Credit hire car post-collision: should I be worried..?
Discussion
Context: I was in my F83 M4 when someone drove into me. It’s all on dashcam; my insurer hasn’t said that the third party has admitted liability, but they haven’t charged me any sort of excess so far, so it seems like they’re confident of a liability admission (if there hasn’t already been one).
I’m paying a fair amount each month for insurance and loan repayments for my M4, so felt I wanted a “like-for-like” courtesy car while mine was being repaired (yes, I know I’m terrible and am the reason everyone’s insurance premium is skyrocketing).
A 73 plate M4 was delivered to me today, and whilst looking through the paperwork, I noticed that they’re charging £999 + VAT per day (!!!).
Based on the above, I have two questions:
1) how likely is my car to be written off (see attached images) based on the hire charges and the fact that Christmas will delay a repair? My car’s worth a bit under £30k probably.
2) is there a risk I end up on the hook for the hire charges?
Thanks in advance!
I’m paying a fair amount each month for insurance and loan repayments for my M4, so felt I wanted a “like-for-like” courtesy car while mine was being repaired (yes, I know I’m terrible and am the reason everyone’s insurance premium is skyrocketing).
A 73 plate M4 was delivered to me today, and whilst looking through the paperwork, I noticed that they’re charging £999 + VAT per day (!!!).
Based on the above, I have two questions:
1) how likely is my car to be written off (see attached images) based on the hire charges and the fact that Christmas will delay a repair? My car’s worth a bit under £30k probably.
2) is there a risk I end up on the hook for the hire charges?
Thanks in advance!
Not an expert, or indeed a layperson; however I recall numerous threads about AMCs and exorbitant charges which, sometimes, came back on the 3rd party and resulted in court cases to recover costs as the replacement cars were viewed as too good.
Why even put yourself in a situation where you could be liable?
Missus crashed our 330 and I asked for the cheapest s
te auto to give her whilst we waited.
Why even put yourself in a situation where you could be liable?
Missus crashed our 330 and I asked for the cheapest s
te auto to give her whilst we waited.
TheDrownedApe said:
Not an expert, or indeed a layperson; however I recall numerous threads about AMCs and exorbitant charges which, sometimes, came back on the 3rd party and resulted in court cases to recover costs as the replacement cars were viewed as too good.
Why even put yourself in a situation where you could be liable?
Missus crashed our 330 and I asked for the cheapest ste auto to give her whilst we waited.
The track record of courtesy car recipients having to stump up costs was 1 in 4000, according to one of the insurance employees I spoke to, so I’m hoping that’s more or less accurate.Why even put yourself in a situation where you could be liable?
Missus crashed our 330 and I asked for the cheapest s
te auto to give her whilst we waited.I’ve put myself in this situation because I’m being selfish: I enjoy driving a snazzy car and don’t want to miss out on doing so because of someone else’s carelessness…
TheDrownedApe said:
Not an expert, or indeed a layperson; however I recall numerous threads about AMCs and exorbitant charges which, sometimes, came back on the 3rd party and resulted in court cases to recover costs as the replacement cars were viewed as too good.
Why even put yourself in a situation where you could be liable?
Missus crashed our 330 and I asked for the cheapest ste auto to give her whilst we waited.
Ditto! Just asked for something with 4 wheels and an engine, got given a Fiesta, did the job and think was about £60 a day (Going back a few years).Why even put yourself in a situation where you could be liable?
Missus crashed our 330 and I asked for the cheapest s
te auto to give her whilst we waited.I didn’t want to be left on the hook for a fortune if it all went wrong and didn’t really want to take the mick. It’s a hire car at end of day, just going to hand it back and as long as gets from A to B, who cares.
leyorkie said:
iMHO I would expect the third party insurer to reject this level of hire costs. Ask yourself is £1000 a day the going rate for this car. 30 days and your car is a total loss.
Honestly, I’ve no idea what the going rate is.Based on what I’ve read, they tend to write a car off once 60% or so of its value has been reached with a claim, so even less than 30 days, without taking into account the cost of the actual repair…
Is your M4 your only car?
