Rear-Ended but The Other Party Refuse to Cover The Cost of Rental Car

Lheychacha on 02/12/2018 - 11:33
Last edited 02/12/2018 - 12:05 by 1 other user

Hi guys, I was rear-ended by a national tool hiring company car few days ago.

While his car had barely any damage, my back window was completely smashed and a few big dents that I could not open it anymore. The bumper was also damage. I got it to a crash repair close to my house and they are awaiting for their claim number from his insurance company to be able to act further i.e. provide quote etc.

However, I need my car for work and other daily errands of course as my I work at a different site everyday. I requested the other party to communicate with his insurance to provide me a loan car or compensate the cost when I rent a car while my car is at the crash repair. He replied me that their insurance does not provide this I have to talk to my own insurance but I only have a 3rd party insurance. My insurance said that they are liable for this cost as it's them at fault.

I am kind of stuck as I know it is going to take a while for this to process. I surely do not want to go and rent a car out of my pocket and hope that they will pay me back. I also used uber to work so I also wonder would I be able to request compensation for it. What should I do or am I really entitled to have a loan car out of their expenses?

Any input is much appreciated!

Automotive

Comments

  • lovesabargain77 on 02/12/2018 - 11:41
    +19

    Have never used them but I see plenty of cars on the road from the following company

    https://www.right2drive.com.au/

    Seems that they can provide not at fault drivers with car hire and then they chase the at fault party's insurance for the cost.

    Of course there seems to be a lot of fine print but it might be worth checking out.

    • whooah1979 on 02/12/2018 - 11:46

      This or any other accident rental company that may provide a rental to the not at fault driver and make the at fault driver pay for not keeping safe distance.

      • [Deactivated] on 04/12/2018 - 08:06
        -4

        Where is the verb and/or object in your sentence? E.g. end it with "is good", "is pure farce".

      • [Deactivated] on 05/12/2018 - 20:41

        Too many grammatical errors to list BTW

    • MrHyde on 02/12/2018 - 11:46
      +3

      Check the post from another user recently saying that you may have to go to court on behalf of them if they are unable to get the other party to pay

      • TheMindsetTraveller on 03/12/2018 - 22:31

        From what I read when I had to go through the same process; the loan car provider CAN ask you to pay the cost of hiring IF the other person at fault refuses to pay. During the application process the loan car provider asked for my car registration papers (which I assume is to prove I owned the car and therefore have an asset should they decide to pursue ME!)

    • heychacha on 02/12/2018 - 12:36

      From what I can see in the other post, that is the thing that I want to avoid. As I’m just a student I can’t afford to cover either cost (car rental/legal fees). Those fine prints are too tricky for me and it seems too good to be true without forking out a cent and can just sit back and let them do the job. My insurance company suggested me to write a letter of demand. I’m not even sure where should i direct the letter to as I do not even know their insurance comapany. The only person I am communicating with is the manager of the person who hit me in the first place. I feel that is quite inefficient as I cannot talk to the insurance company directly which i guess is common? But they just don’t seem to make it helpful and I just don’t know the timeline of the events as well :/ I don’t know anyone personally know how to deal with this so I just don’t want to make the wrong steps and getting myself into debts or even bigger troubles if that make sense.

      Please pardon my English, English is not my first language.

      • Randxyz123 on 02/12/2018 - 12:51
        +1

        My insurance company suggested me to write a letter of demand. I’m not even sure where should i direct the letter to as I do not even know their insurance comapany.

        Yes, do this.

        http://www.lawaccess.nsw.gov.au/Pages/representing/lawassist… is a template.

        The only person I am communicating with is the manager of the person who hit me in the first place.

