Renting a car while yours is being repaired

When do you need a car while yours is in the workshop?

Three situations cover most people renting for this reason, and who pays differs in each.

• After an accident. The car is with an insurer's repairer or one you chose, waiting on an assessment, approval and the repair. Who pays for a hire car depends on your policy and on who was at fault (both covered below).
• Mechanical repairs and servicing. A failed gearbox, a timing belt, a long service. Moneysmart lists mechanical failure and wear and tear among the common car insurance exclusions to compare,^[1] so don't assume a breakdown or a service is covered. Check your policy, and any roadside assistance or warranty you hold, for car hire.
• Waiting for parts. The repair might take a day, but the car can sit waiting on a panel, a sensor or a windscreen. Ask the repairer for the expected parts date in writing.

Does my car insurance pay for a hire car?

It depends on the policy. Moneysmart lists "free towing, on-the-spot repairs, taxi fare, accommodation and car hire" among the extras some policies include, and tells you to compare inclusions and exclusions between insurers.^[1] The only way to know is to read your own policy wording (the product disclosure statement, or PDS) or ask your insurer, before you book.

Questions to ask:

• Is hire car cover included, optional (and did I take it), or not offered?
• Does it apply only when I'm not at fault, or also after a theft or a claim where I'm at fault?
• Is there a limit per day, a total limit, or a maximum number of days?
• Can I choose the rental company and be reimbursed, or must I use the insurer's provider? What documents do you need?

Also budget for your excess: Moneysmart says you generally pay it when you claim, whether or not you were at fault, though some policies waive it in limited circumstances.^[2]

Can I claim hire car costs from the driver who hit me?

Usually, yes. The Financial Rights Legal Centre explains that if you are not at fault, you can chase the other driver or owner (or their insurer) for the reasonable costs of the damage, and that these usually include hire car costs, along with repairs and towing.^[3] The principle is that you should be put back in reasonably the same position you were in before the accident.^[3]

"Reasonable" does real work here. You must act reasonably and minimise your loss,^[3] and the centre describes the hire car you are generally entitled to as one of similar value or type to your damaged car, for a reasonable period.^[4] Renting a large SUV to replace a small hatchback, or keeping it after your own car is ready, invites a dispute.

How it works in practice, according to the centre:

• You can't claim on the other driver's insurance directly, because their insurer has no contract with you, but you can tell the insurer you have a claim against its customer, and send a letter of demand quoting the claim number.^[3]
• The insurer may offer to assess or repair your car or give you a hire car. You don't have to accept the offer; check its terms first.^[3]
• If you settle, be clear about what the payment covers. A settlement for repairs only can leave hire car costs unpaid.^[3]
• If you can't agree with the insurer, you may be able to complain to the Australian Financial Complaints Authority (AFCA), subject to conditions the centre lists, or go to court; get legal advice before going to court.^[3]

If you're insured, ask your insurer before you rent whether it will recover the hire costs for you or you should claim them directly.

What's the catch with a free courtesy car?

After a not-at-fault accident you may be offered a "free" courtesy car. The Financial Rights Legal Centre says these are really credit hire: you hire the car on credit, and the company chases the at-fault driver or their insurer for the cost.^[4] Calling it free is, in the centre's words, an over-simplification.^[4]

Before signing a credit hire agreement, the centre suggests you understand:

• What you are authorising, such as dealing with the other insurer, hiring lawyers and starting court action in your name.^[4]
• Your obligations: if you don't cooperate, for example with witness statements or attending court, the company may chase you for all the hire costs.^[4]
• Whether you pay if the company can't recover the cost, for instance because the other driver can't be found or their insurer declined the claim.^[4]
• That if the company loses in court you may have to pay the other side's legal costs, and that a judgment on the hire costs may stop you suing separately for your repair costs.^[4]

For free advice on an insurance or credit hire problem, the centre refers people to the Insurance Law Service on 1300 663 464.^[4]

What paperwork should I keep for the claim?

The Financial Rights Legal Centre recommends keeping copies of every letter and email, plus notes of phone calls with the date, time, who you spoke to and what was said.^[3] For a hire car claim, keep:

1. The rental tax invoice, showing the car, the dates and the amount paid.
2. Any extension: the new return date and what you paid for it.
3. The repairer's time estimate, and any later message saying it will take longer.
4. The date your own car was ready to collect, so the hire end date lines up with it.
5. Your claim number, and the other driver's details and insurer if they caused the accident.

At Rentzy the tax invoice comes with your booking confirmation and is kept in My bookings.

How long should I book the hire car for?

Start from the repairer's written estimate, then check the rental's rules on three things before you commit: the minimum, extensions and early returns.

• Minimum rental. Each car has its own minimum rental, shown with the car (from 4 weeks to 10 weeks). If the minimum is longer than the repair, you pay the minimum.
• How rent adds up. Rent is charged for your dates: whole weeks at the weekly price, and any other days at the car's extra-day price, never more than a week's price for those days.
• Extending when repairs run over. Ask from your booking at least 24 hours before your return time; closer to it, call us. Our team approves each extension first; then you pay the difference before it takes effect. Extra time is charged at the prices you booked at.
• Collecting your car early. At Rentzy, unused days are not refunded. Check this in any rental agreement; the ACCC suggests asking before you hire whether an early return earns a partial refund.^[5]

Worked example: the 2009 Mazda 2 is A$160 a week with a minimum rental of 4 weeks, so even a 10-day repair costs the minimum: A$640 in rent.

When an early return isn't refunded, booking for the realistic estimate and asking for an extension if the repairer is late usually costs less than booking long just in case. Ask for the extension as soon as the repairer tells you about a delay, not on the last day. Full prices and charges are on fees and charges, and weekly options on weekly car rental.

Renting from Rentzy while your car is fixed

• Pickup and return are at 238 Nudgee Road, Hendra. Monday to Friday, 8am to 5pm. Closed Saturday and Sunday. There are no after-hours pickups or returns.
• Bookings need at least 24 hours' notice, so book as soon as the repairer confirms the drop-off date.
• When you book (or request a car), an A$100 deposit is paid online and credited to your rent.
• A refundable A$500 bond is paid at pickup, separate from rent, so budget for both while you wait to be reimbursed.
• Drivers, licences and what to bring are on rental conditions; the pickup steps are in our rental car pickup checklist.
• Not sure a car's minimum fits your repair? Contact us with the repairer's dates before you book.

The hire car is your responsibility while you have it, separate from the claim on your own car: our renter's excess is A$2,500 (see fees and charges). Our guide to rental car bond, deposit and excess explains how the three differ.