Rental Car Damage: Sorting Through the Claims and Hidden Fees

Have you ever faced a situation where your rental car was damaged due to an unfortunate incident, such as a collision with an animal, and you were left paying unexpected charges well beyond the actual damage? If you've encountered this situation with a company like Hertz, you're not alone. In this article, we will break down the various charges and fees levied on you following such an incident, and explore whether such charges are typical and if your auto insurance should have covered more.

Understanding Rental Car Damage Claims and Fees

A recent experience with Hertz highlights the complexities of dealing with rental car damage claims. After a car rented from Hertz was hit by a deer, the company requested a large sum of money for expenditures including physical damage, loss of use, diminution of value, and administrative fees. However, the auto insurance the renter had only covered the first charge.

This scenario raises the question of whether such charges are typical and if your auto insurance should cover more. While it's essential to be aware of the risks and costs associated with rental car damage, it's also important to understand if these charges are justified and if you have coverage options beyond your standard auto insurance.

Comparing Insurance Coverage for Rental Cars

The renter in this case had a specific hire car excess annual insurance cover, which they had purchased to protect against unexpected charges. Unlike standard auto insurance, which typically covers the physical damage to the vehicle itself, this additional insurance covers other charges such as loss of use and diminution of value. These additional charges represent added risk, which may explain why the premium is likely higher than a standard auto insurance policy for personal vehicles.

The generous coverage offered by the annual insurance means that the rental company likely takes a higher initial amount (15k GBP) as a security deposit in cases of damage or loss. This security deposit can be refunded if the actual losses or costs are less than the stated amount. The renter's claim that the rental company has a disincentive to refund any of the charges is valid, as they benefit from keeping the security deposit until the claim is resolved.

For those who do not have this additional coverage, the rental company's charges may seem excessive and unjustified. However, it's important to note that the total charges requested by Hertz can be broken down into parts, some of which may be valid, while others may not.

Challenges and Disputing Claims

One of the challenges in dealing with these charges is the possibility of disputing them. Again, it's crucial to review the terms and conditions of both the rental contract and your insurance policy. Any additional charges not covered by the insurance or the annual coverage may not be justified.

The analysis of these charges suggests several questionable aspects:

Physical Damage: This charge is likely to be valid for the actual damage sustained by the vehicle. Loss of Use: This fee compensates the renter for the time the vehicle is unavailable. It is reasonable under most circumstances. Diminution of Value: This charge is more contentious. It refers to the reduction in the car's value due to the incident. Given that this is subjective and can vary based on market and individual perspectives, it can be argued that this charge is less valid. Administrative Fees: This fee seems excessive and likely reflects the rental company's efforts to cover their own insurance deductibles.

Given the high costs of legal advice and potential court fees, it's essential to approach this claim with a strategic mindset. Consulting an attorney can provide valuable insight into the legal and contractual aspects of the dispute. Legal advice can help determine if the charges are justified and if you have any grounds for disputing them.

Conclusion

The charges levied by a rental company after a car incident can be complex and challenging to navigate. Understanding the differences between standard auto insurance and additional coverages, such as the annual hire car excess cover, can help in managing costs and expectations. However, disputing these charges often requires careful analysis and legal consultation.

If faced with similar situations, consulting with an attorney and reviewing your insurance policies thoroughly can be invaluable. It's essential to know your rights and understand the terms and conditions of your rental agreements and insurance policies to make informed decisions.