
- The available evidence supports a non-fault claim
- Your vehicle is unsafe, unroadworthy or undergoing repairs
- You have a reasonable need for another vehicle
- You do not have access to another suitable vehicle
- Your existing courtesy car cover does not meet your needs
- The proposed vehicle and hire period are reasonable
- You understand and accept the agreement
Every claim requires an individual assessment. Liability, evidence, vehicle type, repair times and personal circumstances can all affect whether credit hire is suitable.
What Should You Check Before Signing?
Ask the provider to explain:
- The daily hire rate
- Who is responsible for the charges
- What happens if liability is disputed
- What happens if some hire charges cannot be recovered
- Whether separate cover protects you from unrecovered costs
- How long you can keep the vehicle
- What you must do during the recovery process
- Any mileage restrictions
- The fuel and charging policy
- Your responsibility for damage, fines and parking charges
- How and when the vehicle must be returned
Keep a copy of the signed agreement and any related insurance documents.
Credit hire agreements are commonly provided outside the customer's motor insurance policy. The customer could become responsible for costs when the third party insurer disputes liability or refuses to pay some of the charges.
Financial Ombudsman Service
Why Could Credit Hire Charges Be Disputed?
The at fault driver's insurer may examine whether:
- Its policyholder was responsible for the accident
- The claimant needed a replacement vehicle
- Another suitable vehicle was available
- The replacement vehicle class was reasonable
- The daily hire rate was reasonable
- The hire continued for a reasonable period
- The claimant helped to limit the overall loss
- Delays in the repair or claim could have been avoided
Clear evidence helps the provider support the claim. This may include accident photographs, witness details, correspondence, repair records and information showing why the vehicle was required.
How Long Can You Keep a Replacement Vehicle?
The hire period depends on the claim.
Repairable Vehicles
Hire will usually relate to the reasonable period needed to assess and repair the damage. Parts delays, engineering inspections and insurer approval may affect the length of the repair.
Written Off Vehicles
Hire may continue for a reasonable period while the total loss payment is agreed and the driver arranges another vehicle. The agreement should explain when the replacement must be returned.
You should respond promptly to requests for information and return the vehicle when instructed. Unnecessary delays can lead to part of the hire charge being challenged.
What Happens When Liability Is Disputed?
The credit hire provider may be unable to recover its charges immediately when the drivers disagree about responsibility.
The provider will review the evidence and decide whether the claim can continue. You may be asked for photographs, dashcam footage, witness information or a written description of the collision.
The outcome can affect who pays the hire charges. Check the agreement before accepting the vehicle and ask what protection applies if liability remains disputed.
What Happens if the Vehicle Is Written Off?
A vehicle may be declared a total loss when it cannot be repaired safely or when the repair cost is not economically reasonable.
Your need for replacement transport may continue while the vehicle is assessed and the settlement is arranged. The hire provider should tell you when the vehicle must be returned and how the settlement affects the hire period.
Read more about the routes a claim can take in our guide to non-fault accident claims.
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David Churcher
1 month ago
Wow my car what a picture sooooooo nice brand new what can I say world class such lovely…
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Top drawer, attention to detail and quality, with a strong custome rfocused disposition. In brief, stati….
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How Sandown Coachworks Can Help
Sandown Coachworks provides accident management and repair support for drivers involved in non-fault accidents.
Our team can:
- Review the accident information
- Explain the available claim routes
- Arrange recovery where required
- Assess the vehicle damage
- Help arrange suitable replacement transport
- Communicate with the relevant insurer
- Complete the repair at one of our bodyshops
- Keep you informed throughout the claim
We operate BS 10125 certified accident repair centres in Shepperton, Camberley and Heathrow. Our technicians repair standard, prestige, commercial, electric and hybrid vehicles using the correct equipment and repair methods.
Questions About Replacement Vehicles and Credit Hire
How is the replacement vehicle category decided?
The provider considers your damaged vehicle, how you use it and which features you reasonably require. Availability and the facts of the claim can affect the final vehicle supplied.
What information will I need to provide?
You may need to provide your driving licence, insurance details, accident information and evidence showing why you need replacement transport. Commercial users may also need to explain the vehicle's business purpose and load requirements.
What happens if an identical vehicle is unavailable?
The provider may supply another model from a broadly comparable class. It should have the main features required for your normal journeys or work.
How does having another vehicle affect credit hire?
The provider will ask whether you have access to another suitable vehicle. Credit hire may be harder to justify when another available vehicle can reasonably meet your needs.
Who pays for fuel, electricity and parking?
You remain responsible for the fuel or electricity you use, along with parking charges, tolls and fines incurred during the hire. Check the agreement for its return fuel or charging requirements.
What happens if the hire vehicle is damaged?
Report any damage to the hire provider immediately. Your agreement should explain the insurance cover, excess and any costs for which you may be responsible.
How does credit hire affect my insurance?
You must still tell your own insurer about the accident in line with your policy terms. A credit hire claim is usually handled outside your motor insurance policy, although the accident may still appear in your claims history.
What should I do immediately after a non-fault accident?
Collect the other driver's details, take photographs, record witness information and report the accident as required by your policy. Contact Sandown Coachworks before agreeing to a repair or replacement vehicle so that we can explain the available options.
Discuss Your Replacement Vehicle Options
If your vehicle has been damaged in an accident caused by another driver, contact Sandown Coachworks. We will review the circumstances, explain the replacement vehicle options and arrange the correct repair route for your vehicle.
