Legal Update: Interesting Judgement on Replacement Hire Car Case

An important judgment was handed down last week at Nottingham Crown Court involving which potentially has significant implications for the insurance industry.

The case centres on a car accident in 2016 and the claimant had hired a replacement vehicle for two years and nine months. The cost for this ran into six figures. The costs to be recovered from the Claimant, aside from the hire charges for which she is responsible, will be significant.

Melanie Mooney, the partner at Keoghs who represented Aviva (the defendant’s insurer), said the judgement sent a “stark warning” to credit hire companies who fail to take a reasonable stance and “blindly” continue to provide a vehicle at significant cost.

She said it was “a reckless decision” by the hire company to allow hire charges to carry on for nearly three years “without thought or a care to the potential cost to the innocent motorist in terms of increased insurance premiums”.

She added: “Insurers need to take a firm stance on cases like this and demonstrate that it won’t be tolerated. The costs to be recovered from the Claimant, aside from the hire charges for which she is responsible, will be significant.”

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