Most drivers assume that after an accident, the hire car bill lands on their desk — regardless of who caused the crash. It's a reasonable assumption, but if you weren't at fault, it's almost certainly wrong. You may be entitled to a replacement vehicle with no upfront cost, and the expense may ultimately be recovered from the party who caused the collision.
Here's how it works.
The short answer: the at-fault driver (or their insurer) pays
Under Australian tort law, a person who negligently causes loss to another is responsible for compensating that loss. If someone rear-ended you at a set of lights and your car is now undriveable, the losses you've suffered — including the cost of a replacement vehicle while yours is repaired — are reasonably attributable to that driver.
This means the at-fault driver, or more commonly their insurer, may be liable for your hire car costs — not you.
This principle isn't new. It has been recognised in Australian courts and applied consistently in accident hire cases for decades. The driver who caused the accident caused the inconvenience. It's logical, and it's broadly supported by law.
How the cost recovery actually works
The mechanics are handled through a model called credit hire. Here's how the process typically unfolds:
- You contact a credit hire company like 888 Car Hire as soon as possible after the accident
- We assess your situation and, subject to eligibility, provide a replacement vehicle with no upfront payment from you
- We then seek to recover the reasonable hire costs directly from the at-fault insurer
- You aren't chasing anyone for money — that's our job
You drive. We manage the paperwork and correspondence with the insurer.
This model has been used in both Australia and the UK for many years. It exists precisely because not-at-fault drivers shouldn't have to fund their own transport while waiting for a claim to resolve.
What if the at-fault driver has insurance?
Most registered drivers in Australia carry at least third-party property insurance. If the at-fault driver has comprehensive cover, the process is relatively straightforward: we deal directly with their insurer, present the claim, and seek to recover the hire costs.
The insurer may attempt to negotiate the rate or the duration of the hire. That negotiation happens between us and them — not between you and anyone. You're largely insulated from that back-and-forth.
This is one of the main advantages of using a credit hire company rather than handling the claim yourself. Insurers are experienced at reducing payouts. Credit hire companies are experienced at recovering them.
What if the at-fault driver doesn't have insurance?
This complicates things considerably. The standard credit hire model relies on the existence of an insurer to recover costs from. Without one, recovery becomes a direct action against the individual driver — which is slower, less predictable, and not always successful if the driver has limited means.
That said, there may still be options depending on your circumstances:
- Your own comprehensive policy may include uninsured driver cover — worth checking your Product Disclosure Statement
- Direct action against the driver is legally possible, though the practical path depends on their financial position
- Other avenues may apply depending on the specific facts of your case
If the at-fault driver is uninsured, call us and describe the situation. We'll be honest with you about what's possible and point you in the right direction.
What you are still responsible for
A replacement vehicle under credit hire is still a rental agreement. During the hire period, you remain responsible for:
- Fuel — fill it as you found it
- Tolls and parking fines incurred during the hire
- Any damage caused during the hire that isn't attributable to the accident itself
- Any obligations set out in your rental agreement — read it before you drive
The not-at-fault arrangement covers the hire cost itself. It isn't a free pass on everything.
Why you shouldn't go through your own insurer for this
Many drivers instinctively reach for their own insurer after an accident — even when they weren't at fault. This is understandable, but it often works against you:
- Your insurer will typically charge your excess upfront, which you then have to wait to recover
- Making a claim — even a not-at-fault one — may affect your no-claims bonus or future premiums depending on your policy
- Your insurer recovers costs slowly through subrogation proceedings — you're waiting on their timeline, not yours
Using a credit hire company bypasses all of this. No excess, no impact on your policy (in most cases), and we pursue recovery independently.
What to do right now
If you've been in an accident that wasn't your fault and you need a replacement vehicle, the sooner you call, the sooner you're back on the road.
Call 888 Car Hire on 0423 022 881. We cover all Melbourne metro suburbs and offer same-day delivery in most cases. We'll assess your situation, confirm eligibility, and have a vehicle to you as quickly as possible — with no upfront charge for eligible claims.
You can also check your eligibility and learn more at our not-at-fault car hire Melbourne page.