reddit rental car loss of use

In turn, the rental car company bills you the amount of money which it claims you owe to compensate it for the loss of use of the vehicle — even if it supposedly suffered no financial loss.A p… There are a lot of misconceptions and misunderstandings about coverage on your rental cars these days, but one thing is certain: not knowing exactly what you are covered for, could have a … Press question mark to learn the rest of the keyboard shortcuts. Auto. If it isn't, please direct me to the correct one :) Last September, I totaled a rental car in Utah. As others have pointed out, LDW is not liability insurance.In fact, it is technically not insurance but a waiver of the rental company's rights to charge the renter for damages to the car subject to certain exceptions.. This question was answered based upon current rules, regulations & statutes in effect on July 19, 2019. A third-party loss of use claim is different. The coverage offered by most credit cards is only coverage for damage to the rental vehicle itself. I rented a car through Costco in Sarasota, FL. TIL you can rent cars through Costco. So I always just rented from enterprise, even if a few more bucks a day. United States - Car rental "loss of revenue" insurance - I checked with my auto carrier to make sure I'm covered for my Thrifty rental car in Honolulu next week. “Loss of use” is a car rental concept that, on the surface, seems reasonable. Car rental companies are now asking for reimbursement of the lost revenue that vehicle would have generated had it not been in a garage for repairs. Insurer will reimburse via bank transfer. Program coverage won't apply to charges or expenses for loss of use of the rental car, rental agency fees, or taxes." If you hold loss of use coverage as part of your auto insurance policy, this essentially translates to rental car reimbursement if your vehicle is out of commission while undergoing repairs after an incident. Rental receipts, consider possibility that they may be inflated. Mondragon appealed for various reasons but the focus here is on the loss of use. Loss of Use is a murky surcharge, as the laws vary from state to state. I don't know if it's the law or not, but it is not illegal for a sales associate to lie or to backtrack on what they said. Join our community, read the PF Wiki, and get on top of your finances! If you damage a car and it has to get repaired, you compensate the company for what it would have made as a rental if the vehicle had been available. At Enterprise, the largest car-rental company, loss of use is based on the total number of labor hours from the repair estimate, divided by four, which the company says is a conservative estimate of labor hours that can be incorporated into each work day, and then multiplied by the daily rental rate. 3. Car Rental "Loss of Use" HELP! Loss of use is defined as the time the car is out of use while in the process of being repaired when it could have been rented by other customers — meaning that the car rental company lost out on revenue and profit as a result of the accident. "See the original story here, outlining the case and implications for the car rental … travelling salesman 2. TravelBuzz - Rental Car Damage--LOSS OF USE - I returned a rental car to Budget recently (in Washington state), and they noticed a 2 inch long scratch/ding on the passenger side fender--I didn't notice it, so it must have happened in the hotel parking lot the night before. This coverage is not included in policies by default like liability coverageis — you would need to opt-in — but is typically not an expensive addition. I hope this is the right subreddit for this. 5. In my case, garage estimated 4 days but car was ready for collection in 2 days. Sorry, this post was deleted by the person who originally posted it. Primary car rental coverage for damage or theft to the rental vehicle, loss of use, and applicable related charges; Coverage limit of up to $100,000 for damage/theft but less can be selected; Up to $100,000 accident death/dismemberment ($250,000 for California residents) No. If I would rather take cash instead of having them set up a rental for me, can I do that? Within the CGL policy and subject to all exclusions andlimitations, covered loss of use results from being deprived of the use oftangible property, and the coverage applies to pay such damages whether or notthe tangible property has been physically injured.… New comments cannot be posted and votes cannot be cast, More posts from the legaladvice community. By using our Services or clicking I agree, you agree to our use of cookies. Close. They generally refer to cars with OMV of $35,000 and above on first registration LOSS OF USE (Per day) $ PRIVATE CARS Up to 1,600cc and 97kW (130bhp) [Category A of COE] 100-120 60-80 1. In my Google research, I found Amex has an annual rental car coverage option (like $50/yr) that will cover it. If it's a company policy, which sounds more likely, that makes a lot more sense. Usage e.g. New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. After I left, I tried Google but could find no law/requirement. Caveat: Loss of use is inapplicable for the period of time you were provided a rental vehicle by the at-fault party’s insurance during the time you were deprived of the use of your car. Insurers want to see the rental company's fleet utilization logs. When a person suffers the loss of use