What Is Credit Hire and Am I Entitled to One?
If you've been in a non-fault car accident and your car is off the road, credit hire lets you get a like-for-like replacement vehicle straight away, at no upfront cost to you, with the charges recovered later from the at-fault driver's insurer.
It sounds almost too simple, and that's usually the first thing people ask us: what's the catch? There isn't one, provided your claim is handled correctly from day one — which is exactly why it's worth understanding how the process works before you agree to anything.
How Does Credit Hire Actually Work?
When someone else causes an accident, the law aims to put you back in the position you were in before it happened. That includes your mobility. Instead of you paying out of pocket for a hire car and waiting to be reimbursed, a credit hire arrangement means an accident management company provides the replacement vehicle on credit — the bill is settled directly with the at-fault driver's insurer once liability is confirmed.
Most reputable credit hire providers and insurers operate under the General Terms of Agreement (GTA), an industry framework that sets out agreed rates and processes for different vehicle categories. Where both sides are GTA signatories, claims tend to move more smoothly because the rates and expectations are already agreed in principle.
You're generally eligible for credit hire if:
The accident wasn't your fault — liability needs to sit with the other driver, even if this is only confirmed later.
You need a vehicle — for work, family, or day-to-day life. If you genuinely don't need a car, you're unlikely to be entitled to hire costs.
You hold a valid licence and meet standard driver requirements (most providers ask for a minimum driving history, typically six months or more).
You don't need to have fully comprehensive insurance to use credit hire — one of its main advantages is that it doesn't touch your own policy at all.
What Kind of Car Will I Get?
Credit hire aims to provide a like-for-like replacement — a vehicle that closely matches your own in terms of size, specification, and capability, so your day-to-day life isn't disrupted more than it already has been. Hire vehicles are grouped by category, and the replacement you're offered should reasonably match your own car's group.
How Long Can I Keep the Hire Car?
Usually, for as long as your car is being repaired, or until your claim for a written-off vehicle is settled. The key word insurers focus on afterwards is "reasonable" — the hire period, the vehicle type, and the daily rate all need to be justifiable, which is why it pays to use a provider who documents everything properly from the outset.
Does Credit Hire Affect My No-Claims Bonus?
No. Because the claim is made against the at-fault driver's insurer rather than your own policy, your no-claims discount isn't used up. It's worth knowing, though, that being involved in any incident — fault or not — may still be visible to insurers at renewal, which is a separate issue from your discount itself. We cover this in more detail in our guide to whether making a claim affects your insurance.
What If My Car Is Written Off?
You can still be entitled to a credit hire vehicle while your total loss claim is being valued and settled, provided the accident was non-fault. Read our guide on how your car's value is worked out if it's written off for more on that process.
Frequently Asked Questions
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No. A properly arranged credit hire agreement means you pay nothing at the start — the costs are recovered from the at-fault driver's insurer once liability is agreed.
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You can still be provided with a hire vehicle while liability is being resolved, though your provider will keep this under review, since your ongoing entitlement depends on the accident ultimately being confirmed as non-fault.
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You're entitled to choose an independent provider. You don't have to accept whatever your own insurer offers, though it's worth comparing what's on the table before deciding.
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You may still be entitled to a replacement vehicle, though the process works slightly differently.
This guide provides general information about credit hire in England and Wales and does not constitute legal or financial advice. Your individual entitlement depends on the circumstances of your accident. For a free assessment of your situation, get in touch with our team at Back on the Road UK.