Hire Car Accident (not at Fault) and Insurance Trap
What is a Credit Hire Vehicle?
Roads are often congested especially in the office and school hours due to huge traffic flow, pedestrians, and the road jams. Everyone has shortage of time due to their busiest schedules; so, when they try to reach their destination timely, they rush on roads. This causes not at fault accidents. If you are the person who met such an accident, then you can apply for a temporary replacement vehicle until you do not have access to your own vehicle. The accidents are reported to the agencies who provide services to hire vehicles and these companies then collect the money from the insurance companies on your behalf.
This all sounds very good but it is intimidating, especially if you are the one who is careless in paying attention to the documentation. The Credit Hire Vehicles are easily available and often it is mentioned that credit hire will not charge you a single penny or you will be charged with application fees that will be refunded sooner the company will get the insurance money. This whole process also requires legal contract duly signed by you and the credit hire company. Thus, you are the one who becomes legally bound for court hearings until the matter isn’t over.
The Insurance Traps
The drivers are caught in between if the insurance companies deny paying the repair cost or if the charges increase from predicted cost. The drivers are then forced to pay the money to the credit hire firms. The matter goes to the court who penalizes drivers for not paying the credit hire firms, they take back the vehicles and impose legal bills on the drivers.
The credit firms are actually supposed to charge insurers of the driver for all these costs, but third-party management gets in direct conflict with the insurance companies due to the difference in repair charges, interest rate, or policy. The third parties sometimes recover some portion of the amount from the insurers otherwise they make drivers pay all money because it was the driver who hired a vehicle from them, not the insurers. If have signed such a contract, then for sure you will be bound to pay the amount to the credit hire firm due to the credit agreement. Drivers say they could have hired a vehicle from street rentals at much cheaper rates, but they didn’t know they will be trapped like this later. Most often, the repair charges increase the cost of the vehicle.
Precautions of Signing Agreement with Car Hire Companies
It is better to be safe than sorry. All you should do is to compare the cost of credit hire and street rental hire before signing the agreements. You should also a give a look to the installments you or your insurer will be supposed to pay to the credit hire by adding future interest rates into as the interest rates can increase the cost of installments by making you suffer more financial. You should also consider some legal advisor who can dig the details of the matter and guide you better about your next move otherwise your wrong decision can make you sign legal documents later court orders where you will be bound to pay the repair charges to the credit hire firms from your pocket.
Roads are often congested especially in the office and school hours due to huge traffic flow, pedestrians, and the road jams. Everyone has shortage of time due to their busiest schedules; so, when they try to reach their destination timely, they rush on roads. This causes not at fault accidents. If you are the person who met such an accident, then you can apply for a temporary replacement vehicle until you do not have access to your own vehicle. The accidents are reported to the agencies who provide services to hire vehicles and these companies then collect the money from the insurance companies on your behalf.
This all sounds very good but it is intimidating, especially if you are the one who is careless in paying attention to the documentation. The Credit Hire Vehicles are easily available and often it is mentioned that credit hire will not charge you a single penny or you will be charged with application fees that will be refunded sooner the company will get the insurance money. This whole process also requires legal contract duly signed by you and the credit hire company. Thus, you are the one who becomes legally bound for court hearings until the matter isn’t over.
The Insurance Traps
The drivers are caught in between if the insurance companies deny paying the repair cost or if the charges increase from predicted cost. The drivers are then forced to pay the money to the credit hire firms. The matter goes to the court who penalizes drivers for not paying the credit hire firms, they take back the vehicles and impose legal bills on the drivers.
The credit firms are actually supposed to charge insurers of the driver for all these costs, but third-party management gets in direct conflict with the insurance companies due to the difference in repair charges, interest rate, or policy. The third parties sometimes recover some portion of the amount from the insurers otherwise they make drivers pay all money because it was the driver who hired a vehicle from them, not the insurers. If have signed such a contract, then for sure you will be bound to pay the amount to the credit hire firm due to the credit agreement. Drivers say they could have hired a vehicle from street rentals at much cheaper rates, but they didn’t know they will be trapped like this later. Most often, the repair charges increase the cost of the vehicle.
Precautions of Signing Agreement with Car Hire Companies
It is better to be safe than sorry. All you should do is to compare the cost of credit hire and street rental hire before signing the agreements. You should also a give a look to the installments you or your insurer will be supposed to pay to the credit hire by adding future interest rates into as the interest rates can increase the cost of installments by making you suffer more financial. You should also consider some legal advisor who can dig the details of the matter and guide you better about your next move otherwise your wrong decision can make you sign legal documents later court orders where you will be bound to pay the repair charges to the credit hire firms from your pocket.
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