Does repair time change the not at fault hire car bill?

The short answer: the at-fault insurer pays for a reasonable period, not an indefinite one

The at-fault insurer's liability for your replacement car hire is limited to a reasonable period. It is not tied to the actual repair time. If your car is off the road for three months because a part was on backorder, the insurer is not automatically liable for three months of hire. The question is whether the whole of that period was reasonable in the circumstances.

In New South Wales, the leading authority is Arsalan v Rixon (2021) NSWCA 12. That decision confirmed that a not at fault driver can recover the reasonable cost of hiring a replacement vehicle, and that the measure is the cost of hiring a comparable car, not a cheap substitute. It also made clear that the hire period must be reasonable. Reasonableness is assessed objectively, looking at what a sensible person in your position would have done.

So the bill does change with repair time, but not in a straight line. A repair that runs long because a prestige part has to come from Germany may be reasonable for part of the delay and unreasonable for the rest. The insurer will look at when the part was ordered, whether a faster option existed, and whether you kept the pressure on.

The practical point: you cannot simply leave the car with the repairer and assume the at-fault insurer will keep paying. You need to be able to show that each week of hire was justified. That is the difference between a hire bill that gets paid and one that gets disputed.

What 'reasonable' means when a prestige car needs a specialist part

Prestige and performance cars are not Commodores. A Porsche Macan bumper, a BMW M carbon bonnet or a Mercedes-AMG adaptive headlight may not be sitting on a shelf in Sydney. Parts often come from a central warehouse in Melbourne, then from the manufacturer overseas. That takes time, and the at-fault insurer is expected to accept a reasonable delay for a specialist part.

But reasonable does not mean open ended. A few things shift the line:

• Whether the part was ordered promptly. If the repairer sat on the quote for ten days, that delay is not reasonable.
• Whether a genuine alternative existed. A used or aftermarket part might be available, but it may not be appropriate for a prestige car. Insurers sometimes argue it is. That argument is weaker where the car is under manufacturer warranty or is a leased vehicle with return conditions.
• Whether the delay was avoidable. If the repairer could have fitted a temporary fix to keep the car drivable while the part arrived, the hire period may be cut back.
• The nature of the car. A 2024 Range Rover Sport D300 SE Dynamic with adaptive suspension and specific trim is not the same as a base model. Like for like matters, both for the replacement car and for the repair standard.

Where a part is genuinely unavailable, the insurer usually accepts the delay. Where the delay is caused by poor communication or a repairer who did not chase the order, expect a fight. Good documentation is what separates the two.

How repairers, assessors and hire companies actually document the delay

Insurers do not pay on stories. They pay on documents. The file that supports a long hire period usually contains:

1. A repair authority and booking date. This shows when the repairer was authorised to start.
2. A parts order confirmation. An email or system screenshot showing the part was ordered, from whom, and the expected arrival date.
3. Backorder notices. If the manufacturer or supplier has pushed the date, that notice goes on the file.
4. Progress notes. A short weekly note from the repairer saying what happened that week and what is next.
5. Assessor reports. The insurer's assessor may inspect the car and confirm the repair is still in progress.
6. Hire invoices. These should match the hire period and show the daily rate, the car supplied and the dates.

If you are in a credit hire arrangement, the hire company usually manages this documentation. That is part of what you are paying for. The hire company will correspond with the insurer, provide the hire agreement and invoices, and keep a record of the repair timeline.

If you are paying for the hire yourself and claiming it back, you carry the burden. Keep every email. Ask your repairer for a written update every Friday. If the insurer asks for proof of the delay, you should be able to send a one page summary with dates and attachments the same day.

When the file is thin, the insurer will argue the hire period was too long. When the file is complete, that argument is much harder to run.

When a delay is the insurer's fault and when it is the repairer's

Not all delays are equal. The at-fault insurer is more likely to pay for a delay it caused. It is less likely to pay for a delay caused by your repairer's poor management.

