If you weren’t at fault
The at-fault driver is responsible for the losses their negligence caused you, and in practice their insurer pays. That includes the reasonable cost of hiring a replacement car while yours is being repaired.
In December 2021 the High Court of Australia decided Arsalan v Rixon; Nguyen v Cassim [2021] HCA 40. The Court unanimously confirmed that a not-at-fault driver can recover the reasonable cost of hiring a car broadly equivalent to their own — they don’t have to prove they “needed” that particular kind of car, and they’re not limited to the cheapest car that would get them around.
If you were at fault
Nobody else pays. Check your own comprehensive policy: some include a hire car after an at-fault accident (often with a daily limit and a maximum number of days), others only after theft, and some not at all.
If you get your car repaired through us, we’ll give you a courtesy car — we keep you on the road at all times, not just when you’re not at fault.
What “reasonable” means in practice
- The car should be broadly comparable to yours
- The hire should last only as long as the repair (or until a write-off is settled)
- The daily rate should be in line with the market for that kind of car
- Everything should be documented — that’s what gets claims paid without disputes
How we handle it
When you’re not at fault and the other driver is insured, we arrange a comparable replacement car (supplied by our sister company, National Hire Car), manage your repair, and recover the costs from the at-fault insurer. Replacement car after an accident.
General information only, current as at 13 October 2026. It isn’t legal advice — for advice about your situation, speak to a lawyer or your insurer.