Referral partners with no cost to your client

Who pays for a not-at-fault replacement car

In New South Wales, if another driver caused the crash, that driver owes your client the reasonable cost of putting them back on the road. The law calls this making good the loss. A replacement car is part of that loss when your client needs a car for work, school runs, or the ordinary business of life. The at-fault driver's insurer pays in the end, either directly or by reimbursing a credit hire company.

Your client's own insurer may also help if they have a policy that includes a hire car after a not-at-fault crash. Many prestige policies do, but the limits are often low and the process can be slow. For a car worth replacing properly, a hire that matches the car matters. A compact SUV is not a like-for-like replacement for a Range Rover Sport.

Credit hire is the mechanism that makes this work. A credit hire company provides the replacement car on credit. The client signs an agreement to pay the hire cost, but that obligation is only enforced if the claim succeeds. The at-fault insurer then pays the credit hire company directly. This is why the client is not out of pocket at the time of hire.

If you are referring a client, the key point is that the claim is against the at-fault driver, not your client's own policy. That means no claim on your client's insurance and no impact on their no-claim bonus. It also means the hire is separate from the repair, so the repairer can focus on fixing the car while the client keeps moving.

Why the client is not out of pocket

The client is not out of pocket because the cost of the hire is recovered from the at-fault party. In practice, the credit hire company takes on the risk of recovery. If the claim does not succeed, the client is not pursued for the hire cost, provided they have been honest about the crash and cooperated with the claim. This is the commercial bargain that makes credit hire work.

For your client, the day-to-day experience is simple. They collect a car, use it as they normally would, and return it when their own car is repaired or the claim settles. They do not pay a daily rate, they do not pay a deposit for the hire itself, and they do not wait for reimbursement. The hire company and the insurer sort out the money between them.

That said, the client does sign a credit hire agreement. It is a contract, and it sets out their obligations. Those obligations are usually to tell the truth about the accident, to report any changes, and to return the car when asked. If the client misleads the hire company, the protection can fall away. That is why transparency at the start matters.

If you are a repairer, broker or solicitor, you can reassure your client that a no cost referral does not mean a lower standard of car. It means the cost is redirected to the party who caused the loss. For prestige and performance cars, that often means a similar make and model, not a basic runabout. You can read more about how this works on our how credit hire works page.

The difference between credit hire and paying yourself

Credit hire and paying yourself are two different paths. With credit hire, the hire company provides the car and recovers the cost from the at-fault insurer. The client pays nothing upfront. With paying yourself, the client hires a car using their own money or credit card and then seeks reimbursement from the at-fault insurer. That can work, but it puts the cash flow burden on your client and the recovery risk on them too.

Paying yourself can be simpler for a short hire of a few days, especially if the client has the cash and the at-fault insurer has already accepted liability. But for longer repairs, prestige cars, or disputes about liability, credit hire is usually the better fit. The client is not left chasing an insurer for weeks while also paying for a hire car.

There is also the question of hire rates. If a client pays for a hire themselves, the insurer may later argue that the rate was too high and refuse to reimburse the full amount. Credit hire companies work within accepted rates and have processes for justifying the cost. That reduces the risk of a shortfall.

For your referral, the choice matters because it affects how much admin lands on your client. Credit hire keeps the admin with the hire company. Paying yourself puts it back on the client. Most people who have just been in a crash do not want to become a debt collector. You can compare the two approaches on our credit hire vs referral partner page, or read the Drive Tribe guide at credit hire vs paying yourself.

If your client needs a prestige replacement now, you can check availability at accident replacement car Sydney.

What the client does pay for, if anything

The client does not pay for the hire itself. They may, however, pay for a few things that are not part of the hire cost. The most common are fuel, tolls, and any traffic or parking fines they incur while using the car. Those are normal running costs, and they are the client's responsibility, just as they would be in their own car.

There may also be a bond, which is discussed below. The bond is not a fee. It is a refundable amount held against the possibility of damage or fines. If the car comes back in the same condition, the bond is returned. If there is damage, the bond may be used to cover the excess or repair cost, depending on the circumstances.

If the client chooses to pay by card, there is a small surcharge. Bank transfer and cash on the rental do not carry that surcharge. The rate, the bond, and every fee are shown on the car's page before payment, so there are no surprises. This is part of how a transparent referral partner operates.

Some clients ask about the excess. The bond equals the excess the guest chooses. That means the client can select a higher or lower excess, and the bond adjusts accordingly. It is not a separate charge. It is a security amount that is returned when the car is returned on time and undamaged.

For a business fleet, the same principles apply. The company is not out of pocket for the hire, but it may need to manage fuel cards and toll accounts. You can read more on our business and fleet page.

How the bond works

The bond is a refundable security amount. It is not a fee, and it is not kept by the hire company unless there is a reason. The bond equals the excess the guest chooses. If the client chooses a higher excess, the bond is higher. If they choose a lower excess, the bond is lower. This gives the client control over the amount held.

When the car is returned, the bond is released. If there is no damage, no missing fuel, and no fines, the full amount is returned. If there is damage, the bond may be used to cover the excess or the repair cost, depending on the circumstances and the chosen excess. The client should always check the car with a staff member before and after the hire.

