Can a Business Hire a Car Not At Fault?
Yes. A business can hire a replacement vehicle when its car is off the road through someone else's fault, and in New South Wales the at-fault driver's insurer is the party that ultimately carries the reasonable cost of that hire. This is not a favour or a perk. It is a recoverable head of loss, and it applies to a ute on a building site at Prestons just as much as it applies to a director's sedan parked outside a CBD office.
What changes for a business is the paperwork, not the principle. Someone has to sign, someone has to be accountable for the vehicle, and the file has to be clean enough that the other side pays without a fight. Get those three things right and the fleet keeps moving.
Key takeaways
- A business can hire a replacement car not at fault, and the at-fault insurer ultimately carries the reasonable cost of that hire.
- Eligibility turns on fault and actual loss of use, not on whether the claimant is a person or a company.
- The person who signs the hire and credit hire documents carries the contingent liability if the claim is not recovered.
- A clean file with fault evidence, proof of use and documented signing authority is what gets the claim paid without argument.
- The replacement should match the damaged vehicle in size, seating, drivetrain and capability, not simply be a car that runs.
The short answer for businesses
Eligibility does not turn on whether you are a person or a company. It turns on fault. If another driver caused the collision, your business has a claim for the loss of use of its vehicle, and a replacement hire is the usual way that loss is measured. A sole trader with one Hilux, a family company with four cars on the road, a fleet of twenty spread across depots at Blacktown and Smeaton Grange, and a novated lease driver whose employer payrolls the car are all in the same position.
Three qualifications matter in practice.
- The business must have actually lost the use of the vehicle, not simply owned it. A car sitting unused in a yard is a weaker claim than a car that was booked out every day.
- The replacement has to be reasonable. A prestige or performance vehicle is replaced with something comparable, because that is what the business was deprived of. Our like-for-like page explains how that is assessed.
- The claim has to be run properly. Insurers do not pay because you believe you were right. They pay because the evidence shows it.
Businesses also have an advantage individuals often lack: records. Logbooks, job sheets, toll statements, service invoices and booking calendars all help establish what the vehicle was worth to the business each day it sat idle. If you want the legal background rather than the practical version, the decision in Arsalan v Rixon confirmed that loss of use is compensable in its own right even where no substitute vehicle was hired, which is why the argument is now about quantum, not entitlement.
Why the at-fault insurer carries the cost
Compulsory third party insurance covers personal injury, not property. The damage to your car, and the income you lose while it is repaired, sit under the at-fault driver's property or comprehensive cover, or under their own pocket if they are uninsured. Either way, the liability is theirs.
This is why a not at fault hire is structured the way it is. Your business has a loss. The at-fault party is obliged to make that loss good. A replacement vehicle is the cleanest, most defensible way to quantify it, because it produces an invoice with a date range on it rather than an argument about what a day of lost work was worth.
In practice the hire is arranged through credit hire. A provider supplies the vehicle, the business signs an agreement to pay if the claim fails, and the provider then recovers the cost from the at-fault insurer. You can read the mechanics on our how credit hire works page, and the difference between that and simply running the car through a fleet account on credit hire vs fleet account.
Bookings through this site are fulfilled by Drive Tribe (drivetribe.com.au), and this site is part of that group. The rate, the bond and every fee are shown on the car's page before payment, so there is no surprise on the invoice when the claim is finalised.
If you would rather see the fleet and the process side by side, the business and fleet page at accident replacement vehicles for business and fleet owners sets out how a claim is opened and what happens next.
Age limits are set per car. Drivers under 25 can hire most cars with Young Driver Cover; the exact terms are shown before you pay.
Who signs and who is on the hook
Two documents usually matter: the hire agreement and the credit hire authority. The person who signs is the person liable if the claim is not recovered, so this is not a decision to leave to whoever happens to be at the yard when the car is collected.
Common arrangements:
- The company signs. A director or an authorised officer signs on behalf of the entity. The company carries the contingent liability. This is the cleanest structure for a fleet of any size.