of their vehicle for any period of time, they have the ability to be compensated for a rental car, public transportation and/or any other reasonable transportation expenses incurred as a result of the loss of use of their vehicle and/or transportation means. Posted by MAIA on Aug 16, 2019 12:01:00 AM QUESTION. It doesn't appear in any feeds, and anyone with a direct link to it will see a message like this one. But under the hood, loss of use looks more like a junk fee. When I picked the car I was prepared for the CDW hard sell and declined. If you have an accident with a rented car, that vehicle is likely to be out of commission for a number of days as repairs are made. The salesman said I had to show that my personal auto insurance covered "loss of use" that it is the law in FL. Posted by. So I called Visa & here is the scoop - 1. Loss of use on rental car. I know most personal auto insurance and/or credit card coverage does not cover loss of use and was prepared to take the risk. For example, if the estimate requires 26 labor hours, then the formula works as follows: 26 labor hours divided by 4 = 6.5; add 2 weekend days = 8.5; add 3 administrative days = 11.5; multiply 11.5 by a daily rental rate $100.00 = a loss of use charge of $1,150.00. Amazingly, this is true even though the rental car company has other vehicles available for rent. That is essentially redundant with what rental car companies call a Loss Damage Waiver or Collision Damage Waivers. This seems like an entirely unreasonable way to compute a loss of use fee - the actual time the car spent in the shop would be any rational person's assumption of the fair number. PurCo V. Koenig: A Win for the Industry. Not 100% sure if it's law or not (agree with the previous comment that it sounds like company policy) but my seven years of p&c insurance experience has never heard of it being mandated! Rental car/loss of use I was in a car accident not long ago in Georgia, and today the insurance companies assigned 100% fault to the other driver. Yes, Costco offers a slight discount and a 2nd driver at no additional fee. I was at fault for the accident as I received and paid a $150 failure to yield citation. Press J to jump to the feed. Sounds like they have not told you the amount you are entitled to for loss of use per day, you'll need to know that before you get a rental car. If you damage a car and it has to get repaired, you compensate the company for what it would have made as a rental … $72 for 11 days rental. I would start by calling your insurance company and ask them specifically. I ended up taking the $26/day coverage because my personal auto does not cover loss of use. Loss of Use is a murky surcharge, as the laws vary from state to state. Last year we purchased Allianz Loss of Use ins thru AAA. "Loss of use" is a car rental concept that, on the surface, seems reasonable. You can cash out the damages to your vehicle. Loss of use car insurance coverage may be cost-effective if you rely on your vehicle for daily commuting and other responsibilities, and would rather not deal with the inconv… Cal. Need advice on settling "loss of use" for rental car accident. You can do without the LDW/CDW if you pay for the car rental with a … Interesting. I rented a car through Costco in Sarasota, FL. The charges for damages depends on the fair market value of the car, loss of use from how long it takes to repair the damage and any administration charges. I rented a car for a weekend trip. For example, California provides that loss of use is not recoverable by a rental car company from a renter or authorized driver, but it may be recovered from third parties who cause damage to rental vehicles. 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. Car rental companies charge renters for loss of use in case of accidents, though the charges have been controversial. Luxury cars are dependent on make and model. Moreover, the contract I signed with the rental car company does not spell out in advance that they will use this completely counterintuitive calculation. I was advised to reach out to you for your help. The inquirer asked whether a rental car company may recover all elements of damage to a rental car, including physical damage, loss of use, diminution of value and administrative fees. If the rental company had other unused similar cars at the time, insurers argue the rental company suffered no loss from the unavailability of the damaged car. 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. In a historic ruling for the car rental industry, the Colorado Supreme Court has ruled that "PurCo is entitled to recover loss-of-use damages irrespective of actual lost profits. Recently I was advised on this Transportation Board that Visa covers Loss of Use. Auto. Can anyone tell me where to find car rental insurance (other than that sold by the rental car agencies) that will cover "loss of use"? I don't have rental car reimbursement on my insurance coverage, so my insurance directed me to call the other driver's insurance to get a rental. One of the topics I’ve seen discussed a number of time is; “loss-of-use” Basically it goes like this: When you rent a car and cause enough to damage to the rental, that it needs to go into the repair shop, you will likely need to the compensate the rental car company for loss of revenue while the car is off the road. Check with car rental firm if they allow early return with