PSA: Always Check What Is Covered When Hiring a Vehicle (and All Other Insurances)

SnowDragon on 21/12/2023 - 16:00
Last edited 21/12/2023 - 16:23 by 1 other user

Recently hired a truck to move properties and underestimated how large the truck was when attempting to park in my complex. Gave it a nice scratch along the side. Roughly 30cm in length and varying depth.

Here is an MS paint diagram if that helps. Basically I swung in too early and since it's a new property didn't realise there was an extra gutter in the way.

I was not aware that the Pantech (overhead of the truck) is not covered by the excess until I received an email from the Claims team, and that I'd be liable for the full amount of the cost, regardless of any level of insurance purchased.

This led me into the rabbit hole of horror stories online, cost estimates for repairs/new wraps and multiple inconclusive threads of other stressed individuals who were asking for rough estimates. This and this had me thinking I'd be out $5-10k. That's at least 20 eneloops I could have bought.

I had paid an extra $10 on top of the $70 hire to reduce my excess from $5000 down to $1100 and the repairs came in at $1,210. So ended up paying $110 on top of excess. As strange as it sounds I am happy to be only paying this much. Sure, it's a 1400% increase of what I paid to hire the truck. But I'm relieved it wasn't close to 5 figures as I was expecting. Also cheaper than what some people pay for moving companies.

Breakdown is
$220 - 5 days of repairs @ 75% of the daily rate
$700 - repairs
$80 - assessment fee
$100 - claims handling fee
$110 - GST

So basically what I'm saying is I mentally have $4,000 to spend and I need a robot vacuum, 65" TV and a dining table.

Automotive Car Rental Insurance

Comments

  • CodeXD on 21/12/2023 - 16:04
    +1

    What a wild ride. I was gonna say need more dragon but you yourself have that covered!

  • Euphemistic on 21/12/2023 - 16:16
    +1

    Every hire place I’ve been to has big fat warnings about the Pantech not being covered. Normally with a big picture of one that looks like an opened tin of sardines.

    • SnowDragon on 21/12/2023 - 16:21
      +3

      Basically was told to tap here here and here on the ipad and then sign. Didn't see anything about it, that being said I didn't even know what a pantech was before 2 weeks ago.

      Still my fault for not reading everything and being cautious though.

      • jcaf on 21/12/2023 - 16:34
        +2

        ACL states that the key components of a contract need to be explained. I would of argued that this is a key component of the contract and fought back but if you have paid for it already then so be it.

        The onus is on the Business to explain the contract to you, not for you to read it

      • Euphemistic on 21/12/2023 - 16:36

        Fair enough. What I’ve seen is far more obvious, it’s usually a big sign on/around the counter.

  • Master Bates on 21/12/2023 - 16:18
    +13

    Worst thing is, they usually pocket your money and don't both fixing the damage. They probably put some gaffer tape over it.

    • cashless on 21/12/2023 - 16:28
      +1

      Similar happened to me with hire car in UK.
      Some @r$ehole scraped the rear bumper when I left it parked overnight in a "safe" place.
      I hadn't taken out their expensive CDW insurance (collision damage waiver) due to cost.
      Hire company charged me AU$1500 for patching paintwork but refuse to send me photos proving the work was done.
      As the damage was minor, I suspect they did nothing

      • Master Bates on 21/12/2023 - 17:47

        I suspect they often don't fix something until it's absolutely required.

        Using your situation as an example, they would wait till someone takes the bumper off in an accident and then they would fix it. By that time they could have charged several people $1500 for scrapes and replace it once for way less than they make you pay.

    • bargaino on 21/12/2023 - 19:06

      I guess they fix it eventually, like before selling it.
      I did minor damage to a hire-car, but since the panel already had minor un-repaired damage, it cost me nothing.

  • naruto128 on 21/12/2023 - 16:39

    Don't understand. If the pantech is not covered how come the higher excess kicked in?

    • Euphemistic on 21/12/2023 - 17:03

      The excess didn’t apply. The cost of repairs was just higher than the excess which is why ‘it only really cost $110 more’

  • ol mate on 21/12/2023 - 18:22

    $220 - 5 days of repairs @ 75% of the daily rate

    FWIW, it is usually quite easy to dispute this cost if the vehicle is still drivable and somewhat presentable.

