Rear-Ended but The Other Party Refuse to Cover The Cost of Rental Car

Lheychacha on 02/12/2018 - 11:33
Last edited 02/12/2018 - 12:05 by 1 other user

Hi guys, I was rear-ended by a national tool hiring company car few days ago.

While his car had barely any damage, my back window was completely smashed and a few big dents that I could not open it anymore. The bumper was also damage. I got it to a crash repair close to my house and they are awaiting for their claim number from his insurance company to be able to act further i.e. provide quote etc.

However, I need my car for work and other daily errands of course as my I work at a different site everyday. I requested the other party to communicate with his insurance to provide me a loan car or compensate the cost when I rent a car while my car is at the crash repair. He replied me that their insurance does not provide this I have to talk to my own insurance but I only have a 3rd party insurance. My insurance said that they are liable for this cost as it's them at fault.

I am kind of stuck as I know it is going to take a while for this to process. I surely do not want to go and rent a car out of my pocket and hope that they will pay me back. I also used uber to work so I also wonder would I be able to request compensation for it. What should I do or am I really entitled to have a loan car out of their expenses?

Any input is much appreciated!

Automotive

Comments

  • rave75 on 04/12/2018 - 11:48

    No birds car rental is $25 a day….

  • pxrnm on 04/12/2018 - 13:59

    As long as you got a claim number and you are not at fault, you should get a replacement car with this company:
    https://acornrentals.com.au/

    I have use them before when I got rear ended, they will give you the replacement car and the cost they will get it from the faulty party insurance. So they do it all for you and relief you from nagging the insurance company.

    Cost me nothing except for time on filling in the form.

    The car will be dropped/picked up at your agreed place.

    • Euphemistic on 05/12/2018 - 07:29

      Makes it harder when the company does not use insurance for claims under $50k. There is no claim number. I have worked for 2 businesses that have done this, no insurance claim, just pay out what is required unless the claim is huge.

  • digitalbath on 05/12/2018 - 15:16
    +2

    I was reversed into in a shopping centre car park not long ago. I didn’t have hire car in my insurance policy. As it wasn’t my fault I didn’t want to pay for a hire car either.
    I did some googling came across a few companies but acorns had the best reviews and their customer service was great. They chase up the other parties insurance and get payment from them.
    https://acornrentals.com.au
    I was sceptical at first too. Once I talked to them on the phone, explained the details of the incident. They pretty much approved it right then. The hire car was dropped off and picked up from my home. I had to sign an agreement of course, but they don’t take any credit card or bank details. I asked multiple times what the catch is, but there didn’t seem to be any. If the other party insurance play hard ball I may have had to go to court and testify or something.
    I ended up with the hire car for a week. No issues what so ever.
    Great company to deal with.

    • CMH on 06/12/2018 - 01:40

      These not-at-fault guys are still trying to build their reputation. AFAIK I haven't really heard from anyone with bad experience with them - to the point where some were found at-fault in the end they just got them to return the car ASAP and waived the hire fees (was only a couple of days at that point).

      • digitalbath on 06/12/2018 - 21:10

        Maybe so. I still got a free hire car for a week. And didn’t have to deal with the other parties insurance company. I’ll happily use them again, though hopefully I don’t need to.

  • nith265 on 06/12/2018 - 13:08

    @whooah1979 posted the below link to a court decision in a comment further up in the thread.

    BEAMISH -v- KANAKIS [2017] WADC 33 (15 March 2017)

    It’s great, It pretty much answers everything you need to know at law about OP’s question. I also kills off the suggestion that you can only ask for compensation if you can prove you need it for work.

    Yes they have to compensate you for the cost of a hire car.

    In summary:

    • Guy is driving his 2006 Porsche and someone crashes into the back of it.
    • Via a company called Compass who are the same type of company as Right To Drive mentioned in this thread, he gets a 2014 Porsche as a replacement vehicle @ $550 a day. Total bill by the time he gets his car back is $19,106.
    • RAC Insurance says sorry we’re only paying out @ $71.50 a day, total of $2,288, which is the price of a more standard vehicle that gets you from A to B
    • Compass takes insurance company to court on behalf of the Guy saying no, we’ve replaced like for like and it's a reasonable figure
    • Court agrees with Compass and say RAC need to pay the full $19,106 for the hire of a 2014 Porsche which was a fair replacement for a 2006 Porsche (since you cant hire a 2006 Porsche)
    • RAC Insurance appeals the decision
    • Appeals court agrees with the first decision, RAC Insurance has to pay original amount plus interest.

    A key quote:

    I do not accept that the measure of Mr Kanakis' damages should be by reference to a vehicle which would merely meet the needs of Mr Kanakis; that would get him from point A to point B. What he needs a car for is not the issue. The issue is, what is he entitled to hire to compensate him for his loss of use of his 2006 Boxter. On the evidence, the closest vehicle that would compensate him for that loss was the 2014 Boxter. On the evidence, the 2014 Boxter was a reasonable replacement.

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