Optionclaim has developed a new motor legal protection product designed to accommodate the recent Dimond v Lovell judgment on credit hire.

Launched on October 1, the product provides a fully-insured alternative to credit hire, ensuring clients do not become liable for such costs.

Optionclaim believes the Dimond v Lovell case, and other legal rulings, have shown clients can be liable for the cost of credit hire and repair services and that this is a risk no broker should be forced to accept.

A number of people have already been landed with bills following the legal ruling, with the result that some are considering legal action against their broker to recoup the costs, according to a spokesman for Optionclaim.

In essence, the Dimond v Lovell ruling requires credit hirers to collect the cost of hire charges from the client once the credit period of 52 weeks expires.

This applies even if the hirer has verbally assured the broker that their clients would never receive a bill, even if the claim fails. Optionclaim has tackled this issue with its Complete Accident Protection - this guarantees the client will be indemnified in respect of any legal costs, hire charges and repair costs incurred.

The level of indemnity per claim is up to £50,000 for legal costs and expenses, £10,000 for vehicle hire charges and £10,000 also for vehicle repair charges.

The policy allows for multiple claims within a 12-month period and covers private, commercial and fleet clients in one single price.