The claimant must take reasonable steps to keep losses to a minimum. This means they should not hire an unreasonably expensive vehicle, should chase repairs to avoid unnecessary delays, and should consider reasonable offers from the defendant's insurer. However, the standard is reasonableness, not perfection.
What is an intervention letter in credit hire?
An intervention letter is an offer from the defendant's insurer to provide a hire vehicle directly, bypassing the credit hire arrangement. If the claimant rejects the offer without good reason, the court may limit recovery to the cost of the intervening offer. The claimant must address why they rejected it.
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 does "need for hire" mean in credit hire claims?
Need for hire means demonstrating that the claimant genuinely needed a replacement vehicle during the hire period. This includes showing they regularly used their vehicle for commuting, school runs, medical appointments, transporting pets, or other daily needs that could not reasonably be met by public transport or other means.
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