Credit Hire
The concept of 'Credit Hire' is firmly established. Where a defendant tortfeasor has caused the loss of the claimant’s vehicle the claimant may obtain another vehicle to compensate when such is necessary.
Credit hire companies aim to promptly assist the claimant after the loss by providing a suitable replacement vehicle. These companies, unlike traditional hire firms, do not require immediate payment from the hirer. Instead, they provide the claimant with a vehicle under an agreement where payment is deferred until a claim is made against the negligent driver. Typically, the hire charges are recovered from the defendants insurer, allowing the claimant to use the car at no direct cost. The credit hire company generates profit by offering this credit facility.
Disputes may arise regarding the hire charges, in which case it falls upon the defendant or claimant to gather evidence demonstrating whether the claimant's decision to opt for credit hire was reasonable or not, especially if more cost-effective alternatives were available.
Basic Hire Reports have proven highly effective for both defendants and claimants in supporting their arguments regarding the necessity of a credit hire vehicle and the associated hire charges.
