Car accidents are not only costly but also inconvenient. For instance, if you are involved in a car accident, you’ll probably have to do without your car. However, depending on your policy, your insurance company may elect to hire a car for you or give you a courtesy car as you wait for settlement to be processed. However, this can end up costing you a lot of money. As far as you’ll want to return on the road, you should be wary of the hidden costs that come with courtesy or hired cars. Here are some of the top things you should know regarding the hidden costs of car hire claims.
Courtesy Cars
After an accident, you might be given a courtesy car in case your car is repairable. Usually, a courtesy can is characterized by a smaller engine hatchback. In most cases, insurers will give you a courtesy car with its policy. Alternatively, they may give you a courtesy car as an additional extra. These courtesy cars come with a few conditions. However, you must first agree to use your insurance company’s approved garages. Plus, getting the courtesy car is also subject to demand and availability.
Credit Hire Cars
Credit hire cars is a situation where the insurance company gives you a replacement car. Here, there is nothing paid or received until the completion of the hire. It’s also important to note that even if it was your mistake (i.e. during the accident), your insurance company may elect to give you a credit hire car. The cost of this credit hire car will be extracted from the third party insurance company. Good insurance companies prefer offering like-for-like credit hire cars because they care about the wellbeing of their customers. This means that you get a car that’s similar to the car in all aspects.
On the surface, this can look attractive. However, it’s important to look at the offer. In particular, pay close attention to the costs that come with this option. You might end up covering these charges in case of a dispute. Remember, the term of the replacement car will be signed by you. Depending on who was at fault, the invoice will be sent accordingly (to you or the other party). Plus, the at-fault insurer might not accept liability. Thus, the company may dispute the charges and make you pay the bills.
The Costs
Most companies bill credit hire cars per day. The cost of a credit hire car is dependent on the type of car, explicit specifications, as well as its value. Insurance companies prefer getting you a car that’s similar to the one you owned before. However, if it’s impossible to get you a similar four-wheeler, they will choose a car from your car’s group. Also, the cost of credit hire cars can skyrocket. Thus, you need to get a written agreement. Also, consult with your association of insurers for more guidelines.
The Bottom-Line
Don’t just be in a rush to get back on the road after a car accident without taking into account the effects of car hire on your claims. Get the facts right. Know the hidden costs that come with car hire on your car insurance claims. The above guide contains key things you should know regarding how courtesy or car hire can affect your claims.