So You Damaged Your Rental Car

You have everything planned for your family’s vacation. Flights and hotels are booked and suitcases packed, but are you prepared to rent a car? Flustered travelers often become confused about insurance coverage at the counter. It is better to know more before you leave.

Before you rent

If you’re renting a car during your vacation, make sure you understand your insurance coverage before you leave. The Insurance Information Institute (III) recommends that you make two pre-trip calls:

• Call your auto insurance carrier. Determine what’s included in your auto coverage; in many cases, that coverage applies to a rental. Additionally, determine what your auto insurance company will pay in additional costs such as administrative or towing fees. Typical collision and comprehensive coverage might pay for these, but make sure you’re covered.
• Call your credit card company. Credit cards often offer insurance coverage for rental cars, but their protection often only extends to damage to or loss of the rented vehicle and not to personal liability or belongings.

Deals over the counter

The rental company will push additional rental insurance to supplement your regular car and credit card insurance coverage. These options may include a loss damage waiver, additional liability insurance, personal accident insurance, and personal effects coverage.

If you feel your typical insurance is inadequate or you don’t want to risk the hassle of a claim down the road, you should consider one or more of these rental insurance add-ons.

Returning the goods

When you’re ready to head home, make sure to budget some extra time before you leave to spend at the rental car return. It may be inconvenient, but it could cost you if you don’t. It’s a good idea to take the following steps:

• Snap some photos: Get as many photos of the vehicle’s interior and exterior as possible. Note any dings, dents, or scratches. Pay special attention to the car’s windshield, as windshield damage is the most common source of rental claims.
• Talk to someone: Ask an employee of the rental car company to accompany you on a complete evaluation of the vehicle. If everything checks out, have the employee sign the form or give you written confirmation. If no one’s available to inspect the vehicle with you, ask for the name and email of the branch manager and send a message containing the photos you’ve taken.
• Save your documents: Keep your documents and photos for at least six months. It can take the rental company that long to file a claim.

It’s only a scratch

If you damage a vehicle or get caught breaking a traffic law, the process isn’t so simple.

• Smile! You’re on traffic cameras: If you committed a moving violation (i.e. ran a red light), there’s not much you can do. The rental company will forward you the paperwork and probably send you the photos that establish your guilt.
• You know you did it: If you discover a ding or scratch that wasn’t there before, you will probably be liable for damages. When you return the vehicle, you will fill out a claim form to acknowledge the damage and agree to pay for it. If you bought the rental company’s insurance, you are done after this step. Remember, even if it wasn’t your fault, you pay for the damage the car sustains during your rental period.
• They know you did it: If the company discovers damage to the car after you return it, they will send you notification of the damage and ask for your insurance or credit card information. The rental company will then send you an estimate of repair costs and additional fees. Most often these fees include loss of use – you’ll be asked to reimburse the rental company for earnings the company didn’t make while the car is being repaired – and diminishment of value. If you have collision and comprehensive coverage, your policy might cover these fees.
• You know you didn’t do it: When disputing a claim, the more you have in writing, the better. First, send a letter to the company explaining that the damage was not sustained during your rental period. Then, send a more strongly worded email, copying your auto insurance company and attaching any photos you have.
• Signs it’s a scam: If the rental company sends you an unexpected claim that is almost $500 (the average deductible amount), it could be a sign that it doesn’t want your insurance company investigating. Other signs of a scam are claims for normal maintenance or damage to parts of the cars that you don’t normally see.

Most rental car companies wouldn’t dream of accusing you unfairly. But it’s a good idea to play defense right from the start to make sure you’re not saddled with repair costs that shouldn’t be your responsibility.

Source: AutoInsurance