Loss of use is typically calculated as a daily rate for the period the claimant was without their vehicle. Rates vary by vehicle type and location. If the credit hire claim fails (for example due to lack of impecuniosity evidence), loss of use is often the fallback position. The Wiltshire v Aioi case awarded loss of use when the credit hire claim failed.
What happened in Wiltshire v Aioi Nissay Dowa [2025] and why does it matter?
In this 2025 case, the claimant's credit hire claims failed almost entirely because of template-driven witness statements and poor claims handling. The court criticised "blind following of a company process" and awarded only a fraction of what was claimed. It is a cautionary example of why every witness statement needs to be case-specific, not just a filled-in template.
How long should a credit hire period be?
The hire period should last only as long as reasonably necessary. For repairable vehicles, this typically means the repair period plus a reasonable time for assessment and authorisation. For total losses, it runs until the claimant receives the settlement payment and has had reasonable time to source a replacement.
What is impecuniosity in credit hire?
Impecuniosity is the financial inability of a claimant to pay for a hire vehicle on the open market. Where impecuniosity is established, the claimant may recover the full credit hire rate rather than being limited to the BHR. The test asks whether the claimant could have paid hire charges without making unreasonable sacrifices.
See how LegalDocs Assist handles real credit hire scenarios.