Rental Car Accident (At fault) $4000 Excess And Paying Other Cars Costs?

edpkicf on 14/02/2016 - 15:30
Last edited 14/02/2016 - 16:06 by 1 other user

So I'm asking on behalf of a friend.

A few friends from overseas were driving on a rental, (with Europcar) and was in an accident with another car where they mistook the break with the accelerator and rear ended the other car.

The excess with Europcar is $4100, which depends on the damage. So if they access it at $2000, then my friend will only need to pay $2000. However, Europcar has said that while the $4100 covers their own car, it doesn't cover the other car that was damaged?

I thought all third party rental requires insurance, does that mean my friend will be charged for the damage of the other car?

Does anyone have any idea about this?!

Because it could go to $6000+?

Automotive

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closed Comments

  • nocure on 14/02/2016 - 15:34
    +41

    So I'm asking on behalf of a friend.

    Lol

    • edpkicf on 14/02/2016 - 16:08
      +1

      yeah. Im not from overseas.

    • tomleonhart on 14/02/2016 - 16:31
      +4

      probably asking on behalf of a friend who is asking on behalf of another friend who has someone he/she knows asking on behalf of their friends.

      Not him though.

    • gummibear on 15/02/2016 - 00:51
      +59

      Are you sure it was your friends and not your relatives?

      Best Way to Rent a Car for 9 People +Baggage Holiday in Jan from Driving Sydney to Melbourne 30 Jan to 15 Feb 2016?
      "my relatives are coming from overseas and arriving in Sydney on the 30th Jan 2016"
      https://www.ozbargain.com.au/node/208350

      • pyramid on 15/02/2016 - 10:05
        +12

        Good job Agent 007. lol..

      • edpkicf on 15/02/2016 - 17:49
        +7

        Yup it was friends of the relatives, they hired two cars. The minivan (driven by relatives) was not the one in the accident but the smaller toyota suv (driven by another overseas friend) was the one in the accident.

        But good detective work indeed.

        claps

        • jaypick on 15/02/2016 - 23:36
          +15

          that story needs more dragons

  • captobvious on 14/02/2016 - 15:36
    +24

    Thats their mistake for using the Break instead of the brake.

    the cost is going to skyrocket, the ass of a car cost a lot to fix.

    depending which cover

    Collision Damage Waiver (CDW)

    Your Damage Liability Fee is reduced to the amount shown in the Rental Agreement, but there is no cover for Damage to the Vehicle’s windscreen, headlights, wheels or tyres and there may be no cover for Damage, theft of the Vehicle or Third Party Loss in some circumstances. Please refer to the Terms and Conditions of Rental for a full understanding of Damage Cover inclusions and exclusions.

    Leave the country and don't come back is my best suggestion.

  • whooah1979 on 14/02/2016 - 15:40
    +4

    https://www.europcar.com.au/terms-and-conditions/insurances-…

    Third Party Liability insurance means insurance that provides the driver of a Vehicle with protection against liability for another party’s claims for damage to his/her property or for bodily injury or death arising out of an incident arising whilst you are using the Vehicle. Third Party Cover is a mandatory legal requirement and it is therefore an integral part of our rental service. The cost of it is included in the rental charge.

    • [Deactivated] on 15/02/2016 - 10:00
      -5

      "His or her property or bodily injury or death".
      NOT their car!

      • Noblejoker on 15/02/2016 - 16:45
        +9

        A car is Property - Third Party Liability should cover it

  • whooah1979 on 14/02/2016 - 15:43
    +3

    you need to have a look a the copy of the doc that your friend signed. it will list the options paid for at the time.

    edit
    it's not beyond the car rental company to try and bully your friend to pay for repairs that your friend isn't liable for. consult a solicitor if in doubt.

    • edpkicf on 14/02/2016 - 16:07
      +1

      They didn't take out additional cover for rental insurance.

      They are happy to pay for the 4k but they key thing no one is sure about is my friend's liability for the damage to the other vehicle…?

      Do they need to or not pay the other vehicle? Presumably if the other party goes to their insurance.?

      Or will Europa cover those costs?

  • Sheila Dealer on 14/02/2016 - 16:11
    +3

    Does your friend have travel insurance? If so, then depending on the policy he may be covered for the excess.

