Credit hire when the at fault driver is in a hire car
When the at fault driver is in a hire car, your credit hire claim is still against that driver, but the rental company's insurer usually steps in to handle it. You deal with them, not the driver, and the paperwork goes to a claims team that handles rental fleets every day.
That changes the rhythm of the claim. Liability is often easier to pin down because the rental company has its own incident report, but the insurer may push back harder on the hire itself. Here is how it works in New South Wales, from the first photo at the scene to the final settlement.
Key takeaways
- The at fault driver is liable even if they were in a hire car; the rental company's insurer usually handles the claim.
- Two insurers may be involved, so confirm in writing who is responding before you sign anything.
- Photograph the rental car's plates, signage and the scene, because the rental company has its own incident report.
- Liability is often easier to prove in a rental car crash, but the insurer may still dispute the hire rate or duration.
- Like-for-like replacement is available, and the rate, bond and fees are shown on the car's page before payment.
- Who is liable when the at fault driver is in a hire car
- The rental company's insurer versus the driver's own insurer
- What to photograph at the scene
- Why liability is usually easier to prove
- How the claim is routed and who you deal with
- Getting your prestige replacement organised
- What happens if the rental company disputes the damage
- Timelines for repair and hire recovery
- If you are a fleet manager or repairer
- Where to book a replacement car in Sydney
Who is liable when the at fault driver is in a hire car
The driver who hit you is liable. That does not change because they were in a rental. Under New South Wales law, the person who negligently caused the collision owes you the reasonable costs of putting you back where you were, including a replacement car while yours is repaired.
The rental company is not liable for the crash unless its own negligence caused it, which is rare. What the rental company does have is an insurance policy covering its vehicle and, often, an indemnity from the driver. That policy is what pays your claim in practice.
If the at fault driver was in a rideshare or a work vehicle, the same principle applies but the insurer may be a commercial fleet policy rather than a retail one. The identity of the insurer matters less than the fact that liability sits with the driver.
One wrinkle: if the at fault driver was uninsured or the rental company's policy has an exclusion, your credit hire provider may need to pursue the driver directly. That is rare, but it is why providers ask for the driver's details at the start.
For a fuller explanation of the legal basis, see not at fault explained.
The rental company's insurer versus the driver's own insurer
Two insurers can be in the room. The rental company's insurer covers the rental vehicle and usually handles third party claims arising from its use. The driver's own insurer may also be involved if they have comprehensive cover that extends to hire cars, which many Australian policies do.
In practice, the rental company's insurer takes the lead because the claim is reported through the rental company's incident process. The driver's insurer may sit behind the scenes and reimburse the rental company's insurer later. You should not have to chase both.
If you are contacted by two insurers, ask each one to confirm in writing who is handling your claim. Do not sign anything from either until you know which policy is responding. If they point at each other, that is a dispute you can hand to your credit hire provider.
This is also where a hire car company's own excess reduction product can muddy things. If the at fault driver bought excess reduction, the rental company may waive its own excess but that does not affect your right to recover from the at fault driver.
More on how these disputes play out is at dealing with insurers.
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.
What to photograph at the scene
Your photos are the spine of the claim. Start wide and work in.
- The rental car's number plate and any fleet or company signage.
- The rental agreement or keys if the driver will show you, but never pressure them.
- The driver's licence and their contact details, if they are willing.
- The position of both cars before anyone moves them, including lane markings and traffic signals.
- Skid marks, debris and the point of impact on both vehicles.
- The other driver's insurance details if they have them, but do not rely on getting them.
If the rental car has a company name on the side, photograph that too. It tells your provider which fleet insurer to approach. If the driver is in a rideshare, photograph any signage and the app screen if they will show you, but do not touch their phone.
At night on Parramatta Road or the M4, get the street lights and the nearest exit sign in a wide shot. On Military Road at Mosman, the parking signs and shopfronts help establish the scene. These details are what an insurer uses to test your version of events.
If the police attend, get the event number. If they do not, file a report online within 24 hours. More at first 24 hours.
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A like-for-like replacement car while yours is repaired. No cost to you when the other driver is at fault.
Start my claimWhy liability is usually easier to prove
Rental cars are driven by people who may be unfamiliar with Sydney roads, which is why rear-end and lane-change collisions are common. Those are the easiest collisions to prove. A rear-end collision is almost always the following driver's fault. A lane-change collision is usually the changer's fault.
The rental company also generates a paper trail: a rental agreement, a pre-rental inspection report and sometimes telematics. That evidence can support your version. It can also be used against you if the rental company claims the damage pre-existed, so get your own photos.
Another factor: rental company insurers handle these claims in volume. They know the drill and are less likely to fight liability on a clear rear-ender. They may still dispute the hire rate or the duration, which is a different argument.
If the at fault driver was in a rental and left the scene, liability can be harder. That is when a police report and any dashcam footage become critical. See what not at fault means in NSW.
