Do you routinely decline the over-the-counter insurance when you rent a car? If you get in an accident and you haven’t purchased over-the-counter Collision Damage Waiver (CDW), the company can charge you for the cost to repair the vehicle. It can also charge Loss of Use fees to recoup forfeited revenue while the car is in the shop. After all, the time when the car being fixed is lost for the rental company.
On the surface, that may sound reasonable. But in practice, these fees can add up to ridiculous sums. The problem has worsened during the pandemic, for two reasons. First, the longterm car shortage has sent rental car prices soaring. That means you’ll pay more for every day the car is out of service. Second, the car will likely be in the shop for longer, since many auto repair shops are backed up waiting on parts. As Indiana’s 13News reports, these days the Loss of Use fee can easily add up to thousands of dollars.
Worse yet, Loss of Use can become a quagmire because these fees are not always covered by personal auto insurance and credit card protection, so they can take renters by surprise. Here’s what you need to know.
The Car Rental Loss-of-Use Loophole
If you decline CDW because you believe you are covered through your personal auto insurance or credit card, getting slapped with Loss of Use fees can come as a shock.
Loss of Use is a murky surcharge, as the laws vary from state to state. Some states—including New York and Wisconsin—do not allow rental car companies to charge Loss of Use fees. In other states—including Colorado and Texas—there are legal precedents upholding the rights of the rental car companies to charge them.
The most surefire way to protect yourself is to buy the Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) sold over the counter, but it will be pricey and may not be the most cost-effective solution.
Personal Auto Insurance and Car Rental Loss of Use
Most major insurers cover rental car collision damage but not Loss of Use, the 13News investigation found. Call your insurance company and double check rather than assuming you are covered.
Credit Cards and Loss of Use
Some credit cards will cover you for Loss of Use fees.
Do you have a Visa card? Consider using it for rentals cars, thanks to its CDW that includes Loss of Use Not that this is secondary coverage, so it kicks in after your auto insurance deductible is met.
If you have a card with primary coverage, use that one to book your rental cars. If there’s an accident, you don’t have to report it to your auto insurance company and take a hit on your premiums. As of early 2018, these include premium cards such as Chase Sapphire Preferred, Chase Sapphire Reserve, United MileagePlus Explorer, United MileagePlus Club, Ritz-Carlton Visa Infinite and the JP Morgan Reserve card.
If you have any American Express card, you can get primary coverage by enrolling in Amex’s premium rental car protection program. You’ll pay a flat rate of $12.25 to $24.95 per rental, which is cost-effective on rentals of more than a few days and will offer peace of mind.
Premium Credit Cards That Offer Premium Car Rental Benefits
One caveat: Even if your credit card covers Loss of Use, the resolution process can be long and drawn out. Credit cards that offer primary coverage rely on the rental car agencies to provide documentation—typically a “fleet utilization log” that documents the actual lost revenue while the damaged car was out of service. Problematically, rental companies often refuse to provide these logs, as they deem them confidential. So the rental car company and your credit card company can get mired in a blame game, leaving you the hook for the bill.
The bottom line is that some credit card policies have your back and others do not. Know which kind of card is in your wallet and choose accordingly.
How to Fight a Claim on a Rental Car
If a rental car company charges you a steep Loss of Use fee, here’s how to fight it:
- Enlist your auto insurance company for help. Insurance companies hate junk fees, are good at arguing claims and often take a dim view of Loss of Use fees. Your insurance company might be able to pressure the rental car company to drop or decrease the fee.
- Demand documentation. Just because the rental car company says it has lost $900 in revenue doesn’t mean it can prove it. Demand to see records of the rental, the repair bill and proof that the car would have been otherwise rented. If the company refuses to show you the paperwork, you will have a strong case in a credit card dispute.
- Threaten to sue. This is one of those rare times when the threat of a lawsuit may offer an escape. Unless you’re renting in Colorado or Texas (another state with loss of use precedents), the company will be reluctant to litigate for fear of setting a precedent for future loss of use cases.
Frequently Asked Questions
How do I document any pre-existing damage to the car rental?
Make sure you have all available documentation, including photos of the damage. You can ask the agent for assistance if the damage is not obvious. You may need to pay extra for an inspection if there is any damage.
