Should I have accepted a hire bike?

I was involved in an accident last year where my motorcycle was hit from behind at a junction. It took two months for repairs to be completed, after which my bike was returned to me. During that time, my insurer provided me with a replacement bike and assured me that I would not have to pay any associated hire costs.

However, the third party’s insurer is now refusing to cover those hire charges. As a result, the hire company’s solicitors have issued legal proceedings in my name to recover their costs. What could happen if the claim is unsuccessful?

Ram, by email

Answer

Credit hire arrangements are a common solution for individuals who need a temporary replacement vehicle while their own is being repaired following an accident. While they offer short-term convenience, they can carry certain risks, and the specific terms of the agreement are crucial in determining your position.

If the legal claim is unsuccessful, the outcome for you will depend largely on the terms and conditions of the credit hire agreement you entered into, as well as whether the hire company decides to enforce those terms.

Such agreements often provide quick access to a replacement vehicle without any upfront payment. However, the associated hire charges can accumulate rapidly and are typically higher than standard rental rates. This frequently leads to disputes with insurers and, in some cases, legal proceedings.

It is therefore important to carefully review any credit hire agreement before signing, ensuring you fully understand your obligations, as well as the potential risks and alternative options available.