Insurance cover on Courtesy Hire Car

[Ed Gasket]

After a no-fault accident, my car will shortly be going into the garage for a repair which is being arranged and paid for by the third party's insurer. They have arranged for me to have a hire car while mine is being repaired. All good so far. However the hire car company are saying that they, the hire company, insure their hire car for any damage to the car but not for damage or injury to any other car or person. They say this will be covered by my own insurance under a standard clause that all insurance policies have??

I have checked the wording of my policy with Elephant insurance very carefully and I do not see any mention of covering a hire car at all; in fact it specifically excludes it unless Elephant themselves have arranged the repair and supply the car which is not the case here.

Is the hire car company talking nonsense? I don't want to risk driving around without third party cover on the vehicle? Can the hire car company legally hire the car to me without making sure it is covered for third-party liabilty as the Road Traffic Act requires? Thanks in advance for advice, Ed

[vusys1]

yes they are, as most if not all insurance companys do not cover hire cars under the third party driving extension (it will say this on your certificate).

 

If the TP insurers are providing the car it should also be down to the them to pay for the insurance either by paying the hire company directly or you if you have had to arrange cover.

 

get straight back on the phone

[Ed Gasket]

I am due to get the hire car on Monday. I will get onto the third party insurers and see what they say about insurance cover on the hire car. I have emailed Elephant but had no reply. I prefer to get a written reply if possible otherwise they can deny what was said in the event of a claim but as time is running out, I may have no option.

When I was told I'd get a hire car I presumed it would be just like walking in off the street and hiring one; not that my own insurance would be expected to cover it. I find it most strange !

[INSURANCEGUY]

Hi,

 

is the hire coming from Enterprise? If so, most insurers agree rates with them, which include insurance. Who are the insurer?

[Ed Gasket]

The hire car is being supplied by Enterprise and has been arranged by NIG, the insurance company of the third party who are paying for repairs to my car. My own insureres are Elephant who don't appear to cover the hire car in the way that the girl at Enterprise said they would i.e. for any third party claims.

[Ed Gasket]

Just spoke to NIG but couldn't get any sense out of the girl; just given the run around. First she says I am covered by their blanket insurance under my own insurance whatever that means. When I asked them for a letter confirming I would be insured on the hire car, she suggested I phoned Enterprise again as they should be insuring it ??

[patdavies]

yes they are, as most if not all insurance companys do not cover hire cars under the third party driving extension (it will say this on your certificate).

 

I would have said that most do.. mine states "...owned by you or hired under a hire purchase agreement"

[Ed Gasket]

"hired under a hire purchase agreement" means something else (a car that you are buying on a loan); its not referring to the hire car that I would be getting for a week or so while mine is being repaired.

[patdavies]

"hired under a hire purchase agreement" means something else (a car that you are buying on a loan); its not referring to the hire car that I would be getting for a week or so while mine is being repaired.

 

Exactly - so you would be covered for third Party Risks under the DOC part of you certificate for a hire car.

[Ed Gasket]

Can you explain that a bit more Pat; you've lost me there. My own insurance certificate only covers my own car and a replacement if supplied by an Elephant Insurance approved repairer which is not the case here.

[vusys1]

only prob is if you use the TPO extension and you have an accident your ncd will be affected. Why should you take that chance when the other insurer should pay for comprehensive cover via Enterprise

[Ed Gasket]

As far as I can see, I don't have a TPO extension anyway; that is my problem.

[vusys1]

TPO extension usually withheld due to a certain occupation or under 25.

 

Id get back onto enterprise and let them know that your insurance will not cover their hire car and explain you want fully comp cover and NIG are paying.

[Ed Gasket]

Enterprise are still saying my insurance will cover liability to third parties on the courtesy hire car as this is standard on all insurance policies while your own vehicle is in for repair. They've never had an accident or needed to make a claim in two years apparently ! I'm just going round in circles.

Do you think Enterprise would be liable as the car owner if something happened and it turned out they were wrong about my own insurance covering me ? Surely thay have a duty of care to make sure the car is insured as the law requires before letting it out on a hire? or is that down to the driver?

[INSURANCEGUY]

I would say that they will have a duty to ensure valid insurance, but most of that duty would be put to the driver by our wonderful justice system!

 

I have an idea, ring NIG, tell them that you have now spent days on this and if they dont get it sort by, say lunchtime, you will be accepting a hire vehicle from a credit hire company... cough... accident exchange... drive assist, helphire.... these cars will cost them twice as much as the one they can get from enterprise, but the hire company will insure it- now I am strongly against using credit hire companies such as these and dont recommend accepting the risks associated with doing so, but that is just my opinion, i do however, say with 99% confidence, that this will shift their backsides into gear!

[vusys1]

Enterprise are still saying my insurance will cover liability to third parties on the courtesy hire car as this is standard on all insurance policies while your own vehicle is in for repair. They've never had an accident or needed to make a claim in two years apparently ! I'm just going round in circles.

Do you think Enterprise would be liable as the car owner if something happened and it turned out they were wrong about my own insurance covering me ? Surely thay have a duty of care to make sure the car is insured as the law requires before letting it out on a hire? or is that down to the driver?

 

 

your insurance would only cover YOU to drive a courtesy if YOUR insurance company were arranging the repairs at one of THEIR recommended repairers,but as its it NIG who are repairing it and they are giving you the courtesy car YOUR insurance will not want anything to do with it. Time to start complaining, they are willling to provide a car,but no insurance to drive it.

[Ed Gasket]

UPDATE: I gave up trying to sort this out on the phone as everyone was saying something different and no-one was prepared to put it in writing for me.

Today my wife collected the hire car and the hire car company agreed that my insurance did not cover it hence we have had to take out temporary cover on the hire car for 2 weeks at a cost of £32. I should be able to claim this back off the third-party insurance company as their own hire car company agreed we needed it. Whatever the outcome, for the sake of £32, its better to be safe than sorry I think. It does seem most peculiar though for a hire car company to expect the borrower to insure it themselves !

[vusys1]

tells you something when no one wanted to put it in writing;)