Insurance valuations - and repairs
In October last year a car drove onto the near side of my Aston Martin from a side street while I was on a dual carriageway. The driver of the other car and the third party insurer admitted liability. My car was taken to the main dealer for repairs. The dealer put me in touch with its assist programme regarding car hire as part of a no fault claim.
Its nominated car hire company informed me that I am entitled to like for like replacement and supplied me with a Mercedes-Benz CL63 coupe. The Aston was my everyday car and it was vital that I had transport to commute between hospitals as a consultant. The third party insurer has paid all the repair bills and my insurance excess but has refused to pay hire car charges amounting to £23,000, which in their estimate is excessive.
The solicitor for the hire car company who is also acting for me has filed court action and I have been summoned to attend court for a hearing. Where do I stand if there is no satisfactory settlement?
Its nominated car hire company informed me that I am entitled to like for like replacement and supplied me with a Mercedes-Benz CL63 coupe. The Aston was my everyday car and it was vital that I had transport to commute between hospitals as a consultant. The third party insurer has paid all the repair bills and my insurance excess but has refused to pay hire car charges amounting to £23,000, which in their estimate is excessive.
The solicitor for the hire car company who is also acting for me has filed court action and I have been summoned to attend court for a hearing. Where do I stand if there is no satisfactory settlement?
Asked on 19 September 2010 by SC, Abbots Bromley
Answered by
Honest John
You need independent legal advice, not a solicitor who is also acting for the credit hire company. If you signed a credit hire agreement for the hire car, and if you have no additional insurance to cover it, you will be liable for the credit hire. But this is a very nasty racket.
Insurers have compiled a list of fair charges they will pay for credit hire cars, here: www.honestjohn.co.uk/faq/credit-hire
If you are held liable for the cost, you will have to contest it as "unreasonable". If the repair to your car was "accident managed" and the accident management company put you into the hire car, you can also contend that the period of hire was artificially lengthened by extending the period of the repair longer than was necessary.
Of course, it was not essential for you to have had a CL63 to go about your business during the course of the repair. So another line you could take is why were you provided with a CL63 instead of a more modest car and not told you would be liable for the cost if it was not recovered. Other examples I know of are £29,000, £32,000 and £40,000. Amounts that in some cases would have bought the credit hire car.
Insurers have compiled a list of fair charges they will pay for credit hire cars, here: www.honestjohn.co.uk/faq/credit-hire
If you are held liable for the cost, you will have to contest it as "unreasonable". If the repair to your car was "accident managed" and the accident management company put you into the hire car, you can also contend that the period of hire was artificially lengthened by extending the period of the repair longer than was necessary.
Of course, it was not essential for you to have had a CL63 to go about your business during the course of the repair. So another line you could take is why were you provided with a CL63 instead of a more modest car and not told you would be liable for the cost if it was not recovered. Other examples I know of are £29,000, £32,000 and £40,000. Amounts that in some cases would have bought the credit hire car.
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