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When you find yourself in the unfortunate situation of a car accident that wasn’t your fault, the aftermath can be a maze of insurance claims, vehicle repairs, and the daunting task of finding alternative transportation. This is where credit hire companies (CHCs) step in, offering a beacon of hope and convenience. But what exactly are credit hire companies, and how can they assist you when your insurer refuses your claim? In this comprehensive guide, we’ll take you through everything you need to know about CHCs in the UK, ensuring you’re well-equipped to navigate these waters.

What is a Credit Hire Company?

A credit hire company provides replacement vehicles to drivers who have been involved in accidents that were not their fault. Unlike traditional car rental services, CHCs offer a unique service where the cost of the hire is recovered directly from the at-fault party’s insurance company. This means that, in theory, the non-fault driver incurs no upfront costs for the replacement vehicle.

Am I eligible for a replacement vehicle through a credit hire company?

When to Consider a Credit Hire Company

Your Insurer Refuses Your Claim

One of the primary situations where a CHC becomes invaluable is when your own insurer refuses your claim. This refusal can happen for various reasons, but it leaves you without a vehicle and potentially facing significant inconvenience and expense. If you find yourself in this situation, consider reaching out to a Credit Hire Organisation for assistance.

Vehicle Insurance and Non-Fault Accidents

In the aftermath of an accident that wasn’t your fault, dealing with vehicle insurance can be frustrating. While you expect your insurer to handle everything smoothly, the reality can be far from it. This is where CHCs shine, providing you with a replacement vehicle while the insurance companies settle the details. If you’re unsure about making a claim against an uninsured driver, you can find more information on the Motor Insurers Bureau website.

What should I do if my insurer refuses my claim?
Consumer: credit hire company

How Credit Hire Companies Work

  1. Initial Contact: After an accident, you contact a CHC, which assesses your eligibility based on the accident being no fault of your own.
  2. Vehicle Provision: If eligible, the CHC provides you with a replacement vehicle comparable to your own, ensuring minimal disruption to your daily life.
  3. Cost Recovery: The CHC then recovers the hire cost directly from the at-fault party’s insurer, bypassing the need for you to front the cost. If you believe your insurance should have covered your coronavirus losses, you can check on the Financial Conduct Authority website.
Am I eligible for a replacement vehicle after my accident?

Benefits of Using a Credit Hire Company

  • No Upfront Costs: CHCs remove the burden of upfront rental costs, providing significant financial relief post-accident.
  • Convenience: They handle the hassle of dealing with insurance companies, allowing you to focus on your daily life.
  • Comparable Replacement Vehicle: CHCs strive to provide a replacement vehicle that matches the standard of your own car, ensuring you don’t feel downgraded.
Can I use a credit hire company if the accident wasn’t my fault?

Choosing the Right Credit Hire Company

Not all CHCs are created equal, and choosing the right one is crucial. Here are some factors to consider:

  • Reputation: Look for companies with positive reviews and testimonials.
  • Transparency: The best CHCs are upfront about their process and any potential costs you might face.
  • Speed of Service: After an accident, time is of the essence. Choose a CHC known for its quick response times.
Which credit hire company is best for my specific needs?

Potential Pitfalls and How to Avoid Them

While CHCs offer a valuable service, there are potential pitfalls:

  • Overinflated Charges: Some CHCs might inflate hire costs, leading to disputes with insurers. Research and choose reputable companies to avoid this.
  • Eligibility Issues: Ensure you are fully eligible for CHC services to avoid unexpected charges later on.
Am I eligible for CHC services and how can I avoid disputes with insurers?

Contend: Your Legal Guide in Navigating Credit Hire Companies

At Contend, we understand the complexities surrounding credit hire companies and vehicle insurance, especially after a non-fault accident. Our AI-driven legal assistance can provide you with personalized guidance, helping you understand your rights and the best course of action. Whether you’re dealing with an insurer who refuses your claim or you’re considering a CHC, Contend is here to offer the legal support you need.

Is my insurer allowed to refuse my claim after a non-fault accident?


Navigating the aftermath of a car accident is never easy, especially when it comes to dealing with vehicle insurance and finding alternative transportation. Credit hire companies offer a valuable service, providing relief and support when you need it most. By understanding how CHCs operate and choosing the right one, you can ensure a smoother journey towards getting back on the road. And with Contend’s AI legal assistance, you’re never alone in this journey. Chat with our legal experts today and take the first step towards resolving your legal challenges with confidence.

Remember, in the complex world of post-accident logistics, knowledge is power, and the right support can make all the difference.

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This material is for general information only and does not constitute
tax, legal or any other form of advice. You should not rely on any
information contained herein to make (or refrain from making) any
decisions. Always obtain independent, professional advice for your
own particular situation. Contend Inc is not regulated by the
Solicitor’s Regulation Authority.