car insurance and the little known world of credit hire companies /

Published at 2016-03-28 10:00:20

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A driver who did nothing wrong found herself drawn into a legal action over the £4000 hire of a courtesy vehicleWhen another driver hit Jane Ashdown’s car she was given a temporary replacement vehicle with gratifying speed. The reason for this alacrity became clear when she discovered that the company which organised the three-and-a-half week rental was demanding £4216 from the third-party insurer.
Now Ashdown* has been drawn into a legal action involving the insurer of the car she was hit by and the company which arranged her hire car. The insurer refused to pay and to Ashdown’s horror, hire company Claimfast is taking it to court in her name to recover the money. The case shines a light on the poorly understood area of credit hire companies (CHCs) which acquire caused controversy within the insurance industry.
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Source: theguardian.com