        Send it by registered (signature required) post to

        At fault party
        c/o Manager of at fault party
        Address

        Address the letter to their manager

      • ranap on 02/12/2018 - 13:50
        +10

        I have used right2drive once, when I was rear ended couple of months ago. They do make you sign heaps of documents, However they repeatedly mention that you would not be liable for any costs. In fact after handing over the replacement car key, they give themselves 2 working days to contact the At-fault insurer to accept cost of rental car cover. If they do not successfully get this done, they request you to return the car. The good part for me was that they were willing to do all the required paperwork with the At-Fault insurer, in the required legal formats, where I would have struggled to figure all of it by myself and spend days doing it.
        When I tried to talk to my insurer before going to Right2Drive they were not really very forthcoming on the right way to get a rental car replacement. My insurer only told me that my insurance product did not have rental car replacement & that I need to claim this directly against the other parties insurance. I had comprehensive with my insurer, yet no difference. I did not even bother with other parties insurer as I am not even their customer and they could give me the paperwork run around for a lifetime.
        Right2drive informed me of my rights for replacement car for demonstrated needs. They also managed the paperwork with the insurance company, at no cost to me. I had no complaints about their service.

      • CMH on 03/12/2018 - 09:13
        +1

        Your claim is against the driver.

        Unless you've been told to contact their insurer (and they should've given you a claim number and the company) that's who you send the letter of demand to.

        Also, not-at-fault car hire guys won't loan you a car until they have the at-fault party's insurance details.

      • YourITLink on 03/12/2018 - 11:42

        If you are in Sydney, check out www.replacemyride.com.au if you are not at fault in the accident they will provide you a loan car and they will chase the other parties insurance for payment.
        As long as you are the not at fault driver (which it would appear you are based on the details you have given) Replace My Ride can provide you with a loan whilst your car is repaired, check the website and have a chat to Greg who is the manager.

      • Zondor on 04/12/2018 - 08:51
        +1

        The only thing with right2drive is you need to ensure you are given an equivalent car to what you had. Otherwise it won't be covered.

      • theguyrules on 04/12/2018 - 11:46

        I've used a similar company to Right2Drive, had a hire car for almost 2 months, no problem at all and 0 cost out of my pocket.

    • Randxyz123 on 02/12/2018 - 12:46
      +4

      Don't do this. If the other party's insurance won't pay then you'll be stuck with a big bill. Most of them will be more than happy to cover a like for like from herz or similar.

      Contact the other party on Monday, ask them who their insurer is so you can follow up. Find out from the insurer who their prefered rental car company is. You are likely going to rent a car , pay for it yourself and then follow up the other party.

      I need my car for work and other daily errands of course as my I work at a different site every day.

      but I only have a 3rd party insurance.

      Too late now but if you 100% rely on your car to do your job, you really should have comprehensive insurance.

      • heychacha on 02/12/2018 - 13:24

        After this event I definitely will get a comprehensive insurance to save some future headaches!! They are required to tell me their insurer as in a normal car accident you would exchange that details anyway? What if the “manager” reply me since they are not going to pay for it so there is no need to provide me that info? As of what you suggested, if I go and rent a car for an estimate period of time, I’m still not 100% sure if I can get the cost covered :/
        Sorry for these silly questions as I really want to fight for my right but I cant seem to find a definite source to ask. Thank you all for replying to this thread btw :)

        • Randxyz123 on 02/12/2018 - 14:38
          +1

          What if the “manager” reply me since they are not going to pay for it so there is no need to provide me that info?

          I know you said English isn't your first language so I'm not trying to be rude here but I don't know what this means?

          If he is the person you have spoken to regarding the accident then continue to deal with him. Send a letter of demand and hopefully, they'll be helpful and just deal with it. It's his job as the at fault party's manager to do this stuff.

          What is your job? Can you borrow a car from work? Or get a ride from someone. I wouldn't be relying on them to pay for a hire car.

          Those goget/car share cars could be another option. They have cheaper prices for students

          • heychacha on 02/12/2018 - 14:48

            @Randxyz123: Find out from the insurer who their preferred rental car company is. You are likely going to rent a car , pay for it yourself and then follow up the other party.

            not sure how you guys do the quoting but I was replying to what you said here if that makes sense.
            I will take the advice to send them a letter of demand tomorrow and hopefully they will do something about it.
            I work for as a support worker and I was actually on my way to work when the accident took place. I am only a casual employee so I guess I would have to figure that out myself unfortunately. I am taking uber at the moment keeping all the receipts so I have the evidence.