How the claim is routed and who you deal with
Your credit hire provider lodges the claim with the rental company's insurer. You should not have to call the rental company yourself. If you do, you will be passed to a claims team that is not set up to talk to you.
The route usually looks like this:
- You report the crash to your credit hire provider with photos, the other driver's details and the police event number.
- The provider identifies the rental company and its insurer.
- A letter of demand and a hire agreement are sent to that insurer.
- The insurer accepts or disputes liability, usually within weeks.
- Once liability is accepted, the insurer pays the hire charges directly to the provider.
Your point of contact is the provider, not the insurer. If the insurer calls you, you can refer them to the provider. Do not give a recorded statement without advice.
If you need a replacement car while this runs, bookings are fulfilled by Drive Tribe (drivetribe.com.au), the trading name of Australian Business Holdings Pty Ltd, and this site is part of that group. You can see the fleet and start a booking at not at fault accident replacement.
Getting your prestige replacement organised
Like-for-like means a car that matches yours in class, not just any courtesy car. If you drive a BMW M3, a base Corolla is not like-for-like. Your provider should offer something comparable, and the at fault insurer is expected to pay for it.
In Sydney, the practical questions are where the car is delivered and when. If your car is at a repairer in Alexandria, you want the replacement dropped there. If you are in Parramatta, a base in Parramatta or Merrylands is easier. Delivery is available on most cars.
For a performance sedan, the BMW M3 Competition G80 xDrive is a natural match. It is all-wheel drive, five seats and based in Parramatta. Minimum driver age is 25.
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If your car is a large SUV, the Mercedes-Benz GLS is a seven-seat diesel with all-wheel drive, based in Mascot. Minimum driver age is 20. The Tesla Model X P100D is a seven-seat electric SUV based in Merrylands, also minimum age 20, with a 0-100 time of 3.1 seconds.
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Tesla Model X P100D 2017
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If you are not sure what matches, see like for like and replacement by car type.
What happens if the rental company disputes the damage
The rental company may argue that some of the damage pre-existed, or that you contributed. This is more common when the rental car has existing damage recorded on its condition report. If you have your own photos of the impact point, you can rebut it.
If the dispute is about the hire itself, the insurer may say your car was drivable, or that you did not mitigate your loss. Mitigation means you took reasonable steps to keep costs down. Choosing a like-for-like car at a reasonable rate is mitigation. Renting a supercar for six months is not.
If the dispute escalates, your provider may issue proceedings. Most disputes settle before a hearing. The key is to keep every receipt, every email and every photo.
If the rental company's insurer alleges the at fault driver was not authorised to drive the rental, they may deny indemnity. That does not erase the driver's liability to you. Your provider can pursue the driver personally.
More on this at when an insurer disputes a credit hire claim and common reasons an insurer disputes a hire car claim.
Timelines for repair and hire recovery
In Sydney, prestige repairs can take longer than the insurer expects. Parts for a BMW M car or an AMG may come from overseas. A repairer in Alexandria or Artarmon may quote four to eight weeks for a structural repair. Your hire runs for that period, subject to the insurer's approval.
Typical stages:
| Stage | Typical time |
|---|---|
| Report to provider | Same day |
| Liability decision | 2 to 6 weeks |
| Repair authorisation | 1 to 3 weeks |
| Parts and repair | 4 to 12 weeks |
| Hire recovery | 1 to 3 months after repair |
If your car is written off, the hire ends when the payout is agreed, not when you buy a new car. See credit hire and write offs.
For a full timeline, see credit hire timeline from crash to settlement.
If you are a fleet manager or repairer
Fleet managers see this scenario often. A company car hit by a rental means two insurers, two claim numbers and a driver who still needs to get to meetings. The cleanest path is to let a credit hire provider handle the recovery while you keep the fleet moving.
Smash repairers in Sydney can refer customers to a provider and get the replacement car delivered to the workshop. That keeps the repair on schedule and the customer off the phone to insurers.
Solicitors and brokers refer clients who need a like-for-like car without paying upfront. The provider carries the risk of recovery, not the client.
If you are a partner, see partners and referrals and business and fleet.
Where to book a replacement car in Sydney
If your car is off the road and the at fault driver was in a rental, you can book a replacement now. The rate, the bond and every fee are shown on the car's page before payment. The bond equals the excess you choose. Paying by card carries a small surcharge; bank transfer and cash on the rental do not. You can book from a single day.
Minimum driver age is 20 on most cars, and 25 or 30 on some. Delivery is available across Sydney, including to repairers in Alexandria, Parramatta, Mascot and Artarmon.
Start with accident replacement car Sydney or browse the full fleet at accident replacement vehicles.
If you are not sure what you need, read how credit hire works and what you sign in credit hire paperwork.
Questions people ask
Who pays for my replacement car if the at fault driver was in a rental?
Do I claim against the rental company or the driver?
Can I still get a like-for-like car in this situation?
What if the rental company says the damage was pre-existing?
How long does the claim take when a rental car is involved?
Do I need to tell my own insurer?
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, the trading name of Australian Business Holdings Pty Ltd.
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