It helps to explain the bond in plain terms. It is like a hotel holding a deposit for the minibar. It is not a charge unless something goes wrong. For a not-at-fault client, the bond is the only amount that might be temporarily held. It is not the hire cost, and it is not an administration fee.

If the client is using a credit card, the bond may be held as a pre-authorisation. That means the amount is frozen, not taken. It is released when the car is returned. If the client pays by bank transfer or cash, the bond is handled differently, but the principle is the same. The rate, the bond, and every fee are shown on the car's page before payment.

For referral partners, it is worth knowing that the bond is a standard part of the hire. It is not a barrier for most clients, but it is a question they will ask. Being able to explain it clearly builds trust. You can read more about transparency on our referral partner transparency page.

What happens if the insurer disputes liability

If the at-fault insurer disputes liability, the credit hire company will investigate and advocate for the claim. The client is not left to fight alone. The hire continues while the dispute is resolved, provided the client cooperates and the claim has reasonable prospects. This is one of the main reasons to use a credit hire partner rather than asking the client to pay upfront.

Disputes can happen for many reasons. The at-fault driver may give a different version of events. There may be no independent witnesses. The insurer may argue the client contributed to the crash. In those cases, evidence matters. Photos of the scene, dashcam footage, witness details, and a police report if attended can all help.

If liability is eventually denied, the credit hire company may not be able to recover the cost. In that situation, the client is not pursued for the hire cost, provided they have not misled the company. That is the risk the credit hire company takes on. It is why they ask detailed questions at the start and why honesty is essential.

For your referral, it is important to set expectations. A dispute does not mean the client loses the car immediately. It means the claim takes longer. The client should keep the hire company informed of any calls or letters from insurers. If the client's own insurer is involved, they should also keep them in the loop.

You can read more about handling disputes on our dealing with insurers page, or about delays on our insurer delays replacement car page.

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Protecting your client from unexpected costs

The best protection is a clear agreement and a transparent process. Before the client signs anything, they should understand the bond, the fuel policy, the toll policy, and what happens if they return the car late. A good referral partner will explain these in plain English, not bury them in fine print.

Here are practical steps to protect your client:

• Check the car's page for the rate, bond, and fees before booking. Everything should be visible before payment.
• Encourage the client to take photos of the car at collection and return, including the odometer and fuel gauge.
• Remind them that fuel, tolls, and fines are their responsibility, as they would be in their own car.
• Tell them to report any incident or damage immediately, even if it seems minor.
• Keep copies of the credit hire agreement and any correspondence with insurers.

For repairers, it also helps to have a direct contact at the hire company. That way, if the repair is delayed, you can update the hire period without the client having to chase anyone. This is part of what makes a referral partnership work smoothly.

If you are a solicitor, you will want to see the credit hire agreement and understand the terms. Our solicitor referral not at fault page covers the details. For brokers, the key is to know that the client's own policy is not affected. Our partners and referrals hub has more.

Finally, choose a partner who is clear about who fulfils the booking. Bookings are fulfilled by Drive Tribe (drivetribe.com.au), and this site is part of that group. That means the service is backed by a real company with a physical presence in Sydney.

How to explain it in one sentence

If you need to explain a no cost replacement car referral to a client in one sentence, try this: "If the other driver was at fault, you can get a replacement car that matches yours, and you will not pay for the hire because the at-fault insurer covers it." That sentence covers the key points: fault, like-for-like, and no cost to the client.

You can adjust it depending on the client. For a prestige car owner, you might add: "We will match you with a similar car, not a basic one." For a fleet manager, you might say: "Your driver keeps moving, and your fleet policy is not affected." The core message stays the same.

It also helps to have a simple next step. For example: "We can arrange the replacement car today, and you can collect it from Mascot or have it delivered." That turns the explanation into action. The client does not have to work out the process themselves.

If you are a repairer, you can say: "While we fix your car, we can put you in a replacement through our partner, and you will not pay for the hire." That keeps the client with you and removes a reason for them to shop around.

For more on how to structure a referral, see our how referral partnerships work page. If you are ready to refer a client, you can start at not at fault accident replacement.

What this means for your referral

For a repairer, broker or solicitor, a no cost referral is a value-add. You are not asking your client to pay for something. You are offering them a solution to a problem they did not create. That builds loyalty and reduces the chance they go elsewhere while their car is off the road.

It also reduces your admin. Instead of fielding calls about hire cars, you can hand the client to a partner who handles the booking, the bond, and the insurer communication. You get to focus on the repair or the claim. The client gets a car that suits their needs.

If you are a prestige repairer, like-for-like matters. A client with a Range Rover Sport will not be happy in a small hatch. A replacement that matches the car keeps them comfortable and preserves your relationship with them. The same goes for performance cars. You can read more on our referral partner for prestige repairers page.

For fleets, the calculation is different. Downtime costs money. A replacement car keeps a sales rep on the road or a manager at meetings. The no cost aspect means the fleet's insurance and cash flow are not disrupted. Our business and fleet page covers this in more detail.

If you are on the Central Coast or in Wollongong, the same service applies. See our pages for Central Coast repairers and Wollongong smash repairers.

When you refer, you want a partner who is transparent and responsive. That is what we aim to be. You can learn more about our approach on our about page or contact us to discuss a partnership.

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