Comments on: Thanks for the new car http://www.elliott.org/blog/thanks-for-the-new-car/ Consumer advocate Christopher Elliott's site. Fri, 10 Feb 2012 05:25:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Randy M http://www.elliott.org/blog/thanks-for-the-new-car/comment-page-1/#comment-2211 Randy M Thu, 27 Jul 2006 14:52:46 +0000 http://beta.elliott.org/photos/thanks-for-the-new-car/#comment-2211 As an insurance professional for the past 15 years, this doesn't surprise me. The rental companies have tried many different tactics to pass on costs to the customer (and their insurance carriers). Diners Club or your own personal auto policy may cover rental cars with no deductible, the problem is in the policy language. Insurance is designed (as it should be) to cover the cost of the repairs or if the car is a total loss the actual cash value of the car, not an arbitrary and inflated loss from a company who is in the car business. I'd bet even Diner's Club won't be covering the total amount being claimed by the rental company. As an insurance professional for the past 15 years, this doesn’t surprise me. The rental companies have tried many different tactics to pass on costs to the customer (and their insurance carriers). Diners Club or your own personal auto policy may cover rental cars with no deductible, the problem is in the policy language. Insurance is designed (as it should be) to cover the cost of the repairs or if the car is a total loss the actual cash value of the car, not an arbitrary and inflated loss from a company who is in the car business. I’d bet even Diner’s Club won’t be covering the total amount being claimed by the rental company.

]]> By: W Hope http://www.elliott.org/blog/thanks-for-the-new-car/comment-page-1/#comment-2210 W Hope Thu, 27 Jul 2006 07:11:45 +0000 http://beta.elliott.org/photos/thanks-for-the-new-car/#comment-2210 One other glaring opp for the rental co's to profit at renters' expense lies in the fact that they can choose to sell at a lowwwwwww price just to move the merchandise; after all, they're gonna get the rest out of you. So if cousin Vinnie needs a new ride but gots no money, you can sweeten the deal out of the goodness of your heart. One other glaring opp for the rental co’s to profit at renters’ expense lies in the fact that they can choose to sell at a lowwwwwww price just to move the merchandise; after all, they’re gonna get the rest out of you. So if cousin Vinnie needs a new ride but gots no money, you can sweeten the deal out of the goodness of your heart.

]]> By: Philip kaufman http://www.elliott.org/blog/thanks-for-the-new-car/comment-page-1/#comment-2209 Philip kaufman Thu, 27 Jul 2006 04:23:41 +0000 http://beta.elliott.org/photos/thanks-for-the-new-car/#comment-2209 Be very careful when using Diners Club. Two years ago I almost got burned . After using it & reccomending it to many others for 10 years, I had a small accident. I then found out that while they may be primary, they don't cover all costs. Such as administratuin fees, "dimunization" of auto etc. Out of a total of $4,500.00 I was to be liable for about half the amount Which inthe end I managed to work out with them after considerable "back & forth". So much for PRIMARY. RENTER BEWARE!! p.s. And they did away with their 60 day billing cycle when they were bought by Mastercard.... Be very careful when using Diners Club. Two years ago I almost got burned . After using it & reccomending it to many others for 10 years, I had a small accident. I then found out that while they may be primary, they don’t cover all costs. Such as administratuin fees, “dimunization” of auto etc. Out of a total of $4,500.00 I was to be liable for about half the amount Which inthe end I managed to work out with them after considerable “back & forth”. So much for PRIMARY. RENTER BEWARE!!

p.s. And they did away with their 60 day billing cycle when they were bought by Mastercard….

]]> By: Kevin Morgan http://www.elliott.org/blog/thanks-for-the-new-car/comment-page-1/#comment-2208 Kevin Morgan Wed, 26 Jul 2006 21:29:38 +0000 http://beta.elliott.org/photos/thanks-for-the-new-car/#comment-2208 I'm not so sure that's the case, Marcy. If Avis or Budget decides not to repair the car, I doubt Diners Club would consider this separate and different charge an "insurance claim" as it's normally understood. As I understand what's being presented: I rent a car from Avis that's worth, say, $12,000 at fair market value. I have an accident that causes, say, $800 worth of damages. Avis decides it's not worth it to repair the car, and decides to sell it. Because of the damage, the car sells at a discount from its fair market value more than the repair cost-- let's say $10,000. Avis is saying they could charge me an extra $2,000 to make up the difference. Diner's Club *might* pay the $800 cost of repair, but they're not going to give Avis an extra $1,200 over and above that. At least, I think that's what Chris is suggesting might happen. Right? I’m not so sure that’s the case, Marcy. If Avis or Budget decides not to repair the car, I doubt Diners Club would consider this separate and different charge an “insurance claim” as it’s normally understood.

As I understand what’s being presented: I rent a car from Avis that’s worth, say, $12,000 at fair market value. I have an accident that causes, say, $800 worth of damages. Avis decides it’s not worth it to repair the car, and decides to sell it. Because of the damage, the car sells at a discount from its fair market value more than the repair cost– let’s say $10,000.

Avis is saying they could charge me an extra $2,000 to make up the difference. Diner’s Club *might* pay the $800 cost of repair, but they’re not going to give Avis an extra $1,200 over and above that.

At least, I think that’s what Chris is suggesting might happen. Right?

]]> By: Marcy Schackne http://www.elliott.org/blog/thanks-for-the-new-car/comment-page-1/#comment-2207 Marcy Schackne Wed, 26 Jul 2006 19:36:00 +0000 http://beta.elliott.org/photos/thanks-for-the-new-car/#comment-2207 Regarding the new Avis/Budget contracts ... the answer is quite simple. In two words: Diners Club. While the Diners Club card (now with a MasterCard affiliation) may have a $90 annual fee, if you are a frequent car renter, the card serves as PRIMARY auto insurance - starting from the first dollar. You don't have to use your own deductible, just contact the card services team and you're all set. Regarding the new Avis/Budget contracts … the answer is quite simple. In two words: Diners Club. While the Diners Club card (now with a MasterCard affiliation) may have a $90 annual fee, if you are a frequent car renter, the card serves as PRIMARY auto insurance – starting from the first dollar. You don’t have to use your own deductible, just contact the card services team and you’re all set.

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