The High Court has decided, in a series of test cases all argued together, that a not at-fault driver can recover the costs of a rental car for the period their vehicle is off the road being repaired, from the at-fault driver (and any insurer).

The High Court concluded that the not at-fault driver was entitled to mitigate their losses and one of those losses was general damages for the loss of use of the vehicle during the period it was being repaired.  The cost of a reasonable rental car, of a similar class, during that period was an expected and reasonable mitigation of the loss and was therefore payable by the at-fault driver (and their insurance company).

The High Court also found that the at-fault driver was liable to pay for the delivery and taking away of the rental car.

Alan Knowsley

Insurance Lawyer Wellington