OREM — Many individuals dodge the additional rental automobile protection that brokers supply on the rental counter, pondering they’re coated.
However which will depart you with a sizeable protection hole — as an Orem lady lately found.
Debbie Sanich’s costly discovery got here final 12 months when she acquired right into a fender bender whereas driving an Avis rental on Hawaii’s Massive Island.
“He pulled proper out in entrance of us, and we hit his automobile,” Sanich mentioned of the collision.
Debbie Sanich holds up a photograph exhibiting her collision with one other driver in Hawaii. Although she was not at-fault and the opposite driver’s insurance coverage paid for the harm, she was on-the-hook for $1,256 in charges. (Matt Gephardt, KSL TV)
She wasn’t too involved. Her full protection auto coverage covers leases, so she didn’t really feel the necessity to purchase Avis’ collision harm waiver, or CDW.
“I don’t take their insurance coverage as a result of my insurance coverage’s imagined to cowl all leases,” mentioned Sanich.
Plus, she mentioned the opposite driver’s insurance coverage paid for the harm. So, she thought all was nicely till she acquired a shock invoice from Avis exhibiting a sizeable hole in protection.
Associated: Before you drop full coverage car insurance to save money here’s what you need to know
Shock invoice
“Administrative charge, lack of use and diminished worth,” mentioned Sanich of the extra charges she has been hit with.
Avis is charging her $300 in administrative charges only for dealing with the declare. Then $564 for loss-of-use. That’s cash Avis claims it misplaced out on whereas the automobile was getting fastened. And one other $392 for what’s referred to as diminished worth. That’s how a lot much less Avis thinks its automobile is now price due to the crash. Altogether, Sanich owes Avis $1,256.
“This was a fender bender,” she mentioned. “What if someone worn out the entire facet of the automobile? This could possibly be $5, $6, $7,000, after which what?”
Sanich protested the shock invoice, however when Avis refused to budge, she determined to Get Gephardt. And the KSL Investigators reached out to Avis to ask why she’s on the hook for these different costs.
A spokesperson wrote, “If our leases are in an accident with out correct protection, our coverage requires these concerned to cowl the prices. On this occasion, rental car protection was not bought when the car was reserved.”
What insurance coverage received’t cowl
We took Sanich’s case to Brent Thurman of Keystone Insurance coverage.
Brent Thurman of Keystone Insurance coverage explains to KSL’s Matt Gephardt why insurers received’t usually choose up loss-of-use or diminished worth charges. (Nathaniel Gillis, KSL TV)
“There’s nonetheless going to be some objects that you just’re answerable for,” Thurman mentioned.
Relating to loss-of-use, only a few auto insurance policies cowl it. He says that’s akin to asking your insurance coverage to cowl your automobile cost whereas your automobile is within the store – one thing that insurers received’t do.
“A rented car works the identical manner,” he mentioned. “We’ll cowl the legal responsibility, nevertheless it doesn’t imply we’re going to essentially choose up your obligation for the every day rental charge.”
A rental firm will maintain you to that obligation, even for those who’re not at fault. The identical goes for these administrative charges and diminished worth.
“The powerful factor about placing a price, a quantity on it, is that it’s nothing that’s precise. It’s a perceived worth drop,” mentioned Thurman of diminished worth. “And with insurance coverage corporations, they’ll’t pay primarily based on hypotheticals.”
Are there choices?
So, the place does that depart renters? Properly, verify your bank card settlement. It would cowl some or all these charges, as long as you utilize it to pay in your rental.
There’s another choice: Purchase the collision harm waiver or CDW bought on the rental counter.
“Many individuals don’t take it as a result of it’s a good amount of cash per day,” Thurman mentioned.
We’re speaking $30 to $45 every day, which might add a whole lot of {dollars} to your closing tab.
Then again, shopping for a rental firm’s CDW frees you from all these shock charge woes, supplied you didn’t harm the automobile by doing something that broke the rental settlement.
Plus, since your insurance coverage isn’t concerned, you received’t have to fret about paying a deductible or seeing your premium go up.
However are CDWs all the time the best reply?
“I don’t know,” mentioned Sanich. “It’s a tough name.”
In the long run, she paid Avis the $1,256 invoice. However she mentioned with all her leases through the years with out incident, skipping the waiver has nonetheless saved her a ton of cash.
Whereas the opposite driver paid for the harm, Debbie Sanich paid for the executive, loss-of-use and diminished worth charges. (Matt Gephardt, KSL TV)
“I don’t need to pay the additional charge for the leases. I imply, that’s so much,” she mentioned.
Checking your protection
Rental automobile corporations do make huge cash off these collision harm waivers. So, you possibly can anticipate a tough promote on the rental counter.
Thurman mentioned renters ought to go over their automobile insurance coverage or name their agent to allow them to be certain what is roofed if misfortune befalls their rental automobile.
Renters must also look by means of their bank card agreements to see what charges it would cowl that insurance coverage may not. Protection from most bank cards kicks in after your automobile insurance coverage pays.