        • chriise on 03/12/2018 - 20:49
          +3

          Even if you did have comp insurance it shouldn't be claimed against it. It's absolutely on the other party to cover it. I also used right2drive and had no problems at all - super easy - but then I assume the other party's insurer didn't kick up a fuss when right2drive approached them to cover the fees. Give R2D a call and ask them what happens if the insurer refuses. Can't hurt to try.

          • imurgod on 04/12/2018 - 14:08

            @chriise: Correction; if you have comprehensive, you should definitely claim against it. They handle the recovery for you and aside from limiting your exposure, it doesn't impact your premium or claims, they pay any court costs and also guarantee repairs for life.

            • chriise on 04/12/2018 - 14:36

              @imurgod: But the claim for damages is still being made against the 3rd party's insurer - your Comp is just doing it on your behalf.

              • imurgod on 04/12/2018 - 18:48

                @chriise: Correct.

                You pay for them to handle the claim and more importantly, the recovery, for you, so why wouldn't you let them do it on your behalf?

                There are numerous reasons why this is the wiser choice.

                To outline just a few:

                1. repairs are guaranteed
                2. all of the recovery action and costs (including legal) are borne by your insurer and recovered from the 3rd party insurer
                3. any dispute in liability is handled by people who are qualified to do so
                4. you don't have to spend months pursuing everyone (including 3rd parties who won't pay their excess)
                5. there could always be more to the claim than you're aware of
                6. police reports, CCTV, licence and rego searches - not available to the general public
                7. the 3rd party insurer has no interest in settling you quickly or for decent settlement - They'll always low-ball you

                I'd understand if you don't have comprehensive insurance, but if you do, there is no reason to not take advantage of the full suite of services on offer. After all, it's why you pay the premium, right?

  • whooah1979 on 02/12/2018 - 12:01
    +1

    I was rear-ended by a national tool hiring company car

    Contact their head office and advise them that you're more than happy to have them deal with this claim privately. Give them time to respond before you take it to social media.

    • heychacha on 02/12/2018 - 12:43

      I thought about it however I feel that its not completely in their control since it depends on the insurance company that they are using? I seriously assume a big company like that would have taken a pretty comprehensive insurance.

      • MITM on 02/12/2018 - 12:57
        -1

        Their Public Liability insurance would suffice.

        • Euphemistic on 02/12/2018 - 17:15
          +2

          They probably self insure for a certain value, like up to $20k or $50k so they can reduce their premiums (ie their excess is $20k or $50k). Many big companies will do this.

          OP may have to deal straight with the company, nit an insurer.

        • imurgod on 04/12/2018 - 10:25

          Public Liability has nothing to do with this at all

      • HighAndDry on 02/12/2018 - 13:48

        Nope. It's up to them to go deal with their insurance. And if they're not covered, they can still pay it out of pocket.

  • Diji1 on 02/12/2018 - 12:43
    +3

    You are entitled to recieve compensation for any damages resulting from the accident so yes, Uber and a rental vehicle should be paid for by the at fault driver's insurance and if not then they should be paying your wages if you lose them.

    But it sounds like you need a lawyer to negotiate for you. It's very foolish to negotiate with insurance companies unless you are a lawyer. Ensure that the lawyer agrees in writing that they will recover their costs from the insurance company.

    Think of it this way: you are suing the insurance company of the at fault driver. If they had no insurance you would be suing them.

    • imurgod on 04/12/2018 - 10:28

      DO NOT engage a lawyer at this stage unless you're willing to pay for the costs yourself.

      The insurer is likely to pay the damages but not the legals because you haven't given them reasonable opportunity to settle the claim.

      The PDS is the contract and it's not a very difficult one to understand.

      Call the 3rd party company, ask them to provide you with a claim number and/or send them your repair quote (you only need 1 by the way).

