One of the first decisions you face after a not-at-fault accident is whether to contact your own insurer or pursue the at-fault party directly. Most people default to calling their own insurer out of habit — it feels like the obvious thing to do. But if you weren't at fault, this decision matters more than most people realise, and the two options produce very different outcomes.
Here's an honest comparison.
Option 1: Claim on your own comprehensive insurance
How it works: You report the accident to your own insurer, pay your excess (typically $500–$1,500), and your insurer arranges repairs. If your policy includes a hire car benefit, they may provide a replacement vehicle — but only if that benefit is included in your specific policy, and usually for a limited period.
Your insurer then attempts to recover costs from the at-fault driver or their insurer in a process called subrogation. This happens on your insurer's timeline, not yours, and the excess you paid upfront is not refunded until recovery succeeds — if it does.
Downsides to consider:
- You pay the excess immediately, even though you did nothing wrong
- Your no-claims discount or bonus may be affected, even if you're ultimately proven not at fault
- Hire car entitlement depends entirely on your policy — many standard comprehensive policies have no hire car benefit, or limit it to 14–30 days
- Your insurer manages the recovery process at their own pace, with their own priorities
Option 2: Credit hire (pursuing the at-fault party directly)
How it works: You engage a credit hire company. They provide a replacement vehicle to you immediately, with no upfront payment where you are eligible. The hire company then manages all correspondence with the at-fault insurer and seeks to recover the hire costs directly from them.
Advantages:
- No excess to pay — you are not claiming on your own policy
- No impact on your no-claims discount or bonus
- Replacement car arranged quickly — same-day delivery is available across Melbourne metro
- The hire company manages all insurer correspondence on your behalf
- The hire period extends to cover the actual repair duration, not an arbitrary policy limit
Side-by-side comparison
Excess: Own insurer — you pay it upfront | Credit hire — no excess required
No-claims bonus: Own insurer — may be affected even if you're not at fault | Credit hire — not affected, claim is not on your policy
Hire car availability: Own insurer — only if your policy includes it, for a limited period | Credit hire — included for eligible claims, for the duration of your repairs
Who manages the at-fault insurer: Own insurer — your insurer, on their schedule | Credit hire — the hire company, acting in your interest
Speed: Own insurer — subject to claims assessment process | Credit hire — same-day delivery where eligible
Upfront cost: Own insurer — your excess | Credit hire — nil where eligible
When using your own insurer is the right choice
There are situations where going through your own insurer makes sense:
- The at-fault driver is uninsured and your policy includes uninsured driver protection — this is often the best path when no third-party insurer exists
- You were partially at fault — if liability is genuinely shared, credit hire for the full amount may not be available
- The damage is within or near your excess — if repairs cost less than your excess, it may not be worth claiming at all. Get a quote first.
- You cannot identify the other driver — if it was a hit-and-run and the driver cannot be traced, your own policy may be your only option
When credit hire is usually the better option
If the accident clearly wasn't your fault and the at-fault driver is insured, credit hire almost always produces a better outcome for the not-at-fault driver. You preserve your policy, avoid paying your excess, get a vehicle faster, and the hire company manages a process you shouldn't have to deal with in the first place.
The key question to ask yourself: "Did I cause this accident?" If the honest answer is no, the next call you make should probably be to a credit hire company rather than your own insurer.
To find out whether you're eligible for a not-at-fault replacement vehicle today, visit 888 Car Hire's not-at-fault hire page or call us on 0423 022 881. We'll walk you through your options clearly and honestly.