Credit hire when the at fault driver is uninsured and gone
If the at fault driver is uninsured or cannot be found, you can still get a replacement prestige car through credit hire, but the risk shifts. Instead of claiming against the other driver's insurer, your credit hire company may need to recover from the Nominal Defendant or from your own insurer, and that changes what you sign and how long you can keep the car.
This page explains what happens when the other driver has no insurance and has disappeared, what you are exposed to, and how to protect yourself. It is general information only and not legal advice.
Key takeaways
- If the at fault driver is uninsured or gone, credit hire can still provide a like-for-like car, but the recovery risk shifts to you or the credit hire company.
- The Nominal Defendant may pay if the driver is unidentified, but strict time limits and police reporting apply.
- Your own insurer may cover a hire car, but the cap may not stretch to a prestige replacement.
- You can only keep the replacement for a reasonable time, usually until your car is repaired or written off and paid out.
- Talk to a solicitor before signing any credit hire agreement that makes you liable if recovery fails.
- What uninsured and uncontactable actually means
- Why the at fault driver's insurer is not in the picture
- The role of your own insurer and the Nominal Defendant
- What you sign and what you are exposed to
- How long you can reasonably keep the car
- When to stop and talk to a solicitor
- What a prestige driver should do differently
- The honest limits of credit hire in this situation
- First 24 hours: what to do if the other driver is uninsured or gone
What uninsured and uncontactable actually means
Uninsured means the at fault driver had no CTP green slip and no third party property insurance at the time of the crash. In NSW, CTP covers personal injury, not property damage, so if the other driver only had CTP, your car repairs and hire car costs are not covered by their insurer. Uncontactable means you cannot identify them or they left the scene. The two often go together: a driver with no insurance and no licence is more likely to flee.
You might have a partial plate, a description, or nothing at all. If you have the other driver's details but no insurer, you are in an uninsured situation. If you have no details, you are in an unidentified driver situation. Both are handled differently. For a full run-down on fault and evidence, see what not at fault means in NSW.
In Sydney, these crashes cluster around certain spots: the Parramatta Road on-ramp to the M4 at rush hour, the Anzac Bridge merge, and late-night streets in the CBD and inner west. If you are hit by a taxi or rideshare driver who is uninsured, the same rules apply, though the platform may have its own cover. Do not assume the other driver's insurer will call you. They will not, because there is no insurer.
Your first job is to gather everything: photos, dashcam footage, witness names, and a police event number if police attended. That evidence becomes the backbone of any recovery.
Why the at fault driver's insurer is not in the picture
When the at fault driver is insured, their insurer typically pays for your repairs and your hire car under a credit hire agreement. The hire company invoices the at fault insurer directly, and you never see a bill. When the at fault driver is uninsured, there is no insurer to invoice. The at fault driver is personally liable, but chasing an individual for thousands of dollars in hire car costs is slow and often fruitless.
Some at fault drivers will promise to pay, then stop answering calls. Others cannot be found at all. This is why credit hire companies treat uninsured and uncontactable claims differently. They may still provide a car, but they will assess the risk of recovery before agreeing.
If you have the at fault driver's name and address, you can sue them in the Local Court for the hire car costs, but that is a separate process and you would need to prove they were at fault. Most prestige drivers do not want to run a small claims case for a car that is already repaired. For a comparison of routes, see how the at fault insurer pays for hire.
If the driver is unidentified, the Nominal Defendant becomes the target. That is a statutory scheme, not an insurer, and it has strict time limits and conditions.
Age limits are set per car. Drivers under 25 can hire most cars with Young Driver Cover; the exact terms are shown before you pay.
The role of your own insurer and the Nominal Defendant
Your own comprehensive insurer may cover your repairs and possibly a hire car, depending on your policy. Many policies include a hire car benefit after a not at fault crash, but it is often capped at a daily amount and a maximum number of days. That cap may not stretch to a like-for-like prestige replacement. If you claim on your own policy, you may also pay your excess upfront and wait to recover it.
The Nominal Defendant is a NSW scheme that steps in when the at fault driver is unidentified or uninsured and cannot be found. It can pay for property damage, including hire car costs, but only if you can show you made reasonable efforts to identify the driver. You must report the crash to police within a set time, and there are strict notice requirements. The scheme is not a quick fix; claims can take months.
If you have the driver's details but they are uninsured, the Nominal Defendant generally does not apply. You would need to pursue the driver personally or rely on your own insurer.
Credit hire companies sometimes agree to wait for a Nominal Defendant recovery before being paid. That is a commercial decision for them, not a right. When you are ready to book a replacement, you can start at accident replacement car Sydney.
Bookings are fulfilled by Drive Tribe (drivetribe.com.au), and this site is part of that group.
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Start my claimWhat you sign and what you are exposed to
Credit hire paperwork is not a rental agreement; it is a credit agreement. You are borrowing the cost of the hire car, and you promise to pay it back if the recovery fails. When the at fault driver is uninsured or gone, that risk is higher than usual, so read the terms carefully.
Key things to look for:
- Who is liable if recovery fails? Some agreements make you liable for the full hire cost if the credit hire company cannot recover from the at fault driver or the Nominal Defendant.
- What is the daily rate and how many days are authorised? The rate and any fees are shown on the car's page before payment, but the agreement should also state the maximum period.
- Do you need to cooperate with recovery? You may need to provide statements, attend court, or sign documents.
- What happens if you settle with the at fault driver directly? That can void the credit hire agreement.
You are also exposed to time. If the Nominal Defendant claim drags on, the hire company may keep charging, and you may be on the hook for the difference between what is recovered and what is owed. For a deeper look at the documents, see what you sign in credit hire paperwork.