  • MITM on 02/12/2018 - 12:55

    Most people don't realise you're entitled to a hire car while you're car is off the road due to anothers fault.
    Out of a matter of necessity it would be normal to hire a car to continue with life whilst under repair.
    Claiming reimbursement from the 'at fault' driver would be a normal course of action and www.right2drive.com.au help facilitate through the 'at faults' insurance or directly if not insured.
    In fact selecting the hire car option in your own insurance policy is probably not necessary as your insurance company would claim against the 'at fault' anyway.
    A) Use right2drive if you're not at fault.
    B) Self hire if you're "at fault" and without a car.

    • chumlee on 02/12/2018 - 13:01

      Not true. You need to prove you require a vehicle for income purposes and with a damaged vehicle you are suffering a loss. Even then it's still a battle as insurance can fight it claiming you should have taken out insurance with free car hire etc

      • ozb10 on 02/12/2018 - 13:45
        +4

        Not true. I used one of those not at fault car rental when my car was a total loss. I only had third party back then, but I did not even need to contact my insurance, I gave the rental car company the claim details of the at fault driver and that was it.

        The rental period was about 2 weeks including weekends. They did not ask if I was working. The rental car company took care of dealing with the insurance company of the at fault driver for the rental fee.

        I actually recommend using those rental companise because if you hire a car yourself, you will need to chase up the hire car fee yourself.

      • HighAndDry on 02/12/2018 - 13:49

        You're both right. The case law differs between the states.

      • nith265 on 04/12/2018 - 11:17
        +1

        Even then it's still a battle as insurance can fight it claiming you should have taken out insurance with free car hire etc

        That's not how it works.

        Why not extend this principle further - their insurance company could claim OP should have taken out comprehensive insurance so that they could have avoided needing to trouble them at all…!

  • MITM on 02/12/2018 - 13:07
    -1

    Get 3 written quotes to fix your car.
    Get 3 rental car quotes for 2 weeks car hire.
    Pay $25 to a solicitor (Airtasker) to send a letter of demand to Accounts Payable of "Tool Hire Company".
    Include date and time and rego and driver of accident in the letter so they can follow up/confirm with employee.
    Expect a cheque for the (lowest) amount payable within 10 business days from the date of your letter.

    • whooah1979 on 02/12/2018 - 14:28

      Get 3 written quotes to fix your car.

      Is obtaining three quotes a legal requirement? Many motorist have busy lifestyles with work and family. It's unreasonable to expect the not at fault party to drive around looking for quotes. One quote from a preferred smash repairer should be enough.

      • MITM on 03/12/2018 - 23:02
        -2

        Yes, being inconvenienced by a rear ender is a PITA. But in order to get it fixed fast, offering the choice of 3 quotes gives the at fault no choice but to pay up pronto.
        If they pay the lowest figure but your preferred is the highest, then simply pay the difference. The name of the game is to get back on the road ASAP with little to no outlay.
        No it’s not a legal requirement, but obtaining 3 quotes is the standard MO for contracting any service.

      • imurgod on 04/12/2018 - 10:32
        +1

        Only 1 quote is required.

        The insurer will question it if the rates are outside industry standard, but generally, they'll just pay it.

  • Love a bargain on 02/12/2018 - 13:34
    +2

    It's not up to the tool hire company to decide what you're entitled to.

    & you should deal with their insurer directly

    • whooah1979 on 02/12/2018 - 14:32

      you should deal with their insurer directly

      This is bad advice for someone that neither have the experience with dealing with insurers that may bully them to take the lowest offer, nor the time to deal with endless calls.

      Get a professional to file a claim and show up if called to give evidence.

      • Love a bargain on 03/12/2018 - 19:13
        +2

        I only meant dealing with the insurer rather than the company itself as they are obviously trying to get out of paying for a hire car

  • Some Human on 02/12/2018 - 14:45
    +1

    When I switched to third party last year with Aami, they told me if I have an accident and I’m not at fault, they will give me a hire car and chase the at fault driver or their insurance company for the money.