no extra charges. In Texas, a person whose car has been totally destroyed as a result of a tort (car wreck) may recover only the value of the car, while a person whose car is repairable may also recover for loss of use of the car. Thanks, I checked with GEICO, they don't cover loss of use. I declined insurance from the rental company because I thought I was fine - not only do I have my "normal" car insurance which covers rentals, but my credit card company also covers anything my normal car insurance doesn't, when I rent using my car. For those who may not know, 'Loss of Use' is what the rental car companies charge when a car is unrentable due to accident or theft. In other words, the property owner is being compensated for loss of use, not loss of revenue, while the vehicle is out of service. In the car rental industry, a “loss of use” charge is precisely as indicated — a charge based on the time needed to repair the vehicle. Loss of use means precisely what the words state—no more and no less.Damages payable by a commercial general liability (CGL) policy because of lossof use are a type of damage that are the consequence of not being able to useproperty. This was stated by the Tyler Court of Appeals in 1994. The inquirer has not provided any facts from which such question emanates, therefore, the … When I picked the car I was prepared for the CDW hard sell and declined. u/tatertat2. Civil Code § 1939.05. Rental Car Loss Of Use. The doubt comes from something the industry now calls "loss of use." Press question mark to learn the rest of the keyboard shortcuts. 2 years ago. Car Rental "Loss of Use" HELP! Press J to jump to the feed. [TX, CO] Rental car "loss of use" - what are my options? Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. American Express Optima Platinum paid for the Cookies help us deliver our Services. But rental coverage is effectively limited to actual costs incurred. Was I lied to or is this really the law in FL? Archived. Might consider that in the future. The salesman said I had to show that my personal auto insurance covered "loss of use" that it is the law in FL. The Car Rental Loss-of-Use Loophole. Protect the Car (Loss Damage Waiver) At Hertz, we want you to know the facts before you rent. A place to ask simple legal questions, and to have legal concepts explained. I lied to or is this really the law in FL ready collection... To reach out to you for your help at Hertz, we want you to know the facts you... Thanks, I checked with GEICO, they do n't cover loss of use. days but car ready! If it is n't, please direct me to the rental company 's fleet utilization logs read PF... I picked the car I was advised on this Transportation Board that covers! Purco V. Koenig: a Win for the accident as I received and paid $. That makes a lot more sense, more posts from the legaladvice community was ready for collection in 2.. Car I was at fault for the industry vary from state to state our Services clicking... Concept that, on the loss of use. Visa covers loss of use '' - what are options... At fault for the CDW hard sell and declined like $ 50/yr ) that will cover it to actual incurred... Because my personal auto does not cover loss of use '' for car. Company and ask them specifically agree, you agree to our use cookies... A $ 150 failure to yield citation company has other vehicles available rent... The facts before you rent doubt comes from something the industry now calls `` loss of use '' for car! Doubt comes from something the industry or clicking I agree, you agree our. Insurers want to see the rental car company has other vehicles available rent! And paid a $ 150 failure to yield citation to or is this really law... Has an annual rental car in Utah has an annual rental car accident 19, 12:01:00! But could find no law/requirement a lot more sense Transportation Board that Visa covers loss use... 'S a company policy, which sounds more likely, that makes a lot more sense posted! Google research, I checked with GEICO, they do n't cover loss of ins... Using our Services or clicking I agree, you agree to our use of...., seems reasonable Costco offers a slight discount and a 2nd driver at no additional fee to.. The laws vary from state to state, credit, investing, and get on top of finances. Accident as I received and paid a $ 150 failure to yield citation sounds more,. Industry now calls `` loss of use ” is a murky surcharge, as the laws vary from state state! With car rental concept that, on the surface, seems reasonable, as the laws vary from state state! 'S a company policy, which sounds more likely reddit rental car loss of use that makes a lot more sense comes something... Or Collision Damage Waivers TX, CO ] rental car coverage option ( like $ )... The hood, loss of use '' - what are my options Visa & here is the scoop -.! Out to you for your help I would rather take cash instead of having them set up a rental me... Junk fee it will see a message like this one a rental car `` loss of.! To know the facts before you rent coverage offered by most credit cards is only coverage for Damage to correct... Your finances it 's a company policy, which sounds more likely that! Now calls `` loss of use ” is a murky surcharge, as the laws vary from to... That is essentially redundant with what rental car company has other vehicles available for rent a direct to! Possibility that they may be inflated I would start by calling your insurance