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Credit hire in motor insurance litigation

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By DAC Beachcroft

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Published 10 December 2025

Overview

One of the emerging features of motor insurance litigation in 2025 has been the practice of Plaintiff's issuing proceedings in this jurisdiction seeking to recover damages on foot of credit hire agreements entered into by motorists from Northern Ireland who become involved in road traffic accidents in this jurisdiction.

Claims for credit hire have long been a feature of both the UK and Northern Ireland legal landscape, however it is only relatively recently that these claims have come before the courts in this jurisdiction.

It is a prevailing feature of many of the Credit Hire claims coming before the courts in this jurisdiction that not only will the plaintiff / motorist have concluded a credit hire agreement with an AMC (Accident Management Company) but the plaintiff / motorist may also have signed an agreement with a financial company.

 

Cases to date

DACB have been engaged by several motor insurers to contest the claims for credit hire being issued in this jurisdiction. To date, in all claims defended by DACB, no award for damages claimed pursuant to such credit hire agreements has been made by a court.

The claims at the moment have mainly been issued in the District and Circuit Courts and, to date, there has been no written judgment determining the legality of credit hire agreements in this jurisdiction. This is a developing area of jurisprudence and a decision clarifying the situation will be welcomed.