Not-at-Fault Hire Car: Your Rights After a Crash

When someone else causes the crash, being without a car for weeks can hurt more than the dent. The good news is that a not-at-fault driver can often get a replacement car while theirs is repaired. Here's where that right comes from, what "reasonable" means, and what to check before you sign anything.

Where the right to a hire car comes from

If another driver negligently damages your car, you can generally claim your reasonable losses from them, which in practice means from their insurer (here's whose insurance to call). Losing the use of your car is one of those losses. In 2021 the High Court of Australia confirmed in Arsalan v Rixon that a not-at-fault driver can recover the reasonable cost of hiring a replacement car while theirs is off the road.

The key word is reasonable. The court looked at whether a cheaper car would have met the driver's actual needs. So you can't count on a like-for-like prestige car just because yours is one; the hire should match what you genuinely need the car for.

Check your own policy too

Some comprehensive policies include a hire car after a not-at-fault accident, and Moneysmart lists car hire among the extras some insurers offer. Read your PDS for the conditions. Policy hire car benefits can have limits on how many days you get or what kind of car, so compare that with what you could claim from the at-fault driver's insurer. Not sure what your cover includes? See comprehensive vs third party cover, and check whether an excess applies. Be wary of dealer "add-on" policies too, which Moneysmart warns can be hard to claim on.

What you'll usually need

The other driver's name, address, phone, rego and insurer.
Photos of the damage and the scene, plus any witness details.
Your claim number, and a rough idea of how long the claim may take.
A sense of what you use the car for: work, school runs, caring for family. It helps show why you need a replacement.

Before you sign a hire agreement

Replacement cars after a not-at-fault crash are often supplied on credit: the hire company provides the car and then claims the cost from the at-fault driver's insurer. That can work well, but read the agreement first and ask:

Who pays if the other insurer disputes fault, or disputes the hire cost?
How long can I keep the car, and what happens when my repair is finished?
Is there an excess or damage liability on the hire car itself?
Are there kilometre limits, fuel rules or restrictions on who can drive it?

If any answer is unclear, get it in writing before you take the keys. Services you pay for also come with consumer guarantees, which the ACCC explains.

Where we come in

At SS Automotive, organising a replacement car is part of how we manage not-at-fault claims. The car is arranged through an authorised rental company and billed to the at-fault driver's insurer. Once the claim paperwork is finalised and you drop your car off, you get it straight away, and fuel, tolls and any fines while you have it are your responsibility. If you weren't at fault and have a claim number, we can organise a replacement car where you're eligible, arrange a tow (24/7) if your car can't be driven, deal with the insurer and repair your car at our Dandenong workshop, including paint in our own spray booth. See how our not-at-fault accident claims work, or what's involved in our smash repairs. A crash can also damage parts you can't see, so the same team can check your brakes and suspension and wheels and tyres while the car is with us.

Common questions

Will I get the same type of car as mine?

Not necessarily. What counts is a reasonable replacement for how you actually use your car. A family that needs seven seats has a different case from a single commuter.

How long can I keep the hire car?

Generally for as long as your car is reasonably off the road being assessed and repaired. Delays you cause yourself, such as not booking the repair, may not be covered.

What if fault is disputed?

Then the at-fault insurer may not accept the hire cost until fault is settled. This is exactly why you should check the agreement for who pays in that situation before you sign. If an insurer's handling stalls, AFCA can look at complaints.

Related help

Accident help at SS Automotive

More guides from our blog

Official resources

For the whole claim process in one place, read our guide to insurance claims after a crash in Victoria.

Not-at-Fault Hire Car: Can You Get a Replacement Car After a Crash?