If you have been injured in an accident involving a hire car in the UK, you may be able to claim compensation regardless of whether you were the driver, a passenger, or another road user. The claim may be against the other driver's insurer (if they were at fault), or against the rental company if a mechanical defect in the hire car caused the accident. CDW (collision damage waiver) covers vehicle damage, not personal injury. You normally have three years to bring a claim.
Hire cars are a routine part of modern life — for holidays, business trips and temporary replacements. But accidents happen, and when they involve a rental vehicle, additional questions arise: who is liable, what does the rental insurance cover, and who pays for what? This guide explains how hire car accident claims work in the UK. We are an independent information service, not a law firm.
Common scenarios
| Scenario | Who you claim against |
|---|---|
| Another driver caused the accident | The other driver's motor insurer |
| The hire car had a mechanical defect | The rental company (negligence / Consumer Protection Act 1987) |
| You were a passenger in a hire car | The at-fault driver's insurer |
| Single-vehicle accident, no defect | Your own insurance (if any additional cover) — no third-party claim |
Rental company liability
Rental companies have a duty to provide vehicles that are roadworthy and properly maintained. Under the Road Traffic Act 1988, it is an offence to use or cause to be used a vehicle in a dangerous condition. If a hire car had defective brakes, worn tyres below the legal minimum tread depth, faulty steering, defective lights or any other mechanical fault that caused or contributed to an accident, the rental company may be liable for negligence. A separate claim may also lie under the Consumer Protection Act 1987 on a strict liability basis if the vehicle is classified as a defective product.
Evidence is critical: the vehicle should be preserved and inspected by an independent engineer as soon as possible after the accident. Photographs of the defect, the accident scene and damage to all vehicles are essential.
Credit hire claims
If your own vehicle is off the road because of a non-fault accident, you may be entitled to a credit hire replacement vehicle while yours is being repaired. The credit hire company provides the car immediately and recovers the cost from the at-fault driver's insurer as part of your special damages claim. The leading authority is Dimond v Lovell [2002], and the court assesses whether the hire rate was reasonable (the “basic hire rate” or BHR). If you can show you could not have afforded to hire a car outright, the additional credit element may be recoverable.
Compensation
Standard personal injury framework: general damages guided by the JCG 17th edition (2024), plus special damages for lost earnings, treatment, travel, hire car costs, and vehicle damage. RTA whiplash claims below the statutory threshold are subject to the Civil Liability Act 2018 tariff.
Time limits
Three years from the accident date (Limitation Act 1980). For accidents abroad, different limitation periods may apply.
Accidents abroad in a hire car
If you hired a car abroad and had an accident, different legal systems and limitation periods may apply. For EU/EEA countries, the Fourth Motor Insurance Directive (implemented in UK law by the Motor Vehicles (Compulsory Insurance) Regulations) allows you to bring a claim in the UK against the foreign insurer's UK representative. This avoids the cost and complexity of litigating abroad.
For package holidays, the Package Travel and Linked Travel Arrangements Regulations 2018 may provide additional rights if the hire car was part of a package booked through a tour operator. The tour operator may be jointly liable for any injury caused by the hire car arrangement.
Evidence is particularly important for accidents abroad: take photographs, obtain a police report (many countries require this for insurance claims), get contact details for the other driver and any witnesses, and report the accident to the rental company immediately. Time limits vary by country — in some jurisdictions the limitation period is as short as one year — so seek legal advice promptly.
Getting help
We are not a law firm. For an RTA solicitor, use the Law Society “Find a Solicitor” service. Most claims run on a no-win-no-fee basis.
Frequently asked questions
Can I claim if I had an accident in a hire car?
Yes. Your claim depends on the cause of the accident. If another driver was at fault, you claim against their insurer as normal. If the hire car had a mechanical defect that caused the accident, you may claim against the rental company. If you were injured as a passenger, you claim against the at-fault driver.
What if the hire car had a defective brake or tyre?
The rental company has a duty to maintain its vehicles in a roadworthy condition. If a mechanical defect such as faulty brakes, worn tyres, defective steering or a lighting failure caused or contributed to the accident, the rental company may be liable under negligence and potentially under the Consumer Protection Act 1987 for a defective product.
Am I covered by the CDW?
Collision damage waiver (CDW) typically covers damage to the hire car itself, not personal injury. It is not insurance in the traditional sense but a contractual waiver of the rental company right to charge you for vehicle damage. Your personal injury claim is separate from the CDW and is brought against the at-fault party insurer.
What is a credit hire claim?
If your own car is off the road because of an accident that was not your fault, you may be entitled to a replacement vehicle on credit hire while yours is being repaired. The cost is recoverable from the at-fault driver insurer as part of your special damages. The principles from Dimond v Lovell [2002] and subsequent case law govern recoverability.
What if the accident happened abroad?
If you hired a car abroad and had an accident, different rules may apply. For EU/EEA countries, you can bring a claim in the UK against the foreign insurer UK representative under the Motor Vehicles (Compulsory Insurance) Regulations. For package holidays, the Package Travel and Linked Travel Arrangements Regulations 2018 may provide additional rights.
How long do I have to claim?
Three years from the date of the accident for a UK accident. For accidents abroad, different limitation periods may apply depending on the country. Seek advice promptly.
What compensation could I receive?
Standard personal injury compensation: general damages for the injury guided by the JCG (17th edition, 2024), plus special damages including lost earnings, treatment costs, hire car costs and vehicle damage.
Who pays for the hire car damage?
If another driver was at fault, their insurer pays for the vehicle damage. If you were at fault, the CDW (if purchased) may cover the rental company claim against you for vehicle damage. If the rental car was defective, the rental company is responsible.
Get help from official, free sources
- Solicitors Regulation Authority (SRA) — check a solicitor is regulated
- The Law Society — Find a Solicitor — accredited PI specialists
- Citizens Advice — free, impartial guidance on your rights
- GOV.UK — courts, time limits and legal aid information
Related guides: road traffic accident claims, defective product claims, dealing with insurance companies, whiplash claims, how compensation works.