  • Ocker on 02/12/2018 - 15:15

    My daughter was rear ended by some bimbo texting on her phone while driving back in January. The panel shop put me in touch with a car hire firm that specialised in providing cars to those not at fault. They delivered the car, we signed a couple of forms and that was it. Took 3 months for our car to be repaired and we have the other car the full time at no cost.

  • brendanm on 02/12/2018 - 19:14

    What is have done in the past is just hire a car (has to be similar to yours, can't get a Ferrari if you have a Hyundai van), then sent the bill to the insurer. They legally have to pay you, so all is sweet. Either that or involve your insurance.

  • pjcook on 03/12/2018 - 07:46
    -1

    Go through your insurance company, let them deal with it. I assume you have hire car through your policy so you will be all good.

    • Euphemistic on 03/12/2018 - 07:52

      Nice reading. OP only has TPP so the insurer won’t help

      • pjcook on 05/12/2018 - 06:31

        Ooops, my bad I admit I didn't read that far into the issue. I just assumed if the car was so vital that the OP would have had comprehensive cover with rental option ticked…

  • 343 on 03/12/2018 - 08:05
    +4

    Give these guys a call
    https://www.notmyfault.com.au
    I have tried them twice, great service.

  • Well Wasted on 03/12/2018 - 08:15
    -8

    dood… the only way you'll get a hire car paid for, is if it was covered under your insurance policy… then your insurance company would recoup the cost from the person at fault. why would you expect someone to provide you with free transport?

    • brendanm on 03/12/2018 - 14:27
      +1

      By law they have to. You have to be made whole by the other party, you are not responsible for the costs of a hire car if some goose isn't paying attention and crashes into you.

  • pcs1810 on 03/12/2018 - 09:10
    -1

    If it is "essential" for you to use another car whilst your car is off the road, you will be hiring a replacement vehicle regardless of cost - this will then result in a stronger case for reimbursement from the at fault drivers insurers.

    The mere fact you are undecided as to whether you will outlay the cost for the car unless you are guaranteed reimbursement - severely weakens your case that it is a necessary expense. Obviously you do have other options available to you (reschedule needs, share car, public transport, etc)

    The Third Party insurer'a obligation is to meet reasonable expenses - this cannot be pre-determined as to what is reasonable but is rather a matter of submitting costs after incurring and provide your reasoning for same. This will then be considered by the T/P insurer.

    A car not registered for business, and not fully covered by comprehensive insurance does not seem like a strong case for incurring hire car expenses to begin with - plus you are required at all times to mitigate your losses. There is no automatic entitlement.

    • heychacha on 03/12/2018 - 13:15

      That’s why I’m taking uber for longer shifts but it does add up and I’m a student. I am also required to work at few places for fairly short (30minutes-1 hour) all over the town back to back. It can break my bank or I will just have to give up these shifts. Some jobs I’m required to use my car to transport clients. Do I need to have a “strong case” given i have a job that requires me going from place to place?

  • [Deactivated] on 03/12/2018 - 10:19

    Sounds Strange
    It is irrelevant if the other parties insurance company does not cover rental cars.
    Because their cover is related to their entitlement to rent a car themselves.

    You the 3rd party the Renting of an equivalent vehicle for period is part of the repair cost

    When i made claims against a 3rd party the repairer just itemised an item (Replacement Rental) on the invoice that was sent to the other persons insurer.

    • Euphemistic on 05/12/2018 - 07:26

      As mentioned previously often these big companies ‘self insure’ for low value to save significantly on premiums. Effectively they might have a $20k or even $50k excess. It is in their interest to stuff you around and not pay if they think they can get out of it. Obviously in this case they shouldn’t be able to get out of it, but dealing with a big company often isn’t easy.

      Ask for the company insurance manager, not necessarily the local manger if you get no help.

  • shanesimmo on 03/12/2018 - 12:41
    +2

    HI,

    Agree with carlb. You are entitled to recover the cost of a rental car from the at fault driver. It is most likely their corporate insurance wont cover a rental car if their car is uanable to be driven but will cover any loss or damage that you incur including rental car costs. However they normally wouldn't provide the car to you - you need to organise and pay for it and then recover the costs from them - that is why companies like 'mot my fault, right to drive exist.

