Car accidents and credit hire agreements

A motorist whose car is damaged by the negligence of another may recover for the loss suffered, but must take reasonable steps to mitigate that loss. Where a replacement car is hired the charges can be recovered, if the car is needed for use and is similar to the damaged vehicle. Real difficulties arise if the motorist hires on credit. The agreement must comply with regulations applicable to credit agreements and constitute an enforceable contract, and, even then, full recovery of the charges is possible only if the motorist is impecunious. In spite of attempts to calm conflict over these matters, credit hire has prompted a flood of litigation that has often confused issues and created difficult distinctions, which, in turn, have increased tensions in the industry and caused bafflement among motorists.