After a not-at-fault accident, one of the first things the at-fault insurer may do is offer to arrange a replacement vehicle through their preferred hire company. Many drivers accept this without knowing they have a choice.
You do have a choice. Here's what you need to know.
The short answer
Yes. Under Australian common law, you are entitled to choose your own replacement vehicle provider after a not-at-fault accident. The at-fault driver's insurer can recommend their preferred company, but you are not legally obligated to use them.
Why do insurers recommend their own hire company?
Insurers have contracts with preferred hire companies that supply vehicles at negotiated rates. Using their preferred provider keeps the insurer's costs lower.
The preferred company's primary commercial relationship is with the insurer — not with you. Their incentive is to fulfil the minimum the insurer is willing to pay, not to maximise your entitlement or provide the best service experience.
What happens if I choose my own provider?
If you engage an independent replacement vehicle provider:
- The hire company arranges your replacement vehicle directly with you
- The hire company contacts the at-fault insurer and seeks recovery of the reasonable hire costs on your behalf
- If the rate and duration are reasonable, the insurer is required to meet the hire costs
- You do not pay the hire charge upfront for eligible not-at-fault claims
Will the insurer push back?
Sometimes. Common tactics include claiming you had to use their provider, arguing the hire rate is too high, or attempting to limit the hire duration. None of these automatically succeed. If the hire was genuine, the rate was reasonable and the duration reflected your actual loss of use, the insurer's obligation exists regardless of whether they recommended the provider. Your hire company should manage these disputes on your behalf.
What to say to the at-fault insurer
If the at-fault insurer contacts you and recommends a hire company:
"Thank you, but I have chosen to arrange my own replacement vehicle with an independent provider. They will contact you directly to seek recovery of the reasonable hire costs."
You do not need to justify this decision. You do not need to ask permission.
How to choose a provider
When choosing an independent provider, look for:
- A company that provides replacement vehicles (not just referrals)
- Clear communication about the hire terms upfront — particularly what costs you're responsible for
- Experience dealing with insurers on behalf of not-at-fault drivers
- Melbourne-based so delivery is fast and logistics are straightforward
888 Car Hire is a Melbourne-based provider operating a real rental fleet. We arrange replacement vehicles for not-at-fault drivers and manage the insurer correspondence on your behalf.
If the at-fault driver was insured by a specific insurer, see our dedicated pages: RACV claim, AAMI claim, Budget Direct claim, Allianz claim, Youi claim.