- The individual signs. A sole trader, a partner, or an employee who has been given written authority. If an employee signs personally without authority, you have a problem when the claim is disputed.
- The fleet manager signs under delegated authority. Perfectly workable, provided the delegation is documented and the insurer can see it. Our fleet manager checklist covers the authority step.
Whoever signs, the driver of the replacement needs to be named and licensed. If a different staff member will use the car, say so at booking. Handing the keys to an unlisted driver can void cover on the replacement itself, which turns a recoverable claim into a live problem.
On the liability question, be clear about what you are signing. The credit hire agreement typically says that if the claim is not recovered from the at-fault party, the business pays. That is the trade for not paying up front. Read it, and if the wording is unfamiliar, have your solicitor or broker look at it before signature.
Not at fault? Start your claim
A like-for-like replacement car while yours is repaired. No cost to you when the other driver is at fault.
Start my claimWhat the business needs to provide
The file is what wins or loses the recovery. Insurers reject claims for missing documents far more often than for legal reasons. Have this ready before the car is collected.
- Proof of fault. The other driver's name, licence details, registration, insurer and claim number if they gave one. A police event number where police attended. Photos of the position of the vehicles before anything moved.
- Proof the vehicle was in use. A logbook, job schedule, delivery docket, toll statement or booking calendar showing the car was working, not resting.
- Proof of the vehicle. Registration, and the lease or novated lease documents if the car is financed. Our novated lease page covers that variation.
- Authority to sign. A company extract, a letter of delegation, or a signed authority from a director.
- Driver details. Licence of the person collecting, and of anyone else who will drive it.
What you do in the first hours matters more than most people expect. Photograph the scene from several angles, note the time, and get the other driver's details before the conversation ends. If the collision happened on the M4 near Prospect at 7.40am, the tow truck and the traffic will both be there quickly, and details get lost in the noise. Our first 24 hours guide and evidence to collect at the scene page are worth reading before you need them.
Matching the replacement to the damaged vehicle
Like-for-like does not mean identical. It means comparable in the ways that matter to the business: size, seating, towing capacity, drivetrain, and the presence the vehicle gives you in front of a client. A director who normally drives a long-wheelbase sedan to meetings at Barangaroo is not made whole by a compact hatchback, and an insurer that argues otherwise is arguing about the wrong thing.
Some practical matches for Sydney businesses:
| Damaged vehicle | Reasonable replacement |
|---|---|
| Executive sedan, client-facing | Large luxury sedan, chauffeur option where the driver is not the principal |
| Seven-seat family or crew SUV | Seven-seat SUV, diesel, AWD |
| Performance sedan | Performance sedan of similar output and drive layout |
| Work ute | Ute or SUV with equivalent tray or towing capability |
Two examples from the fleet show the range. A 2015 Mercedes-Benz S500 L suits a business whose principal is driven to appointments and needs the rear seat to be a workspace. A 2019 BMW X7 or a Mercedes-Benz GLS suits a business moving a crew or a family between sites, with seven seats, diesel economy and all-wheel drive for wet runs out to Penrith or down the Illawarra.
Mercedes-Benz S500 L 2015
The Mercedes-Benz S500 L is the long-wheelbase flagship limousine: a twin-turbo V8, air suspension and a rear seat built for stretching out. For a wedding, a milestone or simply...
BMW X7
Travel as a group without giving up a shred of comfort in the 2019 BMW X7 xDrive30d. Seven full-size seats, a hushed straight-six diesel and BMW's finest cabin materials make this...
If the damaged car was a performance model, the comparison is tighter. A 2024 BMW M3 Competition G80 xDrive is the sort of car that gets replaced with something in the same bracket, not with a base sedan, because the business chose that car for a reason.
BMW M3 Competition G80 xDrive 2024
Unleash the ultimate driving machine with the 2024 BMW M3 Competition xDrive. Powered by a relentless 3.0L Twin-Turbo inline-six engine producing an incredible 390 kW, this...
