Like-for-like is one of those phrases that gets used constantly and explained almost never. It appears in the General Terms of Agreement, in credit hire case law, and in nearly every conversation about replacement vehicles. Most people first hear it at the exact moment somebody is handing them keys to a car that is noticeably smaller than their own.
So here is what it actually means, what it obliges a provider to supply, and what to do if the vehicle in front of you does not match.
What does like-for-like actually mean?
Like-for-like means the replacement should be broadly equivalent to your own vehicle. That phrase, broadly equivalent, is the language used in the GTA and it is deliberately not the same as identical.
The principle behind it is straightforward. The law aims to put an innocent driver back in the position they were in before the accident, no better and no worse. A replacement that leaves you unable to do your job, carry your family, or fulfil your licence conditions has not done that. Nor has one that hands you something considerably grander than you were driving.
In practice, equivalence is judged on what the vehicle lets you do, not on the badge.
What counts as broadly equivalent?
Four things carry most of the weight:
- Vehicle class and size. A supermini is not equivalent to a family estate. A panel van is not equivalent to a hatchback. The replacement should sit in the same broad class as your own car.
- Transmission. If you hold an automatic-only licence, an automatic is not a preference, it is a legal requirement. If you drive an automatic by choice, it is still a reasonable match to expect.
- Fuel type, where it matters. If you drive an electric vehicle and have home charging set up, a petrol car changes your running costs and your routine. Equally, if you have no way to charge, an EV is not a helpful substitute.
- Practical capability. This is the one most often missed. If your car carries tools, stock, a wheelchair, three child seats or a dog crate, the replacement needs to carry them too. If it cannot, it is not equivalent, whatever class it nominally sits in.
Licence and plating conditions sit on top of all this. A licensed taxi driver cannot work in an unplated car, so a replacement taxi has to be correctly plated for the right authority to be of any use at all.
What like-for-like does not mean
It is worth being straight about the limits, because unrealistic expectations cause as many disputes as unreasonable offers.
Like-for-like does not mean:
- The identical make and model. A comparable vehicle in the same class is sufficient. If you drive a three-year-old Golf, an equivalent family hatchback meets the standard.
- An upgrade. You are entitled to be put back where you were, not moved somewhere better. If a provider offers you something notably more expensive than your own car, that can create problems later when the charges are assessed.
- Every optional extra you had. Heated seats and a premium sound system are not part of the equivalence test. Practical function is.
- A vehicle for as long as you fancy. Like-for-like governs what you get. A separate principle, the reasonable period, governs how long you keep it. We cover that in detail in our post on your rights to a replacement vehicle.
Are you entitled to a like-for-like replacement?
If the accident was not your fault, the underlying legal principle is that you should be restored to your pre-accident position, and a broadly equivalent vehicle is how that is achieved in practice.
That said, the route you take determines what you actually get, and there are four different parties who can provide a replacement car. A courtesy car from your own insurer or from the repairing garage is governed by the terms of that arrangement, not by the like-for-like standard. A "Group A courtesy car" on your policy means a small hatchback whatever you drive. That is the deal you bought, and it is not a breach of anything.
Credit hire is the route built specifically around equivalence. The provider supplies a matching vehicle and recovers the cost from the at-fault driver's insurer. If you want the difference between the two side by side, our post on credit hire versus a courtesy car sets it out plainly, and how credit hire works covers the mechanics.
What if you are offered something smaller?
You can decline it, and you should say why.
You are not obliged to accept a vehicle that cannot do what your own car does. What you should not do is refuse everything and go without, because you are expected to act reasonably and keep the cost of your claim down. That duty is called mitigation and it genuinely matters if the claim is later scrutinised.
The practical approach is simple:
- Say what does not match, specifically. "I drive a long wheelbase van and this is a hatchback, I cannot carry my tools" is a clear, reasonable objection. "I do not like it" is not.
- Do not feel rushed. An offer that comes with pressure to decide on the spot is worth pausing on.
- Ask a provider who can source the right vehicle. Specialist vehicles take longer to find, so the sooner the search starts the better.
Keep a note of what was offered and when. If the equivalence of the replacement is ever questioned, a short contemporaneous record of what you were offered and why it did not work is worth a great deal.
Like-for-like for vans, taxis and electric vehicles
Specialist vehicles are where like-for-like stops being a technicality and starts being the whole thing.
Commercial vehicles. Payload, length and access matter more than class. A Luton with a tail lift is not replaced by a short wheelbase van. Our commercial vehicles page covers what we hold.
Taxis and PHVs. The vehicle has to be plated for the correct licensing authority, or the driver cannot legally work. This is the clearest case of all: an unplated car is worth nothing to a plated driver, no matter how new it is. See replacement vehicles for Uber and PHV drivers.
Electric and hybrid. Charging arrangements, range and running costs all form part of whether a substitute genuinely works. A driver with a home charger and no off-street petrol habit is not made whole by a diesel.
How long does it take to get a like-for-like vehicle?
A standard car can usually be delivered the same day. Specialist vehicles take longer, because there are fewer of them and they may need plating, signwriting removal or specific insurance.
The honest trade-off is speed against suitability. You can often have something immediately, or the right thing shortly. For most claimants, waiting a few hours for a vehicle that actually works out beats taking an unsuitable one straight away and living with it for three weeks. We deliver plated replacements within around six hours in most cases.