Motor insurance: damage to a vehicle on credit hire

In Armstead v Royal & Sun Alliance Insurance Co Ltd [2024] UKSC 6 the Supreme Court has given its judgment on a long-running issue concerning the measure of damages where a hired vehicle is damaged by a third party. The Supreme Court has reversed the decision of the Court of Appeal [2022] EWCA Civ 497; [2022] Lloyd's Rep IR 627 and has held that credit hire companies claiming through hirers are entitled to compensation for loss of use of a damaged vehicle. The leading joint judgment was delivered by Lords Leggatt and Burrows, with Lord Briggs adding a comment of his own. Lord Richards and Lady Simler agreed with the leading judgment.

Armstead : the facts