What is the difference in insurance terms between a hire car and courtesy car?

Our daughter has just suffered a rear-end shunt sustaining severe damage to her Audi. Fortunately, she is signed up with the Audi Ensurance scheme who will deal with the claim for her alongside her regular insurers, as you often advise. Instead of a courtesy car, Audi have offered her a hire car to use while assessment and repairs are carried out. What is the difference in insurance terms between a hire car and courtesy car, and will the costs be recoverable from the at fault party?

Asked on 25 November 2019 by Peter Lawley

Answered by Tim Kelly
A courtesy car is given out of courtesy by the garage for "free" while they repair your car. A credit hire vehicle is arranged to you on the provision of a credit agreement to you, the agreement being that the company you are dealing with will seek to recover your losses on your behalf.
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