posted 05-09-2005 10:59               

Now you would think everything is great in the world: you get the
letter from Dollar Car Rental. They received there insurance
check but instead of having the car fixed they sale the car at
auction. They now want me to pay 5300.00 on deminished on the car. I have turned everything over to State Farm to deal with.
It seems they expect me to pay for the depreciation on the car
which I do not feel is legal.

I will keep everyone posted.

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john m jones

[This message has been edited by retailman (edited 05-09-2005).]

posted 05-09-2005 11:42               

Actually you were lucky they let you turn the car in without a full payment. They could have required that by the contract you sign. As it is they are within their rights to recover any and all losses that occurred while you had control of the car. If the other company doesn't cover 100% of the value (maybe only the repair but not the lost use, etc) they can and will come back to you for it. They do not have to eat it. Now State Farm should cover the rest if you have that type of coverage (use of rental car) with them as if it were your own car. They will fight the battle with the other drivers company - it isn't up to Dollar to do that either.

Finally if they don't pay all that Dollar thinks they are due (unlikely but it could happen) they are back to you for the balance. Then you would have to go after the other driver. All of this could have been avoided if that idiot hadn't hit you (thats the best way) or if you had extended coverage either through the rental company or your credit card. Thats why that benefit is a good one to have on the card you utilize for car rentals.

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John Chase
Use Email Icon above for contact address

posted 05-09-2005 12:38            

This is scary. Just checked my credit card (Delta skymiles). It states "The Car Rental Loss and Damage Insurance Plan* provides coverage for theft of or damage to most rental vehicles. This coverage is in EXCESS to your other sources of insurance." Is this going to provide coverage in this case ? Seems not, as it is not about damage or loss of use (which should already be paid for by the other company, or by the credit card if it is your own fault), but about depreciation as OP stated.

How many people always buy CDW for US travel ? I never did.

posted 05-09-2005 19:00               

quote:

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Originally posted by retailman:
They now want me to pay 5300.00 on deminished on the car. I have turned everything over to State Farm to deal with.
It seems they expect me to pay for the depreciation on the car
which I do not feel is legal.

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Why are you railing about Dollar. Do you think any other car rental company would have handled it differently? If so, which one?

posted 05-10-2005 06:21               

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john m jones

posted 05-14-2005 22:09               

But this situation is much different. First you need to buy car insurance that covers you with full coverage when driving ANY car. This entails Collision and Comprehensive as well as rental coverage for when your car is disabled due to an accident. An added note when you sign for the "check" from the insurance company usually your rental coverage immediately stops so be sure your car is drivable and in your possesion when you do this.

A good credit card will help with the "excess coverage".

Moral of the story get a GOOD insurance agent with a GOOD insurance company and grill him/her about everything you can think of in the way of coverage. Once you do this, when you have any accidents just send all letters be they threatening or otherwise to the insurance people and let them take care of things. This is what insurance is all about. Yes insurance can be expensive, but it can also be comforting in situations like this.

I started to read my car rental agreement, but who takes their attorney on vacation with them? Rental car companies cover every situation and its all in their favor.

I was on vacation in Orlando some years back, and on the second day, early I might add, I received a call from the rental place saying they gave me the wrong car and I needed to bring it back. After I stopped laughing, I hung up without another word.

posted 05-15-2005 11:31               

GAP coverage is coverage which will pay off a loan in the event your car is totaled. With todays car loans going over 732 months, you're usually upside down on the loan vs value of the car for several years. If the car is totaled, your insurance will pay the total value of the car, not the pay off amount of the loan. Thus, GAP coverage will cover that "gap" between payoff amount and total amount.

In this situation, the car was apparently repairable at a cost lower than the total value of the car. However, Dollar (who is a sister company of Thrift BTW) elected to not fix the car. They also elected to not attempt to sell the car for retail value but instead put it on the auction block. Cars typically sell far below their retail value on the auction block. I believe there is a LOT of wiggle room as to the value of the car and the money Dollar received for making the move they made.

IMO, Dollar will make a lot of threats in an attempt to intimidate you into paying something you most likely do not owe. If you have full coverage on your own vehicle, just do as was previouisly mentioned and turn it over to your insurance company.

Dollar is going to have a tough time with this one unless the insurance company decides it would cost more to fight it than pay the claim. Perhaps the rental car companies are catching onto the game of threaten a court case that will cost a lot to defend in order to get a settlement out of personal car insurance companies. If this is the case, then everyone will be in a LOT of trouble.

As a side note, I recently rented a car from Avis. The collision damage waiver (it's not insurance, they just waive their right to collect from you for a price), would have cost as much as the rental itself. It was $21.99/day. That works out to over $7,000 per year for this coverage if it's purchased every day and ONLY covers collision damage. The additional coverages they offer would run another $6,000 per year. So, essentailly they're asking over $13,000 per year for full coverage on their cars from their renters.

This seems like a HUGE money maker for the rental car compaines to me and this would be an inducement to generate a few stories like the OP's in an attempt to scare everyone into taking out the coverage. There was an thread a month or two back about Budget attempting to charge people hundreds of dollars for ordinary door dings that all cars collect when they are in daily usage.

posted 05-16-2005 15:52               

quote:

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Originally posted by dougp26364:
With todays car loans going over 732 months, you're usually upside down on the loan vs value of the car for several years.

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Wow a 61 year car loan!!! That must be some car.

I am sure you meant 72, 6 years seams more reasonable.

Just a slip of the old finger makes it a completely different statement.