If the insurer is slow to authorise, keep a record of every call, the date, the time and the person you spoke to. If the repairer is slow, ask them directly what is happening and put it in writing. A repairer who cannot explain a two week gap in the file is a problem.

If your car is at a prestige specialist in, say, Alexandria or Brookvale, capacity can be tight. That does not automatically make the delay the insurer's problem. But if the insurer's own conduct added to the delay, the hire period is more defensible.

What you should do if your repairer says four weeks and it becomes twelve

This is the most common call we get. The repairer quoted four weeks. Week four arrives, then week eight, then week twelve. The hire car is still on the road and the at-fault insurer has gone quiet.

Do these things, in this order:

1. Get the revised date in writing. Ask the repairer for an email stating the current expected completion date, the reason for the change and what is outstanding.
2. Ask what has actually been done. A repairer who says the car is waiting on a part should be able to show the order and the backorder notice.
3. Tell the insurer. Send the revised date and the reason to the at-fault insurer's claims contact. Do not wait for them to ask.
4. Keep the hire going, but check the rate. If the hire period is stretching, make sure the daily rate is still reasonable for the car you have. A long hire at a high rate attracts more scrutiny.
5. Consider whether the car should be moved. If the repairer is the problem, moving the car to another specialist may shorten the overall delay. That decision needs to be made early, not in month three.

If the delay is caused by the insurer, say so in writing. If it is caused by the repairer, say that too. Pretending the delay is the insurer's fault when it is not is the fastest way to have the whole hire claim disputed.

For a broader look at the timeline, see our guide to how long prestige car repairs take in Sydney.

The difference between loss of use and physical inconvenience

There are two separate things a not at fault driver can claim when their car is off the road. They are often confused.

Loss of use is the value of being deprived of your car. In practice, it is measured by the reasonable cost of hiring a comparable replacement. If you hire a car, the hire invoice is the evidence of that loss. If you do not hire, you may still be able to claim a modest amount for loss of use, but it is harder to prove and usually much smaller.

Physical inconvenience is a separate head of damage. It covers the inconvenience, distress and discomfort of being without your car, over and above the cost of hiring. It is not a hire bill. It is a general damages claim, and it is usually modest. In Arsalan v Rixon, the Court of Appeal discussed both, and confirmed that a plaintiff can recover for loss of use even without actually hiring, but the amount must be reasonable.

Why does this matter for repair time? Because a long repair increases both. The longer you are without the car, the more hire you may need and the more inconvenience you suffer. But the insurer will scrutinise the hire period more closely than the inconvenience claim. If you are claiming months of hire, the documentation needs to be strong. If you are claiming inconvenience only, the amount is usually small enough that it is not worth a fight.

If you are unsure which applies, get advice. A solicitor who does motor vehicle property damage work can tell you quickly.

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How to keep the hire defensible if the insurer disputes the length

Insurers dispute hire periods all the time. They argue the period was too long, the rate was too high, or you should have accepted a cheaper car. Here is how to make your position stronger.

• Hire a comparable car, not a better one. If your car is a Mercedes-Benz S500 L, a comparable replacement is a large luxury sedan. Hiring a Ferrari would be a problem. Hiring a Corolla would also be a problem, because it is not like for like.
• Keep the hire rate reasonable. The rate should reflect what it actually costs to hire that class of car in Sydney. If you are using a credit hire company, the rate is usually set by the hire company and disclosed in the agreement.
• Do not hire for longer than you need. If your car is repaired and ready, return the hire car promptly. Every extra day is a day the insurer can argue about.
• Keep the repair moving. A paper trail showing you chased the repairer and the insurer helps.
• Respond to the insurer promptly. If they ask for documents, send them. Silence looks bad.

If the insurer says the period was too long, ask them to identify which days they say are unreasonable and why. Often the dispute is about a specific block of time, not the whole hire. That can be resolved with a targeted response.

For more on this, see insurer disputes hire car claim.