    • Well Wasted on 03/12/2018 - 14:10
      -1

      driving is a paid privilege… not a right.

      • whooah1979 on 03/12/2018 - 16:57

        Op have the right engage a vehicle rental company that specialises in accident rentals, rent their vehicle and get them to recover their fees from the party at fault.

  • [Deactivated] on 03/12/2018 - 16:43
    -5

    The tool hire company knows what they are talking about, they probably deal with this every week and probably have a dedicated fleet manager.

    My work has over 100 vehicles and we have about 1 at fault claim a month (sometimes very minor), we have never paid for the other driver to have a hire a car. We have had all manner of legal threats etc but no one has ever actually taken us to court.

    We also have have accidents where the other driver was at fault and no one has ever paid for us to have a hire car.

    • brendanm on 03/12/2018 - 18:26
      +6

      Just because you get away with it, doesn't make it legal. I've been payed out by an insurance company for hire car after my car was rear ended. Insurance companies do NOT pay for anything they don't have to.

      • [Deactivated] on 03/12/2018 - 19:34

        It's not me personally, it's my workplace, I am not the owner/manager/person making the decision or anything like that. I can also say most places with large fleets do the same thing (which would suggest it is legal).

        What does "legal" even mean in this context? This is not criminal law, it's civil, each case is different. If a person or company such as right2drive wanted to take us to court they can, but no one has - that would suggest it is "legal".

        • CMH on 03/12/2018 - 19:44
          +2

          You're just lucky nobody has taken you to court.

          And these not-at-fault guys generally don't rent you a car if the other party is "self-insured". It is possible that either nobody has bothered to take you on in court, or that these not-at-fault guys know you're too much trouble and decided not to.

          Wait for the day an insurance company with a hire-option client takes it out: I'm sure they will come for you.

          • [Deactivated] on 03/12/2018 - 20:20

            @CMH: No one has taken it to court because thier lawyer tells them the chance of success is quite low.

            We have dealt with hire car companies like this before.

            • MITM on 03/12/2018 - 23:12
              -1

              @[Deactivated]: Surely your public liability covers the claims including reimbursement for temporary vehicle hire ?

              • imurgod on 04/12/2018 - 10:39

                @MITM: Why would Public Liability pay for a motor accident? Public Liability policies have a full motor exclusion.

                @seano2101 Whilst your company hasn't paid in the past, you do legally have to pay hire car costs to a 3rd party if you're at fault. If it goes to court, they'll pay. There is precedence that goes back to around 2000 I think. If my memory serves, NRMA were brought into the action.

                • [Deactivated] on 04/12/2018 - 20:21

                  @imurgod: NRMA don't operate in WA so that precedence is most likely irrelevant. The advice from our lawyers and I have heard the same from other lawyers is that you don't get a rental car in WA.

    • nith265 on 04/12/2018 - 11:43

      The very business model of these 2 companies would seem to suggest otherwise:

      https://www.right2drive.com.au

      https://www.replacemyride.com.au

  • RevBargain on 03/12/2018 - 23:02

    My panel beater just gives us a hire car and then sorts it out with the insurance company. They've never had an issue with recovering costs… If you can pick your own place - find somewhere like that https://sheengroup.com.au

  • pistachio on 04/12/2018 - 00:56

    If Melbourne is your usual ground, try this panel beater.

    http://www.baysidesmashrepairs.com.au/

    When I had the very first car accident(not at fault) 4 years ago and was really stressed out and didn't know what to do with my and the other party's insurance company etc., they helped me through with everything including a rental car. It seemed they had a few their own rental cars.
    They even fixed dents not related to the accident (I think they felt sorry for me being a naive uni student back then) and I was really happy.

    Since then I didn't have to use them but I recommended them whenever my close ones had accidents.
    They were all happy with them too.

