Unenforceable Credit Hire Agreements: Understanding Your Rights as a Motorist
If you`ve ever been involved in a road accident that wasn`t your fault, you may have come across the term “credit hire agreement”. This is a type of agreement between you and a car rental company, where they provide you with a replacement vehicle while your own is being repaired or replaced. However, not all credit hire agreements are enforceable, and it`s important to understand your rights as a motorist to avoid being left with a hefty bill.
What is a credit hire agreement?
A credit hire agreement is a contract between you and a car rental company, where they provide you with a replacement vehicle after you`ve been involved in a road accident that wasn`t your fault. The rental company pays for the cost of the vehicle, and in return, you agree to pay them back once your own vehicle is repaired or replaced.
The problem with credit hire agreements arises when the cost of the rental vehicle is significantly higher than what you would normally pay for a similar vehicle. This is because credit hire companies often charge premium rates and add-ons, such as insurance excess waivers, that can push up the cost of the rental.
Unenforceable credit hire agreements
As a motorist, you have the right to recover the costs of your replacement vehicle from the at-fault driver`s insurance company. However, if the cost of the rental vehicle is considered “unreasonable” or “excessive”, the insurance company may argue that they are not responsible for paying the full amount.
In these cases, the credit hire agreement becomes unenforceable, and you may be left with a large bill to pay. This can be particularly frustrating if you have been paying for a policy that includes a replacement vehicle, as you may end up paying twice for the same service.
How to avoid an unenforceable credit hire agreement
To avoid being left with an unenforceable credit hire agreement, it`s important to understand your rights as a motorist and to choose a reputable car rental company. Here are some tips to keep in mind:
1. Choose a car rental company that is approved by your insurance company. This will ensure that the cost of the rental is within reasonable limits.
2. Check the terms and conditions of the agreement carefully before signing. Make sure you understand the costs involved and any additional fees or charges.
3. Keep all receipts and invoices relating to the rental vehicle, as this will help you to prove the costs if your claim is disputed.
4. If you have any doubts about the cost of the rental, speak to your insurance company or a legal professional.
In conclusion, credit hire agreements can be a valuable service for motorists involved in road accidents, but it`s important to choose a reputable provider and to understand your rights to avoid being left with an unenforceable agreement. By following the tips outlined above, you can ensure that you receive a fair and reasonable settlement for your replacement vehicle.