Visa Rental Car Ins Coverage - Loss of Use

[TwoAtDisney]

This info is for those of us who do not buy the rental car company's ins.

Our personal Farm Bureau auto insurance does not cover 'Loss of Use'. Our agent said most don't cover this, so you might want to check with your ins comp. 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.

Last year we purchased Allianz Loss of Use ins thru AAA. $72 for 11 days rental. Recently I was advised on this Transportation Board that Visa covers Loss of Use. So I called Visa & here is the scoop -

1. Here's the website for seeing it in print - http://usa.visa.com/personal/cards/benefits/bft_dmg_waiver_personal.html

2. Here's the phone # - From the website = "For general questions regarding this benefit, call the Benefit Administrator at 1-800-VISA-911". I got the same info from 800-356-8955.

3. Loss of Use coverage is described as - "Valid loss-of-use charges imposed and substantiated by the auto rental company through a fleet utilization log." Note that the rental company may charge more than the insurance company will pay, but this is the case with all insurance.

4. To qualify for Visa coverage, you must follow the "Terms & Conditions". These are listed on the website.

5. This benefit is provided for only those vans manufactured and designed to transport a maximum of eight (8) people including the driver and which is used exclusively to transport people.

6. You might want to take the following info with you, just in case - from the website - What do I need from the auto rental company in order to file a Visa Auto Rental CDW claim?

7. When I called, I was advised that the Visa ins coverage is only for vehicles rented no more than 15 days. However, this is not listed on the website - or at least I didn't see it.

Hope this helps someone. If I'm wrong on anything, please let me know.

Julie

 

[seashoreCM]

One other question needs to be addressed: Who is responsible for obtaining the rental company's fleet utilization log to prove that the rental company actually suffered by not having that car available to rent?

If the rental company refuses to provide the log, will your credit card company stand behind you and keep the loss of use charge under the dispute you made, and charged back to the company until it coughs up the log? Or will the credit card company side with the rental company until you submit all the paperwork including the log, possibly requiring a subpoena to get?

 

[Jenny3]

Excellent info, thank you! Printing that out to put in my Orlando file

 

[mwmom]

That is great information to have! I wish I would have known this when the rental car we were driving this summer got a window ding and I had to pay for that. I, too, am bookmarking this for future reference.

 

[jlewisinsyr]

Good luck getting utlization logs...

 

[mellvswdw1]

You could also ask your insurance agent if they have an endorsement for non-owned vehicles for liability and property damage. It may only cost $10-15 to add to your policy while you rent a car.

State Farm has a partnership with Enterprise and Hertz if you rent from one of those companies, then they will waive the cost of loss of use.

Hope this helps!

Melissa

 

[SuzanneSLO]

You could also ask your insurance agent if they have an endorsement for non-owned vehicles for liability and property damage. It may only cost $10-15 to add to your policy while you rent a car.

State Farm has a partnership with Enterprise and Hertz if you rent from one of those companies, then they will waive the cost of loss of use.

Hope this helps!

Melissa

USAA has something similar. If you book using USAA discount codes with Avis, Budget, Hertz or Enterprise, loss of use is waived by the rental car company.

We typically pay with our Amex card, which has a siliar policy to Visa: they pay loss of use but only with utilization logs from the rental car company. -- Suzanne

 

[DVC-Don]

One other question needs to be addressed: Who is responsible for obtaining the rental company's fleet utilization log to prove that the rental company actually suffered by not having that car available to rent?

If the rental company refuses to provide the log, will your credit card company stand behind you and keep the loss of use charge charged back to the company until it coughs up the log? Or will the credit card company side with the rental company until you submit all the paperwork including the log, possibly requiring a subpoena to get?

The insurance company (in this case Visa) requests the log. Back 20 years ago the company I worked for did cover (not anymore) loss of use. I would request the utilization log from the rental compay and none of them ever provided the log, but they would always drop the loss of use claim then. Hertz was the worst one back then for these claims.

 

[DebbieB]

The insurance company (in this case Visa) requests the log. Back 20 years ago the company I worked for did cover (not anymore) loss of use. I would request the utilization log from the rental compay and none of them ever provided the log, but they would always drop the loss of use claim then. Hertz was the worst one back then for these claims.

I don't see how they could charge you for loss of use but refuse to provide the proof (the logs). It's just a ploy and your experience proves it. Fight it and they will drop the charge.

 

[TwoAtDisney]

Thanks for your responses. Got some great additional info.

I did ask Farm B. if I could add on the Loss of Use coverage, but my agent said Farm B. does not offer it in any form. He said that he didn't think the rental car company could legally collect on Loss of Use.

In another forum, one person recounted their experience with a Loss of Use charge by a rental company. When he couldn't get the rental company to drop the charge, he paid an attorney $100 to send a letter to the rental company. The rental company dropped the Loss of Use charge. The poster assumed the rental company knew they could not fight such a charge in court.

We have always carried an Umbrella Policy with Farm B. If we are ever sued, this policy covers us for legal fees & liability up to $1mil over what our home & auto insurance covers. It costs $35 year. So, DH & I figured if we ever had a Loss of Use problem, the Umbrella policy would be a good backup to the Visa coverage. We know the Umbrella policy works, because many years ago, we flipped a house & later the buyer sued us saying the septic tank was bad. Farm B. told us, No Worry! They would just pay the $2500 amount without going to court. My DH is fiery & he refused, saying the lawsuit was frivilous & he didn't want the person to just get free money. So we hired a lawyer & won the case - cost to us, $2500! But DH felt great!

Hope none of us experience Loss of Use issues!

Julie

 

[seashoreCM]

Note that an umbrella policy is not meant to cover items that a regular insurance policy does not cover. An umbrella policy covers dollar amounts that a regular policy does not cover.

As far as fighting the case goes, who sues whom? The rental company to collect the amount, or you to get it refunded?

 

[TwoAtDisney]

seashoreCM, unless we have been hoodwinked, our umbrella policy does both. It is an extension of our homeowners & auto policies. Once the max has been reached, the umbrella steps in. Also, it acts alone when we get sued to cover not only the lawsuit amount but also the legal fees - up to the $ amount of the umbrella policy.

Hadn't thought of it that way, but the rental car company would place the charge on our credit card! So I guess we would be trying to get our money back - umbrella would not help with that!

Note to self - If ever have damage to a rental car, immediately cancel the credit card given to the rental company!!!!