  • bargainbee on 04/12/2018 - 06:41
    -1

    When I was living in the UK, my car got hit, requiring repairs. Right in front of my house. Driver reported to her insurer and I was contacted by the insurer to organise repairs and a rental car. Had the rental car for the duration of 3 weeks my car was being repaired, I recall.

  • smartazz104 on 04/12/2018 - 07:31
    -1

    However, I need my car for work and other daily errands of course as my I work at a different site everyday

    So you don't have comprehensive cover because..?

    • whooah1979 on 04/12/2018 - 07:38

      Not every motorists may afford comprehensive insurance. TPP is something more economical for older or low market value vehicles.

      • smartazz104 on 04/12/2018 - 09:06

        I would have thought using your car for work like OP does, he could somehow expense the costs…

        • heychacha on 04/12/2018 - 20:45

          My car is pretty cheap,I got it for around $3k a year ago. I work quite casually during school period. My work only requires third party insurance for our vehicles.

    • Tuftsdude on 04/12/2018 - 11:10
      +1

      Username checks out.

  • mubd1234 on 04/12/2018 - 08:21

    If they have third party property damage insurance, it will pay for the rental car. It's a significant cost which at fault drivers are responsible for - if insurance didn't provide one, you might as well not have insurance!

    You can choose to go through a rental car agency, pay for the rental car yourself upfront, and submit the receipts to the at fault driver's insurer (you'll be out of pocket a few weeks, though).

    It is in the insurer's interest to make sure that you don't use Right2Drive or similar companies, because Right2Drive charge inflated rental fees because they know that the insurance has to pay for them. The only issue with Right2Drive (and similar) is if there's a dispute over fault, or it turns out the person at fault doesn't have insurance AND they are bankrupt or otherwise can't recover costs from them, you'll be liable for these charges.

    When I was in an accident (not at fault), the insurance company called me the next day telling me that I was eligible for a hire car.

    Mind you, I only know about the situation in NSW. It may well be different in other states.

    • whooah1979 on 04/12/2018 - 09:00

      pay for the rental car yourself upfront, and submit the receipts to the at fault driver's insurer (you'll be out of pocket a few weeks, though).

      The rental company may do this and op wouldn't even have to pay anything upfront.
      https://www.right2drive.com.au/faqs

      Under our agreement with you, you will not be liable for the rental costs provided you are not at-fault,

      • Tleyx on 04/12/2018 - 09:23

        That last line is the doozy, you are not at fault when the other party concedes to paying it or you get a judgement in court.

        So you need to be able to go to court.

        You can get a car for a week for two hundred bucks which is less than a day off work and you still might get that $200 without going to court as you are being reasonable and mitigating your losses.

        • whooah1979 on 04/12/2018 - 09:45

          I don't know the going rate for a daily driver, but I'm certain that none of our vehicles could be hired for $200 a week. The going rate for the cheapest on Carnextdoor is $100/day.

          • Tleyx on 04/12/2018 - 12:49

            @whooah1979: Car next door includes petrol. How is that reasonable to charge another driver your petrol that you were going to have anyway?

            Avis budget Europe car are much cheaper than $100 a day.

            If you don't mitigate your losses then that could be an argument for the other side not to pay

            • whooah1979 on 04/12/2018 - 12:59

              @Tleyx: It's like-for-like. If the not at fault driver is driving Yaris, then hire a Yaris. If they drive a 6l v8, then hire a v8.

              • Tleyx on 04/12/2018 - 13:08

                @whooah1979: How is petrol included like for like?

                • whooah1979 on 04/12/2018 - 13:14

                  @Tleyx: Petrol is cheap.

                  Avis budget Europe car are much cheaper than $100 a day.

                  The prices on Avis for a like-for-like vehicle that we drive is >$200/per.

        • nith265 on 04/12/2018 - 13:11

          So you need to be able to go to court.

          Only theoretically, just like any civil case. The actual line from faqs is:

          "..and in some cases, appearing in court.."