    If it's drivable, then they should repair it during "quieter" periods (e.g. for a moving truck in early Jan when people aren't moving houses), etc. when the truck/car would otherwise be parked up.

    From American forums/reddit, asking them to provide utilisation logs for the vehicle class usually ends in them withdrawing that cost

    • SnowDragon on 21/12/2023 - 18:50

      I did find it strange that it's somehow 5 days off the road when the labour costs alone were $200. Even at min. wage that's 8 hours of work. It wouldn't be in the shop for 5 days.

      But I was expecting 5k+ so happy to take the L on this occasion. I was definitely going to challenge and ask for a breakdown of costs if it were a significant sum.

      Seems like you can ask any American organisation (such as hospitals) for a breakdown of costs and they'll roll over.

  • Muzeeb on 21/12/2023 - 18:29

    Reversing these trucks when the front wheels are under your butt can cause misjudgements with the pivot.

  • jleno on 21/12/2023 - 18:52

    Even if you did read and know what's not covered beforehand, there's probably nothing you can do to get it covered anyway.

    • bargaino on 21/12/2023 - 19:24

      You can get on the web on your phone and buy cover from an insurance company for a fraction of the cost.
      Do it before you collect the car, but in can be in their office.
      Cheaper policies just cover the excess. Better ones cover the excluded item: tyres, windscreen, underbody, overhead etc.

      This can be as part of a travel insurance policy, or stand-alone. Some of the websites that do hire-car comparison will offer this.
      e.g. RAC, https://www.carhireexcess.com.au/

  • Baysew on 21/12/2023 - 19:43
    +1

    All this talk of Pantech is a prompt to check out How many days since Montague Street Bridge has been hit

  • JimmyF on 21/12/2023 - 22:20

    I was not aware that the Pantech (overhead of the truck) is not covered

    Ummm yeah, every truck hire company has this 'feature' as part of hiring a truck.

    • SnowDragon on 21/12/2023 - 22:33

      First time hiring one and have since learned it's common via many other posts. Planning on hiring a car in the UK later this year so I'll definitely be reading the PDS before signing away my life again.

      This is more of a FYI post with actual numbers because when I was waiting for the repair bill there were many questions but not many OPs coming back with final costs.

  • AustriaBargain on 22/12/2023 - 00:18
    +2

    $1200, you could have hired professional movers to do it all for that much while you spent the day at the bar knocking back beers.

    • Peanut money on 22/12/2023 - 21:40

      Something along these lines …

      Regardless who was at fault have you been involved in an accident within the last 3 years?

      • Euphemistic on 23/12/2023 - 09:52

        No, it was wasn’t an accident. I crashed because I can’t drive good.

  • Hackney on 24/12/2023 - 08:38
    +1

    A tip,for anyone renting a vehicle from any car rental agency.Never ever take up their insurance, ever, very expensive.Take out domestic travel insurance, a lot, lot cheaper.Nearly all domestic travel insurance will cover up to $8,000 excess on a vehicle.I never ever take up car rental agencies insurance.I rent mostly through Hertz & always have my own insurance.

    • SnoozeAndLose on 24/12/2023 - 08:46

      Do you need to claim from the domestic travel insurance? I heard this process can be a mess.

      • Hackney on 24/12/2023 - 08:53

        If you take out travel insurance, then yes you have to claim from the company you purchased the policy from, I generally use NRMA as they seem the most competitive for my needs,no different from making a claim on say, car, house etc….It is certainly not ‘messy’,as long as you have the necessary documentation,rental,agreement, and it has been reported to the police & they will give you a reference number.

        • SnoozeAndLose on 24/12/2023 - 10:55

          When purchase insurance directly with the car rental, police report may not be required, just normal opposite driver details is required. Sometime when you are on holiday in an unfamiliar area it cost time and anxiety.

          I am 50-50 on whether taking insurance from the rental or domestic travel insurance, some credit card provide free protection when you paid the rental using your credit card

          • Hackney on 24/12/2023 - 14:01

            @SnoozeAndLose: It’s a lot, lot more expensive to take insurance directly from a car rental company.It’s like throwing money away.Quite a few years ago, I rented a vehicle from Hertz in the UK, I was offered their insurance & took it,little did I know at the time that my international travel insurance covered everything.The Hertz agent did say to me after, that people rarely ever take it up.It is just not worth it.

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