Courtesy car insurance cover is a policy feature that covers the cost of a temporary vehicle while the policyholder's car is repaired after a claim.
The insurer typically sets the rules for using the vehicle, and the approved repairer usually provides it. Rules vary widely from policy to policy, so what you read in the policy matters more than what you see in the headline.
The following sections explain how the loan works, which levels cover it, who is liable if the courtesy car is damaged, when the benefit ends, and when hire car cover applies.
Key Takeaways
- A courtesy car is only provided if you have fully comprehensive cover and an insurer-approved garage provides it.
- If you damage a courtesy car, you will normally have to pay an excess, so check the amount in writing before picking up the keys.
- The courtesy car benefit typically ends if your car is stolen or written off, which is when hire car cover, triggered by theft, write-offs, and repairs, can justify its extra premium.
What Is Courtesy Car Insurance Cover And How Does It Work?
Courtesy Car Insurance Cover ensures the driver can get around while their car is being repaired. The normal process consists of four steps:
- The driver notifies the insurance company of the claim, and the insurance company approves the repairs.
- The damaged car is brought into an approved garage.
- The garage provides a substitute car, normally a small hatchback.
- The loan ends when the owner returns the repaired car.
UK vehicle insurance rules, all drivers must have at least third-party insurance. Third-party insurance covers the repair of injury or damage to other persons, vehicles and property only, and not the repair of the policyholder's vehicle. A courtesy car is thus an extra service added to the minimum service, and not a legal right.
Does My Insurance Cover Courtesy Car Use?
A policy only applies to courtesy car usage where it is explicitly stated in the policy. A courtesy car is generally part of a comprehensive policy, and is not available as an extra on lower levels of cover. As is typical, the table reveals that:
| Policy type | Courtesy car included? | Typical condition |
|---|---|---|
| Third party only | Rarely | Paid add-on, if offered |
| Third party, fire and theft | Sometimes | Add-on or limited loan |
| Fully comprehensive | Often | Repairs at an approved garage |
If drivers want to understand the extent of coverage, they can start with the guide to Fully Comprehensive Car Insurance and compare it with Third-Party Fire and Theft Car Insurance.
The policy summary, typically a brief document provided in conjunction with each quote, will include the courtesy car benefit in the “additional benefits” section or under similar terms.
Availability is also a factor: if there is no spare vehicle, it can't lend one out on the day. If you request a courtesy car during booking, not on the day of collection, the garage will have time to book one for you.
Who Pays The Excess On A Courtesy Car?
A courtesy car is normally insured on a third-party basis. In effect, if the driver damages the loaned vehicle itself, it results in an excess, which is a fixed amount the driver will be required to pay on the claim.
The amount of excess cover for courtesy car hire insurance also depends on the insurance company and is typically between about £100 and £500 or even higher. Some insurance companies will use the standard policy excess, and others will allow the repairer to choose the amount.
3 checks will prevent a surprise bill:
- Request the courtesy car excess in writing before picking up the keys.
- Verify if the figure is the same as the policy excess.
- Take a picture of the vehicle at handover to document existing damage.
Anyone who opted to increase their voluntary excess to lower their premiums should check whether the same amount applies to the loaned car. Understand what voluntary excess is on car insurance before choosing a policy.
What Is Not Covered By Courtesy Car Insurance?
Many people are caught out by the limits of courtesy car benefits:
- Write-offs: If the car cannot be fixed, the courtesy car benefit typically ends.
- Theft: Many insurers will not allow you to have a courtesy car if your car has been stolen.
- Non-approved garages: If you get a repair from a garage that is not in the insurer's network, the benefit may be lost.
- Breakdowns: Standard breakdown policies do not usually cover the loan car, so if it breaks down it is a different matter. The guide to choosing breakdown cover details what additional extras to include.
How these limits are applied in practice can be seen in published decisions of the Financial Ombudsman Service. The ombudsman has also ruled in favour of a complaint in which a policy guaranteed a courtesy car if the repairer had one available, even though the case was still valid.
In another case, the court ruled that the policy was clear enough to mean that any courtesy car would be a small hatchback, not a like-for-like model. It is not assumptions that determine the outcome; it is written policy terms.
Courtesy Car vs Hire Car Cover: Which One Fits?
Hire car cover is an extra service available that provides more coverage than a standard courtesy car. There are a few differences between the two benefits:
| Feature | Courtesy car | Hire car cover |
|---|---|---|
| Triggered by | Repairs at an approved garage | Repairs, and often theft or write-off |
| Vehicle type | Usually a small hatchback | Often closer to the driver's own car |
| Cost | Often included in the premium | Extra premium |
| Availability | Depends on garage stock | Usually guaranteed |
Hire car cover is typically best for drivers who use a car to commute or run errands. If you have a second car or good public transport options, you can often get to work with a courtesy car.
A simple calculation can help here: If the daily rental rate of a similar car multiplied by the expected repair time is higher than the add-on rate, then it is worth considering.
How Can Drivers Check Courtesy Car Insurance Cover Before Buying?
Before buying a policy, the following questions should be answered:
- Does the policy summary include a courtesy car?
- Do repairs have to take place at an approved garage?
- What is the excess on the loaned vehicle?
- Does the benefit apply following theft or write-off?
- Would the daily rental be more expensive than the add-on cost?
It takes minutes to compare answers between a number of policies, and it shows gaps that headline prices do not. A short loan period or a daily limit in the wording is important, as it could take days or weeks for the repairs to be completed depending on parts and workshop demand.
Find Out What Courtesy Car Insurance Cover Is Worth on Your Policy
Interested in what the value of courtesy car insurance is for your car? Compare car insurance quotes in minutes at QuoteRadar, view courtesy car options and excess side by side and select a car insurance policy that keeps you on the road. Get a quote today!
Frequently Asked Questions
Where does the fuel for the courtesy car come from?
The driver is responsible for fuel, tolls, congestion charges, and any parking tickets. Most garages fill the tank to a specific level and would like it filled back to that level at pickup.
Is there someone else who can drive the courtesy car?
Some insurance companies will cover other drivers listed on the policy, while others will only cover the driver who owns the policy. Never let anyone take the car without checking with the garage first.
Is a courtesy car provided if the accident was not the driver's fault?
A not-at-fault driver may be offered a replacement through the other party's insurer or a separate claims service rather than a standard courtesy car. The route depends on the policy and the circumstances, so ask the insurer which applies.
Will an accident in a courtesy car affect a no-claims discount?
A claim for damage to the loaned vehicle can be recorded against the policy in the same way as any other claim. The effect on a no-claims discount depends on the insurer, so ask before accepting the vehicle.
Do courtesy cars need a parking permit on residential streets?
Councils with permit schemes usually require the registration of the temporary vehicle. A call to the local council before the vehicle arrives helps drivers avoid a parking fine.