Our like-for-like and work ute vs SUV comparison pages go further into how the argument is framed.
If the insurer disputes liability
Disputes are common and they are not the end of the claim. The at-fault insurer may allege you contributed, may say the collision happened differently, or may simply sit on the file while it waits for its own insured to respond. Meanwhile your car is at the repairer and the business is still working.
What to do:
- Do not stop. The hire continues while liability is unresolved, provided the claim is properly documented. Stopping the hire hands the insurer the outcome it wants.
- Keep the evidence tight. A clean file with photos, a police event number and a statement written the same day is hard to argue with.
- Expect delay rather than denial. Most disputes are slow, not hostile. Our insurer delays page covers the follow-up rhythm.
- Escalate in writing. A short, factual letter beats a phone argument every time. Our dealing with insurers page has the structure.
If liability is genuinely contested and the amount is significant, take advice. That is a conversation for your solicitor, not for a hire company, and any general information here is not personal legal advice.
The practical point for a fleet is that a disputed claim should not idle a vehicle. Move the work to the replacement, keep the records, and let the recovery run its course.
Keeping the fleet moving during repairs
Downtime is the real cost. A prestige panel repair in Sydney can take weeks, and the delay is rarely the panel work itself. It is the parts. A bumper or a headlight for a European model can sit in a warehouse overseas while your car occupies a hoist at a repairer in Alexandria or Silverwater.
Plan around it:
- Book the replacement before the repairer starts. The hire period should run from the day the car came off the road, not from the day the assessor finally looked at it.
- Ask the repairer for a realistic date. Our how long prestige repairs take page explains what drives the timeline.
- Reallocate work immediately. If the damaged vehicle was a ute on a site at Prestons, a seven-seat SUV will not carry the same load. Match the replacement to the job, not to the badge.
- Track the daily cost of the loss. Lost jobs, subcontracted cartage and missed appointments are all part of the picture and belong in the file. See business vehicle off road downtime costs.
For a fleet of any size, a standing arrangement beats a scramble. Our business and fleet hub and fleet loss of use claims in NSW set out how a repeatable process looks, and partners and referrals explains how repairers, brokers and solicitors work with us.
Start a business replacement claim
Open the claim the day the car comes off the road. Have the other driver's details, the police event number if there is one, photos, and the name of the person authorised to sign. Then choose a vehicle that matches what you lost and get it delivered to the yard, the office or the driver's home.
Delivery is available across Sydney, and collection is from Mascot, Parramatta, Merrylands and other bases. Minimum driver age is 20 on most cars and 25 or 30 on some, and the bond equals the excess you choose. Paying by card carries a small surcharge; bank transfer and cash on the rental do not. Cars can be booked from a single day, which suits a short repair or a job that only needs covering for a week.
If the damaged vehicle was a seven-seat family or crew SUV, a Mercedes-Benz GLS is a straightforward match, with diesel running costs and all-wheel drive for the wet run out to Richmond or down to Wollongong.
Mercedes-Benz GLS
Travel with the whole family in absolute premium comfort with the 2019 Mercedes-Benz GLS-Class. Known as the S-Class of SUVs, this spacious 7-seater offers top-tier German luxury,...
To see the full process, start at not at fault accident replacement, browse the wider accident replacement vehicles range, or go straight to accident replacement car Sydney. If you run a fleet, or you refer clients as a repairer, broker or solicitor, contact us and we will set the process up before you need it.
Questions people ask
Is a business eligible for a not at fault hire car?
Does the business pay anything up front?
What happens if the other insurer denies fault?
Who should sign the hire agreement for a company vehicle?
How long can a business keep the replacement vehicle?
Can a sole trader claim a replacement vehicle?
Injured in the accident?
A replacement car covers the car. For legal advice about an injury, speak to Jameson Law, the most trusted personal injury firm in NSW (motor vehicle accident claims) on (02) 8806 0866.
Ready when you are
Start the claim online in five short steps, or call 0468 011 118. Replacement hires are arranged and fulfilled by Drive Tribe.
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