Was I right to refuse a guaranteed courtesy car with my insurance policy?

I have read your comments as to credit hire and it was something I took into account in renewing with a well-known mutual. However the guaranteed courtesy car was an add-on extra which I refused. I thought the bus would be better than credit hire hassle. However, as they charge extra, I think I may have made a mistake? Do you think so? Also how can an insurance company penalise someone for an accident in which they are an innocent party. That sounds incredibly inequitable.

Asked on 10 September 2011 by MB, Gillingham, Kent

Answered by Honest John

'Credit hire' means what it says. You get the car hire "on credit" so if the other party's insurer decides that the cost is too much they can refuse to pay and you end up having to pay. These days, most insurers penalise any driver involved in a claim whether at fault or not, because statistics prove that anyone involved in any claim is more likely to be involved in another one than someone who has not been involved in a claim.

Tags: insurance accidents credit hire courtesy cars claims

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