Do you have access to any other car tgat you could use?
Do you have the means to hire yourself a similar car (that is comparable but not £399 + vat) per day
If your answers are “Yes” to any or all of the above then you might find the other parties insurance company are not keen to pick up the considerable tab for “hire cist”
They will be the questions asked having been thro a similar circumstance with my nephew (I got home out of the brand new Astra supplied under credit hire but only after he’d racked up hire charges of three times his vehicle value which was written off) As a result even though we had mitigated the costs they were contested and it went to court.
Do you have access to any other car tgat you could use?
Do you have the means to hire yourself a similar car (that is comparable but not £399 + vat) per day
If your answers are “Yes” to any or all of the above then you might find the other parties insurance company are not keen to pick up the considerable tab for “hire cist”
They will be the questions asked having been thro a similar circumstance with my nephew (I got home out of the brand new Astra supplied under credit hire but only after he’d racked up hire charges of three times his vehicle value which was written off) As a result even though we had mitigated the costs they were contested and it went to court.
Super Sonic said:
Don't you have a duty to mitigate costs?
This Phone them up, get them to take the BMW back and have a regular car instead. I was rear-ended a few years ago, had a Corsa as a 'courteousy' car instead of my Fabia (so same size and class of car) and even then the third party insurer queried the cost of it. My insurer forced me to go through Enterprise Claims Management and they charged the Corsa out at £93 a day when on their own website it was £44 for a 4 week period. I was threatened with the cost being reclaimed from me despite the fact my insurer said either use Enterprise or you're on your own!
leyorkie said:
iMHO I would expect the third party insurer to reject this level of hire costs. Ask yourself is £1000 a day the going rate for this car. 30 days and your car is a total loss.
Extra costs such as hire charges are not taken into account when assesing the damage and whether or not it maybe a total lossYou have a legal obligation to mitigate your loss, i.e. keep costs to a minimum, so at £999+VAT per day it's probably fair to say you aren't doing that. Unless you have a compelling reason for needing an M4, which might be hard to justify!
I'd be worried about the hire costs, and if your car is declared a Cat N the hire car will quickly disappear.
On the plus side AMCs don't usually arrange for a hire car unless liability has already been attributed to the other driver.
I'd be worried about the hire costs, and if your car is declared a Cat N the hire car will quickly disappear.
On the plus side AMCs don't usually arrange for a hire car unless liability has already been attributed to the other driver.
B'stard Child said:
Is your M4 your only car?
Do you have access to any other car tgat you could use?
Do you have the means to hire yourself a similar car (that is comparable but not £399 + vat) per day
If your answers are Yes to any or all of the above then you might find the other parties insurance company are not keen to pick up the considerable tab for hire cist
They will be the questions asked having been thro a similar circumstance with my nephew (I got home out of the brand new Astra supplied under credit hire but only after he d racked up hire charges of three times his vehicle value which was written off) As a result even though we had mitigated the costs they were contested and it went to court.
1) yes, the M4 is my only carDo you have access to any other car tgat you could use?
Do you have the means to hire yourself a similar car (that is comparable but not £399 + vat) per day
If your answers are Yes to any or all of the above then you might find the other parties insurance company are not keen to pick up the considerable tab for hire cist
They will be the questions asked having been thro a similar circumstance with my nephew (I got home out of the brand new Astra supplied under credit hire but only after he d racked up hire charges of three times his vehicle value which was written off) As a result even though we had mitigated the costs they were contested and it went to court.
2) my wife has her own car, but works, so I’d be left carless otherwise.
3) probably not: I have some money in savings, but my disposable income wouldn’t cover such costs.
My research suggests these things are often settled before the court hearing, though I may have to undergo a thorough financial vetting if it gets that far.
Honestly, I was hoping the third party’s insurer would contact me directly to mitigate costs (not an obligation I was aware of…), but I’ve heard nothing from them.
bobsavage789 said:
Context: I was in my F83 M4 when someone drove into me. It s all on dashcam; my insurer hasn t said that the third party has admitted liability, but they haven t charged me any sort of excess so far, so it seems like they re confident of a liability admission (if there hasn t already been one).