          I wonder how they handle it if they come to a negotiated settlement apportioning negligence say 70% / 30% - you'd have to then pay you're own percentage of their inflated hire car costs (I assume they're inflated..) and also their legal costs

          Seems a great service if someone rear ends you - maybe not so much if there's any dispute about who's to blame

          • CMH on 06/12/2018 - 01:35

            @nith265:

            Seems a great service if someone rear ends you - maybe not so much if there's any dispute about who's to blame

            They won't lend you a car if there's any dispute to who's liable.

      • mubd1234 on 04/12/2018 - 12:06

        When I refer to a "rental agency", I mean outfits like Avis, Hertz, Thrifty, etc - not Right2Drive and similar companies.

  • imurgod on 04/12/2018 - 10:20
    +1

    This is pretty simple.

    You're not automatically entitled to a hire car unless you have taken the hire car option on your own insurance policy.

    If liability is clear (and the other party is at fault), the at fault insurer will pay for the hire car, if it's in contention, they won't.

    • nith265 on 04/12/2018 - 10:51
      -1

      yep I think OP is confusing the 3rd party insurance option that some insurers have to give their own customers a hire car if they are not at fault

      OP has asked if their insurance has this option for the person hit - the answer is no because nobody offers that as an option, it simply doesnt exist!

      • imurgod on 04/12/2018 - 10:54

        Oh I get it now.

      • heychacha on 04/12/2018 - 20:49

        I wasn’t confused of what you said. I know hire car could be an extra options for some insurance policies but I was told by some people about they could cover the cost or arrange a loan car while my car is off the road. I do not have anyone around me knows well around these issues, hence why I put it out there to seek advice.

        • whooah1979 on 04/12/2018 - 21:01

          Paying for a rental vehicle when taking out a comprehensive insurance policy isn't required. This option is easy profit for the insurer.

          The not-at-fault driver may hire a rental vehicle from a "normal" rental company with an upfront cost, or a company that specialises in accident rentals at no cost subject their t&C.

        • nith265 on 05/12/2018 - 13:15

          I know hire car could be an extra options for some insurance policies

          This is an option for the insurance customer not for you

          ..they could cover the cost or arrange a loan car while my car is off the road

          YES they are obliged to compensate you for the reasonable costs involved in travelling while your car is out of action for a reasonable amount of time (hire car, uber, public transport even).

          You are confusing things by focusing only on the car hire.

          If you worked as carpenter and your tools were destroyed in the crash they would need to pay for new tools (or for you to hire them for a couple days while you got new ones).

          You are 100% not at fault – they have to pay all reasonable costs involved in fixing your car and for the costs incurred by not having a car.

  • nith265 on 04/12/2018 - 11:06
    +1

    No insurance company has a policy that says:

    “…in the event of an accident that’s you’re at fault we agree to pay for a hire car for the other party up to a maximum value of a day…”

    So when you asked they might even have answered truthfully!

    The Tool Hire company’s insurance covers the driver’s Legal liability - not just costs for car/property damage. It extends to all other reasonable costs that you will incur as a result of their negligence including hire car or uber costs.

    If you are sending them a letter of demand just use a simple, fair, reasonable calculation of how much a hire car would be. Allow say 6 weeks for the repair with a sentence that you will refund them any extra if the car is returned to you sooner.

    Make reference to www.right2drive.com.au in your initial communication with them and if they can’t settle with you to your satisfaction quickly (it could cost them a lot more if they get on board).

    Or just go with www.right2drive.com.au or equivalent. I’ve never used them but the comments here sound like it’s a pretty good option. 100% their fault so seems no risk to you and you get a car immediately.

  • mehraz on 04/12/2018 - 11:45

    Just sharing my own experience couple of years ago:
    Got rear ended. Received a claim number and hired a car through a common rental company.
    When the car was ready, I just sent the receipt of car hire to insurance company explaining why I needed to hire a car and received a bank cheque later on.
    I only had third party insurance at the time.

    • ankor on 05/12/2018 - 15:03

      If you can't pay the CC hold or cover those costs, those crash and bash hire car places are alright. But I don't see any other reason why they exist tbh.

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