Loss Of Use Fees??

[Brich1]

Friend of mine was just telling me that at a recent trip to Orlando - he was socked with a "loss of use fee" which was like $150 for the week.

Is this necessary - or is it a screw job? What other insurance and misc should I watch out for?

Please help - first time renting a car in Orlando

 

[Trekker]

Did they have any explanation what the loss of use fee was for?

 

[DebbieB]

Was he in an accident? If a car is damaged and it's your fault, in addition to the repair costs they can also charge for loss of use for the rental dollars they lost while the vehicle was being repaired.

 

[Michael623]

This is a Florida law. Every time I've rented they tell me about it.

 

[Brich1]

The loss of fee was explained to be if you get into an accident - insurance does not cover the down time the vehicle is in a shop being repaired. Apparently your normal car insurance does not cover this - so the rental companies came up with this for additional revenue. I wonder if you can buy this coverage from your home insurance company?

 

[VAN]

We were just in Las Vegas and declined this coverage which was $15/day. When we got home, I called our insurance company and she said we should have gotten it because they do not cover this. (Fortunately, nothing happened, but in the back of my mind I was a bit nervous the entire time!!)

I'm sorry to hear that Florida also has this charge!

 

[Michael623]

That is why they offer the coverage. If you don't want to pay for it you really don't have any room to complain.

 

[Ted and Holly]

Many Gold or Platinum credit cards will cover loss of use if you rent the car using the card.

I don't think this is specific to Florida. The rental company expects a vertain amount of revenue from a car. if it is in the shop, it isn't making any money.

Stupid, but it makes sense.

Ted

 

[DebbieB]

This is a Florida law. Every time I've rented they tell me about it.

It's a law? I just looked at some of my old reservations and it's never been added to mine. I never add insurance. My personal insurance is primary and my platnium visa is secondary. The platnium visa covers loss of use and the deductible from my personal policy.

 

[Michael623]

I think you're missing an important detail in the original post. They had an accident. Did you ever have an accident with your rental?

 

[Ted and Holly]

I think you're missing an important detail in the original post. They had an accident. Did you ever have an accident with your rental?

I must be REALLY missing it. I don't see where anyone said there was an accident.

Ted

 

[curlyjbs]

I'm with you Ted

curly

 

[zurgswife]

I must be REALLY missing it. I don't see where anyone said there was an accident.

Ted

Never read anything about an accident in the OP either..

 

[Brich1]

I am the writer of the original post - there was never an accident. This friend of mine was just taken by surprise to learn of this loss of use insurance which cost him over $22 per day.

 

[DebbieB]

Slick car rental counter salesmen will try to talk unprepared customers into all kinds of insurance. Call your agent to find out what coverage you really need. If you have a gold or platnium credit card, also check the coverage they provide. If you have a personal auto policy with full coverage and a decent credit card, you probably do not need it.

 

[mjatgoofy]

Brich1...your friend was scammed. As someone who has been in the insurance claims industry for 15 years, I have dealt with many of these types of claims. Loss of use claims by rental companies are garbage. In many states, the rental company needs to prove that their entire fleet was rented out in order to be compensated for loss of use. Rental compamies will agrue this. In other words, if they had other cars available to rent, they really have not lost anything. Also, in most cases, your policy would cover this expense.

As far purchasing the insurance, in many cases it is a waste of money. 99% of auto polices provide coverage when you are driving a temporary substitute vehicel(i.e. rental car). Also, state laws vary. In some cases, the rental company is required to provide primary coverage(at no cost to you) while your poilcy provides secondary.


Who is the rental company?

 

[mermaidwannabe]

I'd be very interested to know which company this was with. Do we need to bring proof of our insurance and what it and credit cards cover or can we just tell the person "we're covered"?

 

[Carrieberry]

I would also like to know if i need to bring along my insurance card etc. to National's Emerald Aisle booth when renting the car Friday!

 

[seashoreCM]

Some companies require that you have collision on your own car or buy their collision coverage, otherwise they reserve the right not to rent to you. Payless, L&M, and EZ come to mind. You need to bring proof of insurance, the page that describes all the kinds of coverage you have. During non-busy times they might not bother to ask for the proof of insurance.

If you have a credit card that provides both car rental collision coverage and car rental loss of use coverage, you need to decline the rental company's coverage. Things work out easier after an accident because the credit card company will put up a fuss about the loss of use and usually negotiates it down.

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