How referral partners handle liability disputes

What liability actually means in a hire claim

Liability is the at-fault insurer's written acceptance that its driver caused the collision. Until that acceptance arrives, nobody owes your client a replacement car. The hire is a credit arrangement: the provider carries the cost and recovers it from the at-fault insurer once liability is admitted or proven. That is why a denial does not stop the hire, but it does change how carefully the file is built.

In New South Wales, the leading authority is Arsalan v Rixon [2021] NSWCA 242. The Court of Appeal confirmed that a not-at-fault driver can recover the reasonable cost of a replacement vehicle of comparable quality, even where no car was hired and no loss was actually suffered. The practical effect is that a prestige owner is not forced into a Corolla while a Porsche is in the shop. Like-for-like is the benchmark, and reasonableness is judged against the client's own vehicle.

Two things follow. First, the claim is the client's, not the repairer's or the referrer's. Second, the at-fault insurer will test whether the hire was necessary, whether the rate was reasonable and whether the client mitigated their loss. A denial is often a negotiating position rather than a final answer, especially where the police report or dashcam footage points the other way.

For the underlying principles, see not at fault explained and what not at fault means in NSW.

What the client should gather in the first 24 hours

Evidence gathered on the day is worth ten times the same evidence gathered a fortnight later. Ask your client to do the following before the adrenaline wears off.

1. Photograph every angle of both vehicles, including number plates, damage close-ups and the position of the cars in the lane or intersection.
2. Photograph the scene: traffic lights, give-way signs, lane markings, skid marks, debris and the nearest street sign. In Sydney, a photo showing the Bondi Junction intersection or the Military Road lane arrows can settle a dispute on its own.
3. Collect the other driver's name, licence number, insurer, registration and mobile number. If they refuse, note that refusal in writing with the time.
4. Get names and numbers from independent witnesses. A pedestrian outside the Grounds of Alexandria or a driver queued behind you on Parramatta Road is gold.
5. Call the police if anyone is injured, if the other driver appears affected by drugs or alcohol, or if they leave the scene. Note the event number.
6. Download dashcam footage to your phone the same day. Many cameras overwrite within 24 to 48 hours.
7. Notify your own insurer, even if you are not claiming. Most policies require it.
8. Write a timeline while it is fresh: time, street, direction, speed, what you saw and heard.

Send everything to the referral partner the same day. The first 24 hours page sets out the full checklist, and what to do after a not at fault accident covers the steps in order.

What a referral partner can and cannot promise

A referral partner can promise a replacement car, a like-for-like match, a transparent rate and a credit arrangement that does not require the client to pay upfront. That is it. Anything about the outcome belongs to the insurer or, ultimately, a court.

What cannot be promised:

• That the other insurer will accept liability.
• That the hire will be paid in full by the other side.
• That the client will never see a bill.
• That the claim will settle within a set number of weeks.
• That the other driver will be found, insured or solvent.

What can be promised, and should be put in writing: the rate is disclosed before the client signs, the bond equals the excess the client chooses, and the client can end the hire at any time. Paying by card carries a small surcharge; bank transfer and cash on the rental do not. The minimum driver age is 20 on most cars and 25 or 30 on some, and cars can be booked from a single day.

Where the client wants a specific car, the natural next step is to check availability and book. Bookings are fulfilled by Drive Tribe (drivetribe.com.au), and this site is part of that group. The rate, the bond and every fee are shown on the car's page before payment.

See referral partner transparency and how referral partnerships work.

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How the hire proceeds while liability is disputed

The hire starts when the client needs a car, not when liability is admitted. Waiting for the other insurer to accept fault can take weeks, and the client cannot be left without transport while a claims officer works through a queue.

The sequence usually runs like this:

1. Client lodges the claim with the at-fault insurer and provides the evidence pack.
2. The insurer responds with acceptance, a request for more information, or a denial.
3. The referral partner opens the hire on a credit basis, with the rate disclosed and the terms signed.
4. The car is collected from Sydney or delivered to the client's home, repairer or workplace.
5. The provider invoices the at-fault insurer directly and follows up while the dispute runs.
6. If the insurer keeps refusing, the file moves to a solicitor for a letter of demand and, if needed, court.

In practice, most denials soften once the evidence is in front of a claims officer. A denial based on "our driver says you ran the red" often collapses when the client produces footage from the intersection of Oxford Street and Flinders Street. A denial based on "we do not accept the hire rate" is different, and is answered with comparable quotes and the client's own vehicle details.

If the client is in a prestige car, the like-for-like rule matters. A 2021 BMW M3 Competition G80 with 375 kW and a 3.9-second 0-100 is not replaced by a base hatch. The like for like page explains how the match is assessed, and how credit hire works sets out the credit arrangement.

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When a solicitor should be involved

Most disputes never need a solicitor. A clear evidence pack, a disclosed rate and a polite follow-up will move the file. But there are triggers that should send the matter to a solicitor immediately.

