Based on reporting by STV News, 21 October 2026. All rights in the original report remain with the publisher.
What was reported
According to STV News, a taxi driver licensed by Perth and Kinross Council had his vehicle damaged in a collision involving an Asda vehicle on 4 February 2024. Asda accepted liability for the damage at the outset, with initial repair estimates putting the work at roughly two weeks and costing just over £3,000.
As reported by STV News, the driver relied on school and social care transport contracts as well as general taxi work, and could not afford to stop working while his vehicle was off the road. He hired a replacement taxi for 162 days at a total cost of nearly £32,000. Perth Sheriff Court heard that much of the delay in authorising and completing the repairs was attributable to Asda's claims handler, who had been made aware that a replacement vehicle was required to protect the driver's business contracts.
STV News reports that Sheriff Alison McKay found the driver had acted reasonably in entering into credit hire and had taken appropriate steps to limit his losses. However, the court found that not all 162 days of hire could be fully justified, and limited Asda's liability to 117 days. The total award came to £23,000, including delivery charges and VAT, with a separate hearing to follow on legal expenses.
Road traffic accident claims in Scotland
When a road traffic collision causes loss or injury in Scotland, the injured or financially affected party may pursue a civil claim for damages. Where liability is admitted by the other party's insurer, as happened in this case, the dispute often moves on to the question of what losses flow from that admitted fault, and whether the steps taken by the claimant to protect themselves were reasonable.
In incidents of this kind, liability often rests with the driver or vehicle operator whose actions caused the collision, and their motor insurer will typically be the party who meets any award. Where a commercial vehicle is involved, the employer or operating company may also bear responsibility through the principle of vicarious liability.
For self-employed workers such as taxi drivers, a collision can cause two distinct categories of financial loss. First, there is the physical damage to the vehicle itself. Second, and often more significant, is the loss of income and the cost of hiring a replacement vehicle to keep the business running. Scottish courts will examine whether each element of claimed loss was a natural and foreseeable consequence of the accident, and whether the claimant took reasonable steps to keep their losses to a minimum. This is known as the duty to mitigate.
Credit hire claims, where a driver takes a replacement vehicle on credit rather than paying upfront, are common in vehicle damage cases. Courts assess whether the claimant genuinely could not afford to fund a replacement vehicle independently, and whether the hire period was no longer than was reasonably necessary. The Perth sheriff court's approach in this case reflects established principles across Scottish road traffic litigation.
Time limits
Under the Prescription and Limitation (Scotland) Act 1973, a person has three years from the date of a road traffic accident to raise a civil claim for personal injury in Scotland. Where the claim relates purely to vehicle damage and financial loss, rather than physical injury, the relevant prescriptive period is five years, though it is always advisable to seek advice promptly before memories fade, evidence is lost, or documents become difficult to obtain.
There are limited exceptions to these time limits. Where the claimant was a child at the time of the accident, the three-year period for personal injury claims runs from their 16th birthday rather than from the date of the incident. Where a claimant lacked legal capacity due to a mental health condition, time may not run until capacity is regained. Courts retain a discretion to allow late claims in personal injury cases where it is equitable to do so, but this is not guaranteed and relying on that discretion is risky.
The strong practical advice is to begin the process well within the relevant time limit, particularly where business losses are ongoing and financial records need to be gathered carefully.
What compensation can cover
In a road traffic claim involving a commercial vehicle operator such as a self-employed taxi driver, the heads of loss that can be claimed are broader than many people realise. They may include:
- The cost of repairing or replacing the damaged vehicle, or the difference in market value if the vehicle is written off
- Credit hire charges for a suitable replacement vehicle during the period the claimant's own vehicle was unavailable, provided that period was reasonable
- Loss of earnings or loss of profit during any period when the claimant was unable to work, supported by financial records such as tax returns and bank statements
- Any additional business expenses incurred as a direct result of the accident
- Where physical injury was also suffered, solatium, which is the Scottish legal term for general damages for pain, suffering and loss of amenity
- The cost of medical treatment, physiotherapy or other rehabilitation
- Travel expenses incurred as a result of the accident or any resulting medical appointments
Scottish courts take a careful, evidence-based approach to each head of loss. Claimants are expected to keep records and to demonstrate that their claimed losses are genuine, reasonable and directly connected to the accident. In the Perth case, the driver's financial circumstances and business contracts were scrutinised in detail, highlighting the importance of thorough documentation.
One practical point worth noting is that some claims services deduct up to 20% of a claimant's compensation as a success fee. Scotland Claims charges a 0% success fee, meaning clients keep 100% of whatever they are awarded.
Frequently asked questions
Can I claim for lost income if I am self-employed and my vehicle is taken off the road after a crash?
Yes. Self-employed workers, including taxi drivers, can claim for loss of earnings or profit caused by a road traffic accident. You will need to provide financial evidence such as tax returns, business accounts and records of contracts to support the claim. A court will assess whether the losses are genuine and directly attributable to the accident.
What is a credit hire claim and how does it work in Scotland?
A credit hire claim arises when a claimant takes a replacement vehicle on credit, rather than paying upfront, while their own vehicle is being repaired or replaced. Scottish courts will examine whether the claimant genuinely could not afford to fund a replacement independently, and whether the length and cost of the hire were reasonable in the circumstances.
What happens if the other side accepts liability but disputes the amount owed?
It is common in vehicle damage and financial loss cases for liability to be admitted while the extent of the losses remains contested. The case then focuses on what losses the accident actually caused, whether the claimant took reasonable steps to limit those losses, and whether each element of the claim is supported by evidence. A sheriff court will make findings on each disputed element.
How long do I have to make a road traffic accident claim in Scotland?
For personal injury claims, the Prescription and Limitation (Scotland) Act 1973 sets a three-year time limit running from the date of the accident. For pure financial loss or property damage claims, the period is generally five years. It is strongly advisable to seek advice as early as possible rather than waiting until the deadline approaches.
Will I have to pay a percentage of my compensation as a success fee?
Many Scottish personal injury firms deduct up to 20% of a claimant's award as a success fee. However, not all firms operate this way. Scotland Claims charges a 0% success fee, so clients receive 100% of any compensation awarded, with no deduction taken from the settlement or court award.
Based on reporting by STV News, 21 October 2026. All rights in the original report remain with the publisher.