Can I rent and drive in Europe with a car?
Yes, you can. You will need to book a tour and pay each day separately. There are plenty of companies offering these types of tours.
If you’re looking for greater flexibility, consider renting a car through one the main travel agencies. These agencies often offer a variety of services including car rentals and transfers within the city.
They often work with local suppliers who specialize in providing quality vehicles and competitive prices.
What is the average daily price of a European rental car?
We are not sure, but it seems to be somewhere between $100-200 daily.
We recommend that you rent at least two days because there are many attractions and activities.
If you stay longer, you might want to consider buying a vehicle that would cost around $2000-$3000.
This will allow you to travel freely around Europe.
It’s also worth looking into whether your credit card company offers any rental discounts.
Where is the most convenient place to rent car?
The most common places to rent cars are airports, rental agencies, hotels, etc.
The most common way to find an airport location near you is by using online travel sites such as Expedia or Priceline.
If they have locations near your home, you might also consider local rental agencies. These are often cheaper and easier to use than booking directly on an airline site.
Consider using public transportation if renting a car in a shorter period of time than two weeks. You could take advantage of city-wide bus passes, which allow unlimited rides within a certain area.
You may be able rent a convertible if you are traveling with kids. Some people prefer them because they provide more protection for their kids.
Is Chase Sapphire covered for car rental insurance in Ireland
Yes, your vehicle can be insured for an additional EUR15 daily. You can also access a wide range of optional extras, including breakdown assistance, theft insurance, and personal accident insurance.
With a US driving license, can you rent a car anywhere in Europe?
It depends on which country you are visiting. You can rent cars in France if you’re going to France. However, it’s not possible to rent cars in Italy if you’re visiting the United States.
Statistics
- Automatics are more expensive (usually about 50 percent more) and may only be available if you upgrade to a bigger, pricier car. (ricksteves.com)
- In 2019, the most crucial factor is the cost and fees of the rental (accounting for 28% of overall satisfaction with the rental experience), followed by the rental car itself at 25% and the pick-up process at 23%. (cnet.com)
- If you’re a member of AAA, you might also be able to snag discounts of 10 percent at Thrifty, and 8 percent at Dollar. (afar.com)
- American Airlines, for example, offers AAdvantage members 35% off Budget and Avis — but you need to rent from an airport. (nerdwallet.com)
- You can rent an automatic but these cars can cost as much as 50% more than a manual vehicle. (earthtrekkers.com)
External Links
avis.com
alamo.com
autoslash.com
jdpower.com
How To
10 Tips on How to Rent a Car Cheapest
Renting a car to move around in your local area is one of most affordable options. You can find many companies offering services online and offline. There are many companies that offer different services, so it is important to know which type they offer before you rent a vehicle. You can choose private cars, vans, minivans, SUVs, luxury cars, etc. Some companies offer special rates to two people travelling together. It is a good idea to read online reviews before you choose a company to rent a car. Book your car rental at least one month in advance to save money. You won’t have to pay any extra for booking last-minute. It’s always worth comparing prices between companies.
Don’t forget about checking if your company requires insurance.
If you’re going to drive yourself, be sure to have enough gas. Companies charge higher prices per gallon. Traffic jams can occur when driving out of major cities. If this happens, public transportation might be an option. It is easier to take a cab or a shuttle bus if you have much luggage. Make sure you hire a reputable taxi company before you take the cab. Ask for references, and read customer reviews.
Remember that car rental agreements usually stipulate a mileage limit. Make sure you read the contract thoroughly and check whether you can exceed this limit. You should understand the cost of each mile.
Many companies will allow you to use their GPS navigation system free of charge, but you might need to pay more for satellite radio.
Also, you might not get your vehicle back until after certain hours. Take care not to leave anything in the car.
Bring your driver’s license, passport, credit card, and proof that you have insurance. Fill out all paperwork correctly. Within minutes, you will receive an email confirmation with information about the pickup time and date. After picking up the car, drive safely and follow the instructions.
Once you reach your destination, make sure to park your rental car in a safe place. Many companies require you to drop off the keys at the office. Keep the receipt handy in case of misplaced keys. Return to the office once you are done. Then, you can finally enjoy your vacation!