Where to get the paperwork checked before you sign anything

Before you sign a credit hire agreement or accept a settlement that includes hire costs, get the paperwork checked. This is not legal advice, and we are not your solicitor, but we can tell you what we see go wrong.

Common problems:

• Signing a hire agreement without understanding who is liable if the claim fails. In a credit hire arrangement, you are usually liable to the hire company if the at-fault insurer does not pay. That is the trade off for not paying upfront.
• Accepting a cash settlement that includes a hire component without checking the hire period is fully covered. Once you sign, it is hard to reopen.
• Not checking the hire rate against the market. If the rate is high, the insurer will argue it down.
• Not keeping the repair file. If the insurer disputes the period, you need the repairer's records.

If you are in a credit hire car, the hire company should be managing the claim and the correspondence. If you are paying yourself, you need to be organised.

If you want the hire arranged and the paperwork managed, you can book an accident replacement car in Sydney through Drive Tribe. Bookings are fulfilled by Drive Tribe (drivetribe.com.au), and this site is part of that group.

If you need a solicitor, ask for a referral. We work with firms who do this work daily. See our partners and referrals page.

What to do in the first 24 hours if you think the repair will run long

The first day matters more than people think. If you suspect the repair will be lengthy, set the file up properly from the start.

1. Report the accident to the police if anyone was injured or the other driver failed to stop. For property damage only, you still need to exchange details.
2. Notify your own insurer. Even if you are not at fault, your policy usually requires notification.
3. Get the other driver's details. Name, address, licence number, registration, insurer and claim number if they have it.
4. Photograph everything. The damage, the position of the cars, the road, the weather, any skid marks.
5. Get the car to a repairer you trust. You are not obliged to use the at-fault insurer's preferred repairer. You can choose your own, though the insurer may want to assess the car first.
6. Arrange a replacement car early. Do not wait for the repairer to confirm a long delay. If the car is undrivable or unsafe, you need a replacement now.

If the car is drivable but damaged, you may be able to keep driving it while the parts arrive. That can reduce the hire period and make the claim easier. If it is not drivable, the hire clock starts.

For a step by step guide, see first 24 hours after a not at fault accident.

Fleet and business vehicles: the same rules, more zeros

If you run a fleet, a long repair is not just an inconvenience. It is a business cost. A ute off the road for six weeks means lost jobs, hired equipment or missed deliveries. The same reasonableness test applies, but the numbers are bigger and the insurer will look harder.

For fleet vehicles, keep a separate file for each car. Record the date it went off the road, the repairer, the authorisation date, the parts ordered and the expected return date. If you hire a replacement, make sure the hire is documented and the rate is commercial. If you use a credit hire arrangement, check whether it covers commercial vehicles and what the liability position is.

If the vehicle is a write off, the hire period usually ends when the insurer makes a total loss offer or when you accept a settlement. Do not keep hiring indefinitely after a write off decision. See fleet vehicle repair and write off delays.

If you need a replacement car for a fleet vehicle, you can arrange a not at fault replacement through Drive Tribe. They handle the booking and the paperwork.

For more on fleet claims, see business and fleet.

If the repair is a write off, the hire period ends sooner

A write off changes the calculation. Once the insurer decides the car is a total loss, the reasonable hire period usually ends. You cannot keep hiring a replacement car for months while you argue about the write off amount.

In NSW, a statutory write off cannot be re-registered. A repairable write off can, but it needs inspection. If your car is a repairable write off, the hire period may continue while it is repaired, but the insurer will often push for a cash settlement instead.

If you are offered a cash settlement, check whether it includes the hire you have already incurred. If you accept the settlement, make sure it is clear what it covers. Once you sign, it is difficult to claim more.

If the car is a write off, you may need to buy a new car. The hire period should end when you have had a reasonable opportunity to do that. What is reasonable depends on the market. In a tight market, it may take longer. Keep evidence of your search.

For more, see statutory write off NSW: what happens next and cash settlement vs repair not at fault.

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