Reference
Credit Hire & Claims Glossary
Plain English definitions of the most common credit hire and claims terms - from BHR to uninsured loss recovery.
Accident Management
- End-to-end handling of a vehicle incident including FNOL, recovery, replacement vehicle, repair coordination, and claim recovery.
Basic Hire Rate (BHR)
- The going market rate for hiring an equivalent vehicle on standard terms - used as a comparator in credit hire disputes.
CHO (Credit Hire Organisation)
- A business that supplies credit hire vehicles to non-fault claimants and recovers the cost from the at-fault insurer.
Credit Hire
- A like-for-like replacement vehicle supplied to a non-fault claimant on credit, with charges recovered from the at-fault insurer.
Credit Repair
- Repair of the claimant’s damaged vehicle on credit, with charges recovered from the at-fault insurer in the same way as credit hire.
Direct Hire
- Vehicle hire supplied directly to a business - insurer, CHO, or fleet operator - on agreed commercial terms rather than under a credit hire agreement.
Excess
- The amount the policyholder pays towards a claim before the insurer contributes. Often waived or reduced in credit hire arrangements.
FNOL (First Notification of Loss)
- The first report of an incident to an insurer or accident management provider - the trigger for the claims process.
GTA (General Terms of Agreement)
- An industry framework that sets out how subscribing CHOs and insurers handle credit hire claims to reduce disputes.
Impecuniosity
- A claimant’s inability to afford a non-credit hire alternative - relevant to whether credit hire rates can be recovered in full.
Intervention
- Where the at-fault insurer contacts the non-fault driver early to offer their own replacement vehicle, often to limit credit hire exposure.
Like-for-Like
- A replacement vehicle broadly equivalent to the claimant’s own - same class, capacity, and capability.
Mitigation
- A claimant’s duty to take reasonable steps to limit their losses, including only hiring for as long as needed.
Non-Fault
- An accident in which the claimant is not responsible - a prerequisite for credit hire.
Subrogation
- An insurer’s right to step into the shoes of the insured to recover costs from a liable third party.
Total Loss
- When a vehicle is uneconomical to repair and is written off by the insurer.
TPI (Third Party Insurer)
- The insurer of the at-fault driver - the party from whom credit hire charges are typically recovered.
Uninsured Loss Recovery
- Recovery of losses not covered by the claimant’s own insurance - e.g. excess, hire charges, personal items damaged.
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