How Does An Accident Loan Car Differ From The Car Hire Option On An Insurance Policy?

When you’ve been involved in a car accident, you may be stranded without a way to get around while your car is in for smash repairs. If you’re confused between accident replacement vehicles and the rental cars you may be able to receive when you make an insurance claim, keep reading.

Does Your Insurance Cover A Rental Car After An Accident?

Rental car cover usually varies depending on whether you were at fault in a car accident.

If you are the at fault driver, most insurers only provide a rental car on an insurance claim if you’ve purchased this as an optional extra on your insurance policy. The conditions surrounding the use of the hire car, including the length of time you have access to it, depend on what is set out in your Product Disclosure Statement (PDS).

What If I Don’t Have A Hire Car As An Optional Extra on My Insurance Policy?

Taking out car hire as an optional extra will also cost you extra, and will likely increase your insurance premium, which means some people elect not to pay for a hire car on their insurance policy.

What If I Was At Fault?

If you don’t have the car hire extra on your insurance policy and you’re at fault in an accident, you’ll most likely need to look at car hire options and car rental prices while your own car is being repaired.

What If I Wasn’t At Fault?

If you were in a not at fault car accident, Right2Drive may be able to assist you with an accident replacement vehicle. Unlike the optional extra of a hire car on your insurance policy that you may have to pay for, our accident loan cars come at no cost to the eligible driver. We uphold your right to drive and work on behalf of our customers to recover our fees from the at fault party or their insurer. Plus, we offer a range of benefits to not at fault drivers:

  • We’ll arrange vehicle drop-off and pick-up at a time and location convenient to you.
  • You’ll receive a like-for-like replacement vehicle for the total length of the repair, or in the case of total loss, until you receive settlement on your car.
  • There are no ’25 and under’ age limitations on our service, but eligible drivers do need to hold a valid New Zealand learner, restricted, or full driver’s licence.
  • There’s no additional cost to you or higher excess for an additional driver, or if a family member on a learner’s or a restricted licence drives the accident loan car, so long as we have validated the licence of each authorised driver.
  • We don’t charge an upfront bond or an excess if the loan car is damaged, provided you comply with the terms and conditions set out in your rental agreement. In the event of malicious damage, you will be liable for the loss or damage caused.

Apply now or check your eligibility.

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