Is it good practice to have a courtesy car included on my insurance policy?

I am somewhat confused by your advice to the effect that the inclusion of a courtesy car on one's insurance policy is a questionable benefit. I have just renewed my policy with Liverpool Victoria and have opted for a courtesy car that is available "if repairs are carried out by our Selected Repair Service". The cost of this is a modest increase in my insurance premium, and the hire cost is borne by the insurance company. It seems to me therefore that this is an "extra" that is worth having. Or am I being spectacularly dim and missing something obvious?

Asked on 15 September 2011 by IWB, London SW15

Answered by Honest John

The difference is between a courtesy car provided by the insurer itself and a "credit hire" car provided by a credit hirer that gives commission to an accident management company that jumps in between you and your insurer to "handle" your claim. One reader was left with a £70,000 bill for this because the other party's insurer regarded him as not having "mitigated" his costs.

Tags: insurance accident management courtesy cars

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