Credit hire when the at-fault driver is from interstate
If an interstate driver hits you in NSW, the crash location and the other driver's insurer determine who pays for your replacement car, not the number plate. You can still claim credit hire, but the process often involves an interstate insurer and extra delays.
This guide explains which state's rules apply, how to deal with an interstate insurer, and how to get a like-for-like replacement car while yours is repaired.
Key takeaways
- The law of the state where the accident occurred applies, so NSW rules govern your claim even if the at-fault driver is from interstate.
- You are entitled to a like-for-like replacement car while yours is repaired, regardless of the other driver's insurer.
- Interstate insurers may cause delays, but a credit hire provider can manage the process and recover costs from them.
- Collect all necessary information at the scene, including the other driver's insurer and policy number, to speed up your claim.
- If the insurer refuses to engage, you can escalate to AFCA or involve a solicitor, but you are not personally liable for the hire costs under a credit hire agreement.
- Why the crash location matters more than the plates
- Which insurer you actually deal with
- Interstate insurers and NSW hire protocols
- The extra delay when liability sits in another state
- What to collect at the scene from an interstate driver
- Hire car delivery while the other driver goes home
- If the interstate insurer refuses to engage
- When to hand it to a solicitor
- Frequently asked questions
Why the crash location matters more than the plates
When you are hit by a car registered in Victoria or Queensland, your first instinct might be to worry about the other driver's interstate plates. In fact, the location of the crash is what determines which legal rules apply. Under Australian law, the claim is generally governed by the law of the state or territory where the accident occurred. So if you are hit on the Harbour Bridge, the M4 at Parramatta, or Military Road in Neutral Bay, NSW law applies, regardless of where the other car is from.
This means the other driver's insurer must handle your claim under NSW rules, including the requirement to pay for a like-for-like replacement car if you are not at fault. The insurer cannot avoid its obligations simply because it is based in another state. However, the practical process can be slower because the insurer may not have a local presence or familiar processes for NSW credit hire.
If you are not at fault, you are entitled to be put back in the position you were in before the crash. That includes having a comparable car to drive while yours is repaired. For prestige and performance cars, that means a similar make, model, and specification. Our guide to like-for-like replacement explains what that means in practice.
Knowing that NSW law applies gives you a strong starting point. It means you can insist on your rights under the Motor Accidents Injuries Act 2017 and relevant case law, such as Arsalan v Rixon, which confirmed that credit hire is a legitimate way to recover the cost of a replacement car from an at-fault driver's insurer.
Which insurer you actually deal with
If the at-fault driver is from interstate, you will likely be dealing with an insurer you may not have heard of. For example, a driver from Victoria might be insured with RACV, while a Queensland driver might be with RACQ or Suncorp. These insurers operate under different brands but are required to handle claims in accordance with NSW law when the accident happens here.
The insurer you deal with is the one that covers the at-fault driver. That could be a large national insurer like NRMA, Allianz, or IAG, or a smaller state-based one. Regardless, your credit hire provider will correspond with that insurer to arrange payment for your replacement car.
It is important to note that you are not the insurer's customer. You are the third-party claimant. The insurer's obligation is to indemnify its own policyholder for damages caused to you, including the reasonable cost of a replacement car. This means you should not accept a lower-standard hire car just because the insurer offers one. You are entitled to a like-for-like vehicle.
If you need a prestige replacement car in Sydney, you can book through our partner Drive Tribe, which specialises in not-at-fault replacement vehicles for prestige and performance cars. They handle the credit hire paperwork and liaise with the interstate insurer on your behalf.
Remember that the insurer may try to direct you to their preferred hire car company, which may not have the same standard of vehicle. You are not obliged to use their provider. You can choose your own, as long as the cost is reasonable and comparable to your own car.
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.
Interstate insurers and NSW hire protocols
Interstate insurers are generally familiar with NSW credit hire protocols, but they may apply them differently. In NSW, the Motor Accidents Injuries Act 2017 and the Motor Accident Guidelines set out the requirements for insurers to respond to claims, including those for replacement cars. However, insurers from other states may not have the same internal processes, leading to delays.
