Nicholas Chandler was rear-ended while driving an Avis rental car. Even though the other driver was at fault, Avis charged him for the entire time the car was out of commission. Can he get a refund?
Question
I rented a car from Avis for one day and was unfortunately rear-ended by another car. It was the other driver’s fault. Avis charged my credit card for 29 days of rental for loss of use. My insurance covers loss of use, but my insurance company won’t pay because the Avis receipt just shows a 29-day rental and doesn’t mention loss of use.
Avis told me on the phone that the charge is for loss of use, but they won’t give me a new receipt.
Sedgwick, Avis’s third-party claims service, is pursuing loss of use from the other driver’s insurance company. Sedgwick told me that they think Avis made a billing error because I was not at fault for the accident. I don’t understand why Avis charged my credit card for 29 days. When I call to ask, they just say loss of use. Can you help me get a refund? — Nicholas Chandler, Windham, Maine
Answer
Unfortunately, you’re on the hook for the vehicle’s loss of use. When you rent a car, you accept responsibility for the vehicle no matter who is responsible for the accident, and since your name was on the contract, Avis sent you a bill.
But the company made some errors when it charged you.
It looks like there was a series of miscommunications in your case. For some reason, Sedgwick only charged the other driver $1,222, presumably for repairs, leaving you responsible for the difference. And, according to your records, Avis would not send you a bill for the loss of use. Instead, it just appears as if you rented a car at the most expensive daily rate, which no one would do. (Related: Can I fix this Avis “fantasy” rental charge?)
I would be remiss if I didn’t mention that loss of use is highly controversial. The car rental company is charging you the maximum daily rate for what it would have earned if it had been able to rent the car while it was in the shop. But that assumes it could have rented the car the entire time. I believe loss of use is not a fair charge, even if your contract permits it. Many consumers, insurance companies and state regulators agree with me. We can discuss loss of use another day, though. (Related: Billed twice by Avis car rental? There’s a fix for that, travelers.)
You were a model customer. You had insurance that covered you and you responded quickly to Avis and Sedgwick when they asked for your insurance information. You drove the car carefully. You tried to work within the system to clear up the miscommunication. (Here’s our best guide to renting a car.)
I think you should have appealed this to a manager. I list the names, numbers and emails of the Avis customer service managers and Sedgwick customer service managers on my consumer advocacy site, Elliott.org.
This was a confusing case. But after several conversations with Avis, it appears that there were “some issues” with the car rental location and the tow truck, which created some confusion in its internal system.
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“We’re adjusting the contract back to a one-day rental and removing all the additional days that the customer didn’t have the vehicle,” a representative told me.
A short while later, you reported back.
“Avis charged me one day for the rental as you mentioned and refunded me the rest,” you said. “The credit was posted back to my card this morning. This is incredible, and I can’t thank you enough for all of your help.”
Loading ...✋ Your turn
Have you ever been hit with a massive bill for something that wasn’t your fault — like a rental car incident? Did you fight back, or pay up? Scroll down and share your story in the comments after the FAQs.
FAQ’s
Yes. Even if another driver causes the damage, the rental company may still bill you under your contract terms. You’re responsible until the vehicle is returned in good condition. You can seek reimbursement from the at-fault party or their insurance.
“Loss of use” refers to the income a rental company claims it lost while the car was being repaired. They often charge the daily rental rate for each day the car is unavailable — even if they weren’t fully booked or the rate is inflated.
Your insurance may cover loss of use — but only with proper documentation. If the receipt looks like a long rental (as in this case), they may reject it. An itemized invoice specifying “loss of use” is typically required.
Yes. If you believe the charge is erroneous or misrepresented, contact your credit card company. But you’ll need solid documentation to show the charge was unjustified.
You can escalate the issue. Ask for a supervisor or contact company executives directly (Elliott.org maintains a directory). Companies are more likely to issue correct paperwork when senior management is involved.
Before renting, confirm your coverage for loss of use — especially if using a credit card. Also, take thorough photos of the car before and after the rental, and ask for a final invoice at drop-off.
Pro tip: Don’t just assume your insurance covers everything. If you’re relying on a credit card or personal policy to cover “loss of use,” verify that the rental company’s documentation aligns with your insurer’s requirements. One missing phrase could cost you thousands.
Key takeaways
- Loss of use is a controversial and often misunderstood charge. Even when you’re not at fault, rental car companies may bill you for the time the vehicle is out of commission — unless you challenge it.
- Always demand an itemized receipt. In this case, the receipt misleadingly showed a 29-day rental, not a loss-of-use charge — which confused both the customer and his insurer.
- Escalation works. When frontline customer service doesn’t resolve your issue, escalate to a supervisor or executive. Names and contacts are available at Elliott.org.
- Keep all documentation. Having records of conversations, bills, and insurance communications helped bring clarity and secure a refund.
- Be proactive with insurance companies. If your insurer refuses a claim because of vague documentation, ask the rental company to clearly label the charges or issue a letter of explanation.