I m paying a fair amount each month for insurance and loan repayments for my M4, so felt I wanted a like-for-like courtesy car while mine was being repaired (yes, I know I m terrible and am the reason everyone s insurance premium is skyrocketing).
A 73 plate M4 was delivered to me today, and whilst looking through the paperwork, I noticed that they re charging £999 + VAT per day (!!!).
Based on the above, I have two questions:
1) how likely is my car to be written off (see attached images) based on the hire charges and the fact that Christmas will delay a repair? My car s worth a bit under £30k probably.
2) is there a risk I end up on the hook for the hire charges?
Thanks in advance!
Your excess is not payable until such time as it's written off / repaired and you collect itI m paying a fair amount each month for insurance and loan repayments for my M4, so felt I wanted a like-for-like courtesy car while mine was being repaired (yes, I know I m terrible and am the reason everyone s insurance premium is skyrocketing).
A 73 plate M4 was delivered to me today, and whilst looking through the paperwork, I noticed that they re charging £999 + VAT per day (!!!).
Based on the above, I have two questions:
1) how likely is my car to be written off (see attached images) based on the hire charges and the fact that Christmas will delay a repair? My car s worth a bit under £30k probably.
2) is there a risk I end up on the hook for the hire charges?
Thanks in advance!
The repairs on a 30k car would have to total around 15-20k before it is deemed a total loss
As others have said back the M4 and ask for any old s**tbox and stop being so pretentious
I would be sending it back PDQ. As others have said, whilst you, in theory, have the right to a similar car, you also have a duty to keep costs to a reasonable level.
The credit hire companies are often linked to the AMCs and it is a good money earner for them. There is a risk that should the insurer refuse to pay, then you are on the hook for a rather large sum of money.
When I had a no fault accident, the AMC were very insistent that I returned the hire car when I didn’t need it (we were going on holiday abroad) and claim for taxis to and from the airport rather than the car.
Ask for a more basic BMW if you must because arguably you don’t need the M4 rather than risk it.
The credit hire companies are often linked to the AMCs and it is a good money earner for them. There is a risk that should the insurer refuse to pay, then you are on the hook for a rather large sum of money.
When I had a no fault accident, the AMC were very insistent that I returned the hire car when I didn’t need it (we were going on holiday abroad) and claim for taxis to and from the airport rather than the car.
Ask for a more basic BMW if you must because arguably you don’t need the M4 rather than risk it.
There’s a quite clear consensus here!
I think I’ll contact my insurers and seek their advice (though it’s likely they’ll be getting a kickback from the credit hire).
It does seem rather unfair that I’ll be without my P and J for a few weeks, and am not allowed something to provide similar enjoyment in the interim. Could I try contacting the TP insurance myself to see if they’re keen to minimise their losses..?
I think I’ll contact my insurers and seek their advice (though it’s likely they’ll be getting a kickback from the credit hire).
It does seem rather unfair that I’ll be without my P and J for a few weeks, and am not allowed something to provide similar enjoyment in the interim. Could I try contacting the TP insurance myself to see if they’re keen to minimise their losses..?
Super Sonic said:
Don't you have a duty to mitigate costs?
That is my understanding. When my other half’s Macan was hit whilst parked a credit hire company was appointed by our insurers and kept offering us a Range Rover. They tried to sell her the dream of driving around in a free Range Rover for a month. In the end we let the 3rd party insurer hire her a Volvo XC40 from Enterprise. Ultimately anyone that pays car insurance is paying for these credit hire firms in the long run.
OP I drive an F82 M4 and I’d be pretty miffed if something like this happened to it but I think expecting the 3rd party to pay up £1000 per day for another M4 is a joke to be honest.
My view would be if they provided me with a 3 series of some description I’d be happy with it. I’m sure the 3rd party insurer would do that directly.
My view would be if they provided me with a 3 series of some description I’d be happy with it. I’m sure the 3rd party insurer would do that directly.
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