For example, a Victorian insurer might require more documentation before approving a credit hire, such as a statement from you, photos of the damage, and a police report. They might also be slower to accept liability if their policyholder disputes the version of events. This is where a specialist credit hire provider can help by managing the paperwork and following up.
It is also worth noting that some interstate insurers have reciprocal arrangements with NSW insurers, which can speed things up. But this is not guaranteed. The key is to provide all necessary information promptly and to keep a record of all communications.
If the insurer refuses to engage, you may need to escalate the matter. Our article on when an insurer disputes a credit hire claim covers the steps you can take. In many cases, a letter of demand from a solicitor can prompt action.
For a general overview of how insurers pay for hire, see our guide on how the at-fault insurer pays for hire.
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 claimThe extra delay when liability sits in another state
When the at-fault driver is from interstate, liability can take longer to confirm. The insurer may need to contact their policyholder, who may have returned home, and obtain a statement. This can add days or even weeks to the process. In the meantime, you are without your car.
This is where credit hire is particularly valuable. You can get a replacement car immediately, without waiting for the insurer to accept liability. The credit hire company takes on the risk of recovering the cost from the insurer later. This means you are not left stranded while the insurer investigates.
However, the extra delay can also affect the length of your hire. If liability is not accepted for a while, the hire period may be longer, and the insurer may question the duration. It is important to document why the repair took as long as it did. For example, if parts had to be ordered from Germany for your Porsche, that is a legitimate reason for delay.
Our guide on the credit hire timeline explains the typical stages and how to avoid unnecessary delays. If you are in a business fleet, you may also want to read about credit hire for business and fleet cars to understand how to keep your operations running.
In some cases, the interstate insurer may accept liability quickly, but the repair itself takes time due to parts availability. That is not something the insurer can dispute, as long as the repairer is reputable and the delays are documented.
What to collect at the scene from an interstate driver
At the scene of the accident, it is crucial to collect as much information as possible from the interstate driver. This will help your credit hire provider and the insurer process your claim smoothly. Here is a checklist:
- Full name, address, and contact number (including mobile).
- Their insurer's name and policy number.
- Their vehicle registration number and state of registration.
- Photos of their licence (front and back).
- Photos of the damage to both cars, including close-ups and wide shots.
- The location, time, and road conditions.
- Contact details of any witnesses.
If the other driver is uncooperative or leaves the scene, note down as much as you can, including the make, model, and colour of their car. Call the police if they leave without exchanging details. In NSW, you must report a crash to the police if anyone is injured or if the other driver fails to stop.
It is also a good idea to take a photo of their car's number plate to confirm the state. This will help your provider identify the correct insurer.
If you are unsure what to do, our first 24 hours guide walks you through the steps. For a broader overview, see what to do after a car accident not at fault.
Hire car delivery while the other driver goes home
One of the practical challenges when the at-fault driver is from interstate is that they may return home before your claim is settled. This can complicate communication, as the insurer may need to reach them for a statement or to confirm details. However, it does not affect your right to a replacement car.
Your credit hire provider can arrange for a replacement car to be delivered to you, often within hours of the crash. This is especially useful if your car is not drivable. For prestige and performance cars, delivery can be arranged to your home or workplace in suburbs like Mosman, Double Bay, or Parramatta.
For example, if you drive a BMW M3 Competition, you might be provided with a similar performance sedan. Here is a car that could be arranged:
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...
If you drive an SUV like a Porsche Macan GTS, a comparable SUV would be arranged:
Porsche Macan GTS 2024
The Porsche Macan GTS is the driver's Macan: a twin-turbo V6, lowered sports suspension and the sharpest steering in its class. It is a practical five-seat SUV that drives like a...