• The at-fault insurer has denied liability in writing and will not review new evidence.
• The other driver is uninsured, unregistered or cannot be identified.
• The other driver left the scene and the police are investigating.
• The client was injured, even mildly. Personal injury and property damage are separate claims and should be run separately.
• The hire has run for months and the insurer is ignoring correspondence.
• The client is a business and the downtime is affecting contracts or staff.
• The at-fault insurer is threatening to recover the hire cost from the client personally.

A solicitor can issue a letter of demand, run the claim in the Local or District Court, and, where appropriate, seek interest and costs. The referral partner keeps the client mobile while that runs. The two roles are complementary, not competing.

For the referral side, see solicitor referral not at fault and insurer disputes hire car claim. General information only; for advice on your own matter, talk to your solicitor.

What happens if the insurer keeps refusing

If the at-fault insurer refuses to accept liability and will not budge, the claim does not disappear. It changes venue.

Stage one is a formal letter of demand from a solicitor, attaching the evidence pack, the hire agreement, the invoices and the comparable quotes. Many insurers settle at this point because the cost of defending exceeds the claim.

Stage two is court. In New South Wales, smaller claims run in the Local Court and larger ones in the District Court. The client, the repairer and the hire provider may each be asked for statements. Dashcam footage and witness statements carry significant weight. The Arsalan v Rixon principles are usually cited on the like-for-like point.

Stage three is enforcement. If judgment is obtained and the other driver does not pay, the usual enforcement options apply.

What the client should understand:

• The hire continues while the dispute runs, provided the evidence supports it.
• The client does not pay the hire cost upfront.
• The client may be asked to sign a statement and, rarely, attend court.
• If the claim fails entirely, the hire provider carries the loss, not the client, under the standard credit terms.

See referral partner no cost to client and credit hire vs referral partner. If you are weighing up whether to book, the common reasons an insurer disputes a hire car claim is worth reading first.

Keeping the repairer informed

The repairer is often the first person the client calls, and the last to hear how the claim is going. That gap causes friction. A referral partner should keep the repairer in the loop on three things: liability status, hire status and expected repair duration.

A simple weekly update works. One line per client: liability accepted, disputed or pending; hire open or closed; estimated completion date. If the repair is waiting on a part from Germany or Japan, the hire needs to extend, and the insurer needs to know why. Prestige repairs in Sydney often run longer than the insurer's initial estimate, particularly for aluminium-bodied cars or vehicles needing calibration after ADAS work.

Repairers also need to know what the hire partner needs from them: a repair authority, an estimate, progress photos, and a completion date that is realistic. The what repairers need from a hire partner page sets this out, and how long prestige car repairs take in Sydney gives realistic timeframes.

For prestige specialists, the matching matters. A Mercedes-Benz S500 L with 335 kW and 700 Nm is a long-wheelbase luxury sedan, and the replacement should reflect that. The referral partner for prestige repairers page covers the workflow.

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What the client pays if the dispute drags on

Under a standard credit hire arrangement, the client pays nothing upfront. The bond equals the excess the client chooses, and it is refunded when the car is returned in the same condition. The rate, the bond and every fee are shown on the car's page before payment. Paying by card carries a small surcharge; bank transfer and cash on the rental do not.

If the dispute drags on for months, the client's position does not change. They keep the car, they keep driving, and the provider carries the cost of recovery. What can change is the insurer's willingness to pay the full rate. That is where comparable quotes, the client's own vehicle details and a clean evidence pack do the work.

Two practical points. First, the client should keep the hire reasonable. A prestige owner is entitled to a comparable car, but not to a car far beyond their own. Second, the client should not sign anything from the at-fault insurer without reading it. A release or a settlement offer can end the hire claim.

If the client is a business, downtime has a cost beyond the car. See business and fleet and turnaround times for replacement cars. For area-specific delivery, see replacement by area.

The referral partner's role in practice

A good referral partner does four things well. They answer the phone on a Saturday morning after a prang on the Cahill Expressway. They match the car properly. They disclose the rate before the client signs. And they keep the repairer, the broker and the solicitor informed without overpromising.

They also know when to hand over. A liability dispute that has run three months without movement is a solicitor's file, not a hire company's. A repair that has stalled because of a parts delay is a repairer conversation, not an insurer fight. A client who is being pressured to settle cheaply needs advice, and that advice should come from a solicitor, not from the person supplying the car.

For brokers, the referral is a service to a client who will remember who answered the phone. For solicitors, it is a way to keep the client's loss running while the claim is built. For repairers, it is a way to keep the bay turning over without the client chasing them for a loan car.

If you are setting up or reviewing a referral arrangement, start with partners and referrals, referral partner for brokers and referral partner vs rental company. To book a car for a client, use accident replacement car Sydney or not at fault accident replacement.