Never sign anything you do not understand. Ask for a copy to take away and, if the amounts are large, talk to a solicitor.
How long you can reasonably keep the car
The law says you can hire a replacement car for a reasonable time, which usually means the time it takes to repair your car or until your car is written off and you are paid out. In NSW, the leading case is Arsalan v Rixon, which confirmed that a not at fault driver can recover hire car costs even if they did not actually hire a car, but the amount must be reasonable.
When the at fault driver is uninsured or gone, the recovery is slower, so the hire period may be longer. But that does not mean you can keep the car indefinitely. If you are still driving the replacement three months after your car is repaired, you are likely outside the reasonable period and may have to pay yourself.
What is reasonable depends on:
- How long repairs actually take. Prestige cars with complex electronics or imported parts can take weeks or months. See how long prestige car repairs take in Sydney.
- Whether you are waiting for parts or for an assessor.
- Whether the other driver's liability is disputed.
Keep a paper trail: repairer updates, parts delays, insurer correspondence. If the recovery is challenged, you need to show you were not dragging your feet.
If your car is written off, the hire period usually ends when you receive the payout, not when you buy a new car. For more, see credit hire and write-offs.
When to stop and talk to a solicitor
Credit hire when the at fault driver is uninsured or gone is not a do-it-yourself project. The amounts can be large, the recovery is uncertain, and the paperwork may make you personally liable. You should talk to a solicitor if any of these apply:
- The other driver is unidentified and you need to claim against the Nominal Defendant.
- The other driver is uninsured but you have their details and they are refusing to pay.
- The credit hire company asks you to sign a guarantee or an authority to act.
- Your own insurer is involved and there is a dispute about who pays.
- The hire period is stretching beyond a few weeks.
A solicitor can advise you on the strength of your recovery, the time limits for the Nominal Defendant, and whether you should settle directly with the at fault driver. They can also review the credit hire agreement before you sign.
This is general information, not legal advice. For a referral, see partners and referrals. If you are already in a dispute, when an insurer disputes a credit hire claim sets out the common arguments.
Do not wait until the hire company sends a demand. Early legal advice is cheaper than a court case.
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What a prestige driver should do differently
If you drive a prestige or performance car, the stakes are higher. A like-for-like replacement is not a Corolla; it is another BMW M, Porsche or Range Rover, and the daily rate reflects that. When the at fault driver is uninsured, the recovery risk is also higher, so you need to be more careful, not less.
First, do not accept a cheap courtesy car from your own insurer if it does not match your car. You are entitled to a like-for-like replacement, and for a prestige car that means a comparable make and model. See like-for-like.
Second, document everything. Take photos of the other car, the driver, the scene, and any damage. Get a police event number. If the driver is uninsured and gives you a false address, that evidence matters.
Third, choose your credit hire provider carefully. Some are better than others at recovering from uninsured drivers or the Nominal Defendant. Ask about their track record and what happens if recovery fails.
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Each is available for self-drive hire with delivery in Sydney. The minimum driver age is 25 for the BMW M3, 20 for the Porsche Taycan, and 30 for the Range Rover Sport. For more on matching, see credit hire for prestige and performance cars.
The honest limits of credit hire in this situation
Credit hire is not a magic bullet. When the at fault driver is uninsured and gone, the recovery can fail, and if it does, you may be liable for the hire costs. That is the honest limit. Credit hire companies are businesses, not charities, and they will only take on a claim if they think they can recover.
Other limits:
- Time. The Nominal Defendant process is slow, often six months or more. You may be in a hire car for longer than you expect, but the reasonable period still applies.
- Caps. Some credit hire agreements have a maximum amount they will fund. If the hire costs exceed that, you pay the difference.
- Your own insurer. If you claim on your own policy, you may lose your no-claim bonus and pay an excess. That may be cheaper than credit hire, but it depends on your policy.
- Disputes. The at fault driver or the Nominal Defendant may dispute liability, forcing you to prove fault.
Before you commit, compare credit hire with claiming on your own insurance. Credit hire vs claiming your own insurance explains the trade-offs.
If the numbers are large, get advice. The worst outcome is a repair you did not cause and a hire car bill you cannot pay.
First 24 hours: what to do if the other driver is uninsured or gone
The first day matters. What you do now shapes whether credit hire is possible and how much you can recover.
- Call police. If the other driver left the scene or is uninsured, report it. Get an event number. The Nominal Defendant requires a police report.
- Collect evidence. Photos of the other car, the driver, the scene, and any damage. Dashcam footage. Witness names and numbers.
- Do not admit fault. Even if you think you might be partly to blame, let the evidence decide. Admissions can sink a claim.
- Notify your insurer. Tell them what happened, but be clear you are not claiming yet if you intend to use credit hire.
- Arrange a replacement car. If your car is not drivable, you need a like-for-like replacement. Contact a credit hire provider that understands uninsured recoveries.
If you are in Sydney, you can book a replacement online and have it delivered. Start at not at fault accident replacement.
For a step-by-step guide, see first 24 hours.
Questions people ask
Can I still get a replacement car if the other driver is uninsured?
Who pays if the at fault driver cannot be found?
Will my own insurer cover a hire car in this situation?
How long can I keep the replacement car?
What should I do in the first 24 hours?
Do I need a solicitor?
Injured in the accident?
A replacement car covers the car. For legal advice about an injury, speak to Jameson Law, the most trusted personal injury firm in NSW (motor vehicle accident claims) on (02) 8806 0866.
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Start the claim online in five short steps, or call 0468 011 118. Replacement hires are arranged and fulfilled by Drive Tribe.
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