A replacement car under the at-fault party’s third-party liability insurance – who is entitled to one and for how long

A replacement car provided under the at-fault party’s third-party liability insurance is one of those entitlements that victims often only find out about too late – after they have already spent two weeks commuting to work by bus or paying for a hire car out of their own pocket. However, a car for the duration of the repairs is also available to private individuals, not just businesses, and the cost is covered by the at-fault party’s insurer. Below, we’ve summarised what you need to know before you collect the keys: who is entitled to a replacement car, for how long, when the hire cost can be settled by direct debit, and in which situations the insurer will refuse to reimburse you.

A replacement car under the at-fault party’s third-party liability insurance – who is entitled to one?

Anyone whose vehicle has been damaged in an accident caused by another driver and is unfit for safe driving is entitled to a replacement car. For a long time, it was believed that reimbursement of costs applied only to business owners, as they alone suffer a quantifiable loss. This was settled by a ruling of seven judges of the Supreme Court dated 17 November 2011 (ref. III CZP 5/11): the liability of the third-party liability insurer covers deliberate and economically justified expenditure on hiring a replacement vehicle, even where the damaged car was not used for business purposes.

In practice, there are two key conditions. Firstly, the hire must have been necessary – in other words, you genuinely needed the car for your day-to-day life. Secondly, it must be economically justified – the rate must be commensurate with the class of the damaged vehicle and the price levels on the local market, rather than being the most expensive option available.

How long are you entitled to a courtesy car for?

There is no single fixed deadline, and this can sometimes be a source of dispute. The duration of the hire is determined by what actually happens to the damaged car:

• Partial damage – You are entitled to a courtesy car whilst the vehicle is being repaired. In this regard, the insurer takes into account the technical repair time, plus the actual waiting time for parts and for the vehicle to be admitted to the garage.
• Total loss – The period runs until the date on which the compensation is paid, taking into account a reasonable amount of time needed to purchase another car. It therefore does not automatically end on the date on which the loss adjuster declared the vehicle a total loss.

It is worth keeping a record of any downtime beyond your control – confirmation from the service centre that they are awaiting a part can be decisive in securing an extension to the hire period.

Cashless rent or paying out of your own pocket

The most convenient option is cashless settlement: the hire company settles the claim directly with the at-fault driver’s insurer, and the injured party does not have to pay out of their own pocket. This is subject to the insurer accepting liability for the damage – only then can the hire be paid for in this way.

The second option is to pay the rent yourself and claim a refund. There is an important rule to bear in mind here: only expenses that have actually been incurred – that is, those documented by an invoice and paid for – are eligible for a refund. Keep the hire agreement, invoices and the vehicle handover and return report – these will determine the amount of the refund.

The insurer usually recommends its own partner car hire company. You are under no obligation to use it, but if you choose another one, bear in mind that the rate should be in line with market prices for that class of car.

When an insurer refuses to reimburse costs

The most common reasons for a claim being refused or the amount being reduced:

• A second car in the household, which you were free to use whilst the repairs were being carried out.
• Occasional use of a damaged vehicle – if the car was parked outside the house and was only driven once a month, it is difficult to demonstrate that there was a valid reason for the hire.
• A rate well above the market rate or a vehicle in a higher class than the damaged one. If a compact Fabia has been written off, the hire of a premium SUV will be called into question.
• A tenancy longer than is reasonable – days on which the repairs had already been completed but the courtesy car was still in use.
• No documents – contracts, invoices, payment receipts.

A refusal does not mean the matter is closed. You can lodge an appeal with the insurer and then submit a complaint to the Financial Ombudsman.

What class of courtesy car are you entitled to?

The rule is simple: a replacement vehicle should correspond to the class of the damaged car, rather than being a consolation prize or an opportunity to upgrade to a higher segment. If you drive a compact car, the insurer will apply the rate for a car in the same class. In the case of a van used for business purposes, the benchmark is a vehicle with a similar load capacity – replacing a van with a passenger car usually makes it impossible to carry on business, so such a hire arrangement is also justifiable.

Exceptions can go both ways. If a vehicle of the correct class is not available at a given time, you can hire a similar one – in which case it is worth keeping the confirmation of unavailability. However, if the damaged vehicle was fitted with a tow bar, auxiliary air conditioning or a refrigerated body, and these features are essential for your day-to-day work, they may also be included in the rental quote. We’ve put together a guide with more information on what to look out for when signing a contract What to look out for when hiring a car.

What to do before collecting your courtesy car

• the claim reference number and the details of the at-fault party’s third-party liability insurance policy,
• a statement from the perpetrator or a police report,
• the driving licence and identity card of the driver who will be driving,
• estimated repair time from the workshop,
• whether the insurer has already accepted liability – the settlement procedure depends on this.

When you collect the car, check the scope of the replacement car’s insurance cover, the mileage limit and the refuelling policy. These three points are what most often make a difference when you return the vehicle – we’ve covered them in more detail in our guide What are the terms and conditions for car hire?.

Frequently Asked Questions

Are you entitled to a courtesy car if the damaged car is still roadworthy?

If the vehicle is roadworthy and registered for use, and the repair does not require it to be taken to a garage, it is difficult to justify hiring a car. The entitlement arises when the car is taken to a garage or is unable to be driven safely.

Who pays for the fuel in the replacement car?

The user is responsible for the cost of fuel. The insurer reimburses the cost of hire, but not the running costs.

Are you also entitled to a courtesy car if the damage was your own fault?

Not from the at-fault driver’s third-party liability insurance – that’s another person’s third-party liability cover. A courtesy car following damage to your own vehicle is, however, often covered under a comprehensive insurance policy or a roadside assistance policy, so it’s worth checking the terms of your policy.

Do you need a car whilst yours is being repaired?

We rent out cars and vans in Wadowice, Kraków and Katowice, with collection also available at Balice and Pyrzowice airports. If you’re waiting for your car to be repaired following a collision, please ring us and quote your claim number – we’ll check for a suitable replacement vehicle in a similar class to yours and agree on the hire terms and payment arrangements.

Slawa Rent, Błonie 1, 34-100 Wadowice
Tel. +48 787 001 003
View available cars