For larger families or fleets, a seven-seat SUV like the Audi Q7 might be suitable:
Audi Q7 Quattro
Elevate your family or executive travel with the 2021 Audi Q7 45 TDI Quattro. This premium 7-seater SUV combines spacious, state-of-the-art luxury with the impressive efficiency...
These are examples of the types of vehicles available through our partner Drive Tribe. They deliver to Sydney metro and surrounding areas, and handle the credit hire agreement with the at-fault insurer.
While the other driver goes home, you can continue your daily life with minimal disruption. Just remember to keep all receipts for fuel and tolls, as these may be recoverable.
If the interstate insurer refuses to engage
It is not uncommon for an interstate insurer to be slow to respond or to refuse to engage with a credit hire claim. They may argue that the hire car is not necessary, or that the rate is too high. In such cases, you have options.
First, ensure that your credit hire provider has sent a formal letter of demand with all supporting documents. This should include the police report, photos, and a statement from you. If the insurer still refuses, you can escalate the matter to the insurer's internal dispute resolution team. If that fails, you can take the complaint to the Australian Financial Complaints Authority (AFCA). AFCA can make binding decisions on insurers, but it can take time.
Alternatively, you can engage a solicitor to pursue the claim through the courts. Many credit hire companies work with solicitors who specialise in recovery. The threat of legal action often brings insurers to the table.
Our article on insurer disputes hire car claim provides more detail. Also, see the Drive Tribe page on common reasons an insurer disputes a hire car claim.
Remember, you are not liable for the hire car costs if you have a valid credit hire agreement and you were not at fault. The credit hire company assumes that risk. So you can drive your replacement car with peace of mind.
When to hand it to a solicitor
Most credit hire claims are settled without legal action, but there are times when a solicitor should be involved. If the insurer denies liability outright, or if they make a low offer that does not cover the hire car costs, a solicitor can help you negotiate or litigate.
Also, if you have suffered injuries, you should speak to a personal injury solicitor. The credit hire claim is separate from any injury claim, but they can be pursued together. A solicitor can also help if the at-fault driver is uninsured or cannot be identified.
In NSW, the Motor Accidents Injuries Act 2017 has specific requirements for claims, and a solicitor can ensure you comply. They can also advise on the limitation periods, which are generally three years from the date of the accident for property damage, but can be shorter for other claims.
If you are a fleet manager, you may have legal advisors or insurers who can assist. Our partners and referrals page lists professionals we work with.
Before engaging a solicitor, check if your credit hire agreement includes legal representation. Many do, at no extra cost to you. The credit hire company will typically handle the recovery process, including instructing solicitors if necessary.
For more on the legal framework, see our not at fault explained page.
Frequently asked questions
Does an interstate insurer have to pay for my hire car in NSW?
Yes, if you are not at fault and the accident happened in NSW, the at-fault driver's insurer must pay for a reasonable replacement car. This is required under NSW law, regardless of where the insurer is based.
What if the other driver has already left NSW?
Their departure does not affect your claim. The insurer can still be contacted, and your credit hire provider will handle communication. You may need to provide a statement and evidence.
Which state's rules apply to my claim?
The law of the state where the accident occurred applies. So if you crashed in NSW, NSW rules apply, even if the other driver is from Victoria or Queensland.
Can I choose my own replacement car?
You can choose a like-for-like replacement car, but it should be comparable to your own car. Your credit hire provider can help you select an appropriate vehicle.
How long does it take to get a replacement car?
In many cases, a replacement car can be delivered within 24 hours of your claim being approved. However, if the insurer delays, it may take longer.
What if the interstate insurer refuses to pay?
If the insurer refuses, your credit hire provider can escalate the matter, potentially through AFCA or the courts. You are not liable for the costs if you have a valid credit hire agreement.
Questions people ask
Does an interstate insurer have to pay for my hire car in NSW?
What if the other driver has already left NSW?
Which state's rules apply to my claim?
Can I choose my own replacement car?
How long does it take to get a replacement car?
What if the interstate insurer refuses to pay?
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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