How taxi credit hire works.
A replacement taxi with the hire charges deferred. Read the agreement before you decide.
Who pays?
The provider seeks to recover reasonable hire charges from the responsible party or insurer. Recovery is not guaranteed. Depending on the agreement and circumstances, you could be responsible for charges.
What do you need to do?
Give accurate information, provide reasonable evidence, follow the hire terms and tell us when your need for the vehicle changes. We explain the proposed agreement before hire starts.
Your other options
Check your own policy and any offer from the other driver’s insurer. A suitable courtesy car or other available vehicle may affect the need for credit hire. Follow your insurer’s accident notification requirements.
Read the details
Eligibility, costs and hire responsibilities+
What is taxi credit hire?
Credit hire means that payment of the vehicle’s hire charges is deferred under an agreement. The hire provider seeks to recover reasonable charges from the party responsible for the accident or their insurer. It is a separate arrangement from claiming a courtesy car under your own insurance policy.
Who may qualify?
We assess the accident circumstances, who appears responsible, whether you genuinely need a replacement and whether a suitable vehicle can be arranged. Having another suitable vehicle available, or being able to continue your usual taxi work in your own vehicle, can affect the assessment. Acceptance is not automatic.
Will I pay anything upfront?
Credit hire is intended to defer hire charges rather than require upfront payment of the daily hire cost. The specific agreement governs any deposit, excess, additional costs and responsibility for charges. We explain the proposed terms before you decide whether to proceed.
Could I be responsible for charges?
Potentially, depending on the agreement and circumstances. Recovery is not guaranteed. Liability disputes, disputed hire duration or rates, inaccurate information or failure to meet agreement obligations may affect the position. Ask how unrecovered charges are handled and what protection, if any, applies to your agreement.
Your responsibilities during hire
- Provide accurate accident and vehicle information.
- Cooperate with reasonable evidence and recovery requests.
- Keep us informed about repairs, settlement and changes to your need for hire.
- Follow the vehicle’s use, insurance and return conditions.
- Take reasonable steps to avoid unnecessary costs.
Credit hire, courtesy car or ordinary rental?
| Option | How it usually works | What to check |
|---|---|---|
| Credit hire | Charges deferred; recovery sought from the responsible party. | Liability, obligations, suitability and hire period. |
| Courtesy car | Provided under policy or repair arrangements. | Cover, availability and taxi licensing suitability. |
| Ordinary rental | You pay agreed rental charges. | Taxi use permission, licensing and insurance. |
You have options
Depending on the circumstances, alternatives may include using your own insurance or dealing directly with the other driver’s insurer. Check what each option offers and its conditions. You should still comply with your own insurer’s accident notification requirements.
Independent information
Read the Financial Ombudsman’s explanation of credit hire and credit repair. This is general information; your own agreement determines your contractual responsibilities.