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My daughter was the driver of the front car of a four car concertina shunt about four years ago. Her car was written off and she was offered a hire car as a condition of her insurance policy. She was advised by her solicitor to keep the hire car until the insurance claim was settled but after several months, when the claim had still not been settled, she borrowed some money to buy another car and returned the hire car. The insurance claim was eventually settled but the issue of the cost of the hire car is still ongoing. She has had to provide evidence that she could not afford to replace her car with an equivalent vehicle earlier than she did even though she returned the hire car prior to the insurance settlement. She is currently being told by her solicitor that the bill for the hire car has now reached £14,000.00, a staggering sum for a base model Golf. She is concerned that she might be liable for some or all of that amount which, of course, she would be unable to pay. Has anyone had experience of a similar situation and can anyone offer advice as to what steps we should take to speed up the process as it is causing her great concern and worry. Many thanks. RayJay
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If car insurers are paying this sort of money out, is it any wonder our premiums are rising at the rate they are. How do they get to that sort of figure for a few months hire ?
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Thanks Mr X. I agree entirely. 14 grand is basically the cost of the car new. Someone is making a killing.
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insurance claim was eventually settled but the issue of the cost of the hire car is still ongoing. She has had to provide evidence that she could not afford to replace her car with an equivalent vehicle >>
There may have been further developments since this case, ask your solicitor for advice:
www.publications.parliament.uk/pa/ld200304/ldjudgm...m
HOUSE OF LORDS
OPINIONS OF THE LORDS OF APPEAL FOR JUDGMENT
IN THE CAUSE
Lagden (Respondent) v. O'Connor (Appellant)
[2003] UKHL 64
"This appeal is a sequel to the decision of the House in Dimond v Lovell [2002] 1 AC 384. It represents a further step in clarifying the obligations of motor insurers regarding the cost of hire of a replacement car while a damaged car is undergoing repair. It is part of the long continuing contest between motor insurers and credit hire companies. The issue raised is narrow, and the amount of money involved in this case is modest. But the issue is important because it raises a principle of general application affecting many people."
Previous cases:
www.hmcourts-service.gov.uk/judgmentsfiles/j371/co...m
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also see
www.zenithchambers.co.uk/articles/CREDIT_HIRE_atic...c
"case of Powszedniak v Allen and Helphire (Cogent Leeds, currently proceeding through the Manchester County Court), the Claimant was seeking hire charges of £16,567.50. "
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Thanks jbif for both of your replies. I will research these with great interest.
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One more:
www.12kbw.co.uk/docs/Complete%20Delegate%20Pack%20...f
see the section:
"Keeping up to speed with credit hire Tim Petts 28thFebruary 2007"
page 28 onwards
Edited by jbif on 26/05/2009 at 13:11
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