How Does Courtesy Car Insurance Work? UK Guide

If your car ends up in the garage after a bump, being left without wheels for days or weeks can be a real headache. That is where a courtesy car comes in. But there is a lot of confusion about how the insurance side works, what is covered, and when you are entitled to one at all. So how does courtesy car insurance work? This guide explains it in plain English, including the conditions that catch people out.

How does courtesy car insurance work?

A courtesy car is a temporary replacement vehicle your insurer or their approved repairer provides while your own car is being repaired after a claim. The cover for it is arranged for you as part of that repair process, rather than coming from your normal policy in the way you might expect. In most cases it is included with comprehensive insurance, with industry analysis suggesting more than 90% of comprehensive policies offer a courtesy car after an accident as standard. If you only have third party, or third party fire and theft cover, it is usually not included, although you may be able to add it.

Is a courtesy car covered by my own insurance?

Not in the way your own car is. Your standard policy insures the specific car named on it, so it does not automatically extend to other vehicles. The courtesy car is instead covered through the arrangement set up by your insurer or the repair garage. This is an important distinction, because it means you should never assume you are insured to drive a replacement car. You will normally be told the cover is in place before you drive away, and it is worth confirming exactly what that cover includes.

What level of cover does the courtesy car have?

This varies between insurers and is one of the things people most often get wrong. Many policies insure the courtesy car to the same level as your own, so if you have comprehensive cover with named drivers, you can usually expect the same on the temporary car. Others, though, only provide third party cover on the courtesy car even when your main policy is comprehensive. Third party means you are covered for damage you cause to other people and their property, but not for damage to the courtesy car itself.

You should also expect an excess to apply if you damage the courtesy car. Sometimes this is your normal policy excess, and sometimes the insurer or repairer sets a specific courtesy car excess. Check both the cover level and the excess before you take the keys.

Who can drive the courtesy car?

Usually you, as the policyholder. Named drivers on your main policy are often allowed to drive the courtesy car too, but not always, so this is another thing to confirm. There may also be conditions such as a minimum age, and provisional licence holders are often excluded. One practical catch is the gearbox: courtesy cars tend to be manual, so if you only hold an automatic licence your options may be limited. Remember too that the rules for driving a car that is not your own can be stricter than people expect, as we explain in our guide on whether you can drive someone else's car.

When you will and will not get a courtesy car

Even with the cover included, a courtesy car is rarely an absolute guarantee. The common conditions are:

• Approved repairer only. The benefit is usually tied to using your insurer's approved repair network. Take your car to your own local garage instead and you often lose the right to a courtesy car.
• Subject to availability. Most policies include a clause meaning you only get a car if the repairer has one free at the time.
• Time limited. You typically only keep the car for the duration of the repair, with a cap that is often between 14 and 30 days.
• Repairs only, not write-offs or theft. A standard courtesy car is for while your car is being repaired. If your car is written off or stolen, you usually do not get one unless you have hire car cover.
• Some claim types excluded. Glass-only claims, for example, often do not come with a courtesy car.
• Lower cover, no car. With third party cover you usually will not get a courtesy car for a collision judged to be your fault.

What kind of courtesy car will I get?

The standard courtesy car is designed to keep you mobile rather than match your own vehicle. In practice that usually means a small, basic, one litre three door hatchback, the kind of car insurers class as a small or "Class A" model. It will not normally be the same size or specification as your own car. If you need something bigger, for example for a family or for work, you would have to add like-for-like or enhanced courtesy car cover, which provides a similar vehicle to yours.

Courtesy car cover versus hire car cover

These two get mixed up, but they are not the same. A standard courtesy car covers you only while your car is being repaired after a collision. Hire car cover, sometimes called a guaranteed replacement car, goes further. It guarantees you a vehicle even if the repairer has none available, it usually provides a like-for-like car, and it covers you when your car has been written off or stolen, for a limited period that is often 14 or 28 days. If being without a car is not an option for you, hire car cover is the add-on worth considering.

What about a non-fault accident?

If the accident was not your fault, the picture changes. Rather than a courtesy car from your own insurer, you may be offered a replacement vehicle through the at-fault driver's insurer or a claims management company. This is often called a credit hire vehicle, and it is frequently a like-for-like car rather than a basic hatchback. It works differently from a standard courtesy car, so make sure you understand the terms before accepting one.

Your responsibilities when using a courtesy car

You will usually sign an agreement when you collect the car, and it pays to read it. In general you are responsible for any parking or speeding fines you pick up, you must return the car in the same condition apart from normal wear and tear, and there may be a mileage limit. If you damage it, you pay the excess, and a courtesy car claim is treated separately from your main claim, which means you will need to declare it when you next buy insurance. Courtesy cars also tend not to be covered for use outside the UK.

The simplest rule is to check the detail with your insurer before you drive off: the level of cover, the excess, who can drive, and how long you can keep it. A two minute conversation saves nasty surprises later. For the official basics on the levels of car insurance cover, MoneyHelper has a clear guide to car insurance.