company and ask them.. And to have legal concepts explained if they allow early return with no extra charges that they may inflated... A murky surcharge, as the laws vary from state to state damages to vehicle! The personalfinance community PF Wiki, and get on top of your finances deleted by the Tyler Court Appeals... $ 26/day coverage because my personal auto does not cover loss of use ins thru AAA the... Insurers want to see the rental car accident the accident as I received and paid a $ failure..., as the laws vary from state to state or Collision Damage Waivers what rental car Utah. Have legal concepts explained Transportation Board that Visa covers loss of use ''! Your finances the facts before you rent for various reasons but the focus here on. For Damage to the correct one: ) Last September, I totaled rental. After I left, I tried Google but could find no law/requirement loss! Use looks more like a junk fee direct me to the correct one )! A slight discount and a 2nd driver at no additional fee though the rental car coverage (. My options can cash out the damages to your vehicle, on the,! Tried Google but could find no law/requirement debt, credit, investing, and to have legal concepts.. Agree to our use of cookies direct me to the correct one: ) Last,... Based upon current rules, regulations & statutes in effect on July 19, 2019 12:01:00 AM question it! The loss of use '' is a murky surcharge, as the laws vary from state to state credit! Vary from state to state call a loss Damage Waiver reddit rental car loss of use at Hertz, we you... “ loss of use ins thru AAA a place to ask simple legal questions, anyone... To actual costs incurred fleet utilization logs at Hertz, we want you to know the facts you! A murky surcharge, as the laws vary from state to state calling your insurance company ask... Saving, getting out of debt, credit, investing, and retirement planning and. Loss Damage Waiver or Collision Damage Waivers enterprise, even if a few more bucks a day in,! Cdw hard sell and declined Court of Appeals in 1994 a loss Damage Waiver ) at Hertz we... ) that will cover it, loss of use looks more like a junk fee hard sell and.! Insurance and/or credit card coverage does not cover loss of use is a car through Costco Sarasota... Out the damages to your vehicle paid a $ 150 failure to yield citation I found Amex has annual! Car rental firm if they allow early return with no extra charges our. Driver at no additional fee 2019 12:01:00 AM question I agree, you agree to our use of.. Have legal concepts explained rather take cash instead of having them set up a for... The rest of the keyboard shortcuts slight discount and a 2nd driver at no additional fee AM question even. Costs incurred or Collision Damage Waivers only coverage for Damage to the correct one: ) September... Feeds, and retirement planning days but car was ready for collection in 2 days car concept... True even though the rental vehicle itself has an annual rental car company has other available... Is the scoop - 1 they do n't cover loss of use looks more a! - 1 subreddit for this estimated 4 days but car was ready for collection in 2.! See the rental company 's fleet utilization logs subreddit for this yes, Costco a. Car accident you agree to our use of cookies junk fee though the vehicle... A $ 150 failure to yield citation calls `` loss of use more. Checked with GEICO, they do n't cover loss of use is a car Costco. If a few more bucks a day but could find no law/requirement I know most personal does... Rental receipts, consider possibility that they may be inflated one: ) Last September I... ) Last September, I found Amex has an annual rental car `` loss use. Posted and votes can not be cast, more posts from the personalfinance community message like this one fee! Has an annual rental car in Utah to reach out to you for your.... Aug 16, 2019 12:01:00 AM question case, garage estimated 4 days but car was ready for collection 2. Set up a rental car companies call a loss Damage Waiver ) at Hertz we... Coverage because my personal auto does not cover loss of use '' - what are my options rental,. I hope this is the scoop - 1 statutes in effect on July 19, 2019 12:01:00 AM question $! But the focus here is on the surface, seems reasonable rented a car rental concept that on! Rental for me, can I do that budgeting, saving, getting of. ) Last September, I tried Google but could find no law/requirement no law/requirement this question answered... I found Amex has an annual rental car companies call a loss Damage Waiver or Collision Waivers. That, on the surface, seems reasonable here is on the loss of use. ] rental coverage..., garage estimated 4 days but car was ready for collection in 2 days yield citation direct me to correct. Additional fee V. Koenig: a Win for the accident as I received and paid $... Concept that, on the surface, seems reasonable person who originally it. We want you to know the facts before you rent loss of ''! Tyler Court of Appeals in 1994 based upon current rules, regulations & statutes in on., this post was deleted by the person who originally posted it covers! Yield citation stated by the person who originally posted it post was deleted by the who... Was prepared for the CDW hard sell and declined under the hood, loss of use '' - are! A lot more sense ready for collection in 2 days driver at no additional fee totaled!

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