This week we have been exploring the particular problems associated with motorcycle hire charges, or credit hire as it is more commonly known.
If you have an accident on your motorbike, your insurer will often point you in the direction of a small number of accident management companies who will offer to put you on a hired motorcycle if yours is off the road.
The idea is that you will use the hire bike whilst yours is assessed by an engineer, and either replaced or repaired, depending on the damage.
Riders will often be surprised at this point to find out that these bikes are often hired out to you at a day rate of £200-£300 per day, and that additionally you will be asked to sign a Credit Hire Agreement that will put you in the frame for being liable for these charges should the other driver not be found liable for the accident for any reason.
Things To Consider
You should consider whether you really need to accept a hire bike from an accident management company.
If you have access to a car, or another bike for example, then the at-fault-driver’s insurers may refuse to reimburse hire costs, arguing that it wasn’t necessary.
You should also be wary of accepting a very expensive bike from an accident management company unless you are classed as “impecunious” – you haven’t got the money to pay for a cheaper solution, needed the bike and so had to accept what was offered to you.
If you’ve been knocked off your bike, although you may not be held liable you do have a duty to mitigate your losses. So rather than rack up a £30k bill on a hire bike as you needed it to work, it make have cost less money to claim for loss of earnings instead.
The law around hire charges is complex, and you really need to understand it to ensure that you don’t fall foul of a huge hire bill when your cases concludes.
The financial ombudsman gets many complaints on the subject, which can be found on their website.
Additionally there is much case law surrounding the subject…but that’s our job!
You should always get in touch with us for independent legal advice should you be offered a hire bike, and ensure that you are aware of all your options.
