We recently welcomed a new client, not because we offered the cheapest premium, but because we did what his previous broker didn’t: we told him the truth about Insurance Broking.

For the purpose of this blog, we’ll call our new client Mr. X.

Mr. X came to us with questions about a credit hire claim he’d been caught up in. After a non-fault accident, his broker arranged a replacement vehicle but failed to explain what credit hire actually meant, what he was signing, or what the risks were in the context of Insurance Broking.

He had no idea he was personally liable if the costs weren’t recovered through his Insurance Broking arrangement.

The Reality of Outsourced Claims

When the credit hire company’s costs were challenged by the third party’s insurer, they turned on Mr. X, stating he was liable for payment due to his Insurance Broking contract.

To us, that’s a clear sign the broker outsourced the entire non-fault claim to a credit hire company, likely pocketing a £200–£300 referral fee from the Insurance Broking deal and closed the file.

With no one else to turn to, his daughter, who knew us at VINTTRO, asked if we could help. Of course, we did. We reviewed the claim, explained his position and guided him through the process. With our claims expertise and some firm direction, the matter was resolved within four weeks.

This is why choosing the right Insurance Broking service is crucial for policyholders.

That single conversation led to a new client and, hopefully, a long-term relationship built on trust in our Insurance Broking services.

Why Informed Consent is Non-Negotiable

In the fast-paced world of motor claims, especially at the high-value end of the market, speed can lead to shortcuts in Insurance Broking.

At first glance, it seems like a helpful solution: your car is off the road and a replacement appears instantly. But behind the scenes, there is a lot more going on that could leave you financially exposed.

What Is Credit Hire?

Credit hire is the provision of a temporary replacement vehicle on a credit basis, with the understanding that the hire costs will be recovered from the at-fault party’s insurer under the guidance of Insurance Broking.

The Problem: Hidden Agreements

Many insurers and brokers instruct credit hire companies without explaining:

• What credit hire actually is (a credit agreement, not a gift).
• The legal and financial responsibilities involved.
• The implications if the claim is disputed or rejected.
• What alternatives might be available (such as a standard courtesy car).

In many cases, the policyholder believes they are driving a straightforward courtesy car, not realizing they have entered a legally binding credit contract.

Why This Matters

1. Your name is on the line: Credit hire contracts are personal credit agreements. If liability is contested or costs aren’t recovered, the policyholder can be left holding the bill.
2. It undermines trust: In the prestige and specialist market, trust is everything. Finding out you were entered into an agreement you didn’t understand destroys that bond.
3. It may not be the best fit: For those with rare or specialist collections, a standard insurer-provided vehicle or negotiated hire might actually be a safer, more appropriate choice.
4. It complicates litigation: If the opposing insurer disputes the cost (which is common), the policyholder may be dragged into lengthy litigation to prove their “need” for the vehicle.

Understanding these risks is part of responsible Insurance Broking.

At VINTTRO, we believe that Insurance Broking is about more than just selling policies; it’s about proactive advocacy and transparency.

At VINTTRO, we believe that Insurance Broking is about more than just selling policies; it’s about proactive advocacy.

“Anything less than full transparency isn’t just bad service, it borders on negligence and fails the standard of modern Consumer Duty regulationsTherefore, a solid understanding of Insurance Broking is essential for every policyholder.

What Should Happen Instead? A policyholder should be told exactly what is being proposed, what it means in plain English and what their responsibilities are. Only then should an agreement be signed.

We offer full accident management and claims services for all our policyholders. That is the major difference between VINTTRO, run-of-the-mill brokers, and comparison websites. When we set up your policy, we always have one eye on what could happen on the day you actually need to use it.

This underscores the importance of knowledgeable Insurance Broking in navigating such agreements.