Imran, The Credit Hire company will immediately cover the cost and claim it back from the third party insurance (the person who hit you).
In the case the third party insurance will not pay out then your insurance will cover the cost. The cost of the hire car will not be coming out of your pocket directly. (Although any claim will result in an increased renewal cost).
As an aside, if you call your insurance company to ask whether it’s worth claiming or to discuss any minor accident and then do not continue with a claim, it is still considered one and is a termed a ‘Non claim incident log’. This will increase a renewal cost. Mad I know but as I always say, motor insurance is legalised theft.
? I will be remembered for nothing but had great fun doing it ?