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Insurance Law Monthly

Replacement vehicles

The litigation on the recoverability of the costs of hiring a replacement vehicle shows no sign of abating. In the latest contribution to the learning on this subject, Sayce v TNT (UK) Ltd [2011] EWCA Civ 1583, the Court of Appeal has confirmed that there is no obligation on the victim of a road traffic accident to accept the offer of a replacement vehicle from the defendant rather than obtain a vehicle for him or herself.

Sayce: the facts

On 30 May 2007 CS’s car was damaged by a vehicle belonging to TNT. At the scene of the accident the TNT driver gave CS a card which asked her to contact TNT as soon as possible. She telephoned them later that day and they offered to provide a courtesy car. They also drew her attention to the card itself, which stated that if she ignored TNT’s offer and hired a vehicle of her own, it could affect her entitlement to recover damages representing the hire costs. CS contacted her insurers and took the decision not to take up TNT’s offer. She accordingly hired a car under a credit hire agreement.

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