    • edpkicf on 14/02/2016 - 16:12
      +1

      Good point but unfortunately no :(

      • snappy1234 on 14/02/2016 - 16:34
        +4

        Time to follow what captobvious has said then ;)

        • Olokun on 14/02/2016 - 16:38
          +1

          And cancel the credit card they used to pay for the rental

        • snappy1234 on 14/02/2016 - 16:39
          +1

          @Olokun:

          Yeah this is where they will get hammered…

      • Marcsie on 14/02/2016 - 17:23
        +9

        Good lession to learn for your friend now,don't take the risk of travel overseas if he doesn't want to take out travel insurance ! Travel insurance, Don't leave home without it :)

      • Cyphar on 14/02/2016 - 18:37
        +10

        Your friend is an idiot. Why would he/she come over without it, and then stupidly drive a rental car?!?

  • [Deactivated] on 14/02/2016 - 17:28
    +3

    Don't trust Europcar to be honest about the costs. e.g. http://www.theage.com.au/victoria/hire-car-companies-charge-…
    Your "friend" might want to cancel/max out their credit card before negotiating what to pay.

  • paul11 on 14/02/2016 - 17:33
    +4

    The max he needs to pay is $4000. As whooah1979 mentioned above "Third Party Cover is a mandatory legal requirement for all Rental car companies operating in Australia". Next time ask you friend to use https://tripcover.com.au/. It cost less than half of what rental car companies charge for insurance.

  • Aust on 14/02/2016 - 17:42
    +4

    Most gold / platinum credit cards carry some form of basic travel insurance so If they have a credit card that card my have travel insurance as a benefit so it may include hire vehicle excess payments.
    They may have had to pay for the hire with that card but worth a try.

    • datafellows on 14/02/2016 - 20:09
      +2

      They normally cover the excess payment if the extra cover is taken. The friend did not take the extra cover from Europe car.

      • ChickenTalon on 15/02/2016 - 13:46
        +1

        Check the pds

        Only some need that

        • Shadowsfury on 15/02/2016 - 14:05
          +1

          All the ones I've looked at recently require you to purchase additional insurance from the rental company before the CC insurance kicks in. But this seems to defeat the purpose as most of the time additional insurance from the rental company will reduce your liability to NIL anyway?

        • ChickenTalon on 15/02/2016 - 14:11
          +1

          @Shadowsfury: some include a X amount towards an excess payment. Say $5,000. Which means you need to have cover reduced to a reasonable level, basically the already included reductions

          I have an annual policy which has this, and a cc policy which has this

        • Shadowsfury on 15/02/2016 - 14:14
          +1

          @ChickenTalon:

          I flip credit cards quite a bit so the ones I use for free travel insurance always changes - so I keep checking T&C/PDS whenever I'm travelling.

          The last few trips I've just used tripcover.com.au

        • ChickenTalon on 15/02/2016 - 17:28
          +1

          @Shadowsfury: I'm yet to find an travel insurance policy that includes rental car cover AND says you must also take out all the additional insurance from the rental car company. like you said, would be pointless.

          check the PDS

        • ankor on 15/02/2016 - 19:40
          +1

          @Shadowsfury:

          It should, but as with all contracts, the devil is in the details. Maybe some companies only reduce it down to X amount. You never know until you know the company and see the agreement.

        • Shadowsfury on 15/02/2016 - 20:19
          +1

          @ankor:

          The most recent one that comes to mind is CBA where the PDS states:

          Cover is only provided under this benefit if you have purchased motor vehicle insurance or damage waiver from the rental company or agency you rented the rental vehicle from.

          When I rang the help line to clarify what they mean, I was told it means you will be covered if you purchase the available insurance option when renting the car.

          They were completely vague on answering the point of the insurance if the only insurance option from the rental company would reduce the excess to nil anyway.

          Since I couldn't get a clear answer from them I erred on the side of caution and got separate cover via tripcover.

          Do either of you feel there's any other way to interpret the above clause? Wasn't willing to risk it and find out the hard way on a 2 week rental. Didn't care so much about the rest of the travel insurance inclusions as I was heading to NZ and I'm a citizen there (so medical would have been free anyway).

        • ChickenTalon on 15/02/2016 - 21:18
          +2

          @Shadowsfury: you can cautious. But it seems very clear to me on the pds for the commonwealth insurance, you'd be covered for the benefit amount of 2,250. So you may want to reduce your excess to this amount

          1. Rental vehicle insurance excess cover
            We will reimburse you for any insurance excess or deductible which you become legally liable to pay in respect of a claim under the rental vehicle insurance of the rental vehicle during the rental period provided:
            • the rental vehicle is rented from a licensed rental agency; and
            • as part of the rental agreement you have taken rental vehicle insurance against loss of or damage to the rental vehicle; and
            • you have complied with all requirements of the rental organisation under the hiring agreement and of the rental vehicle insurer.

          All rentals in aus include insurance, but will have a big excess unless you take an "excess reduction" option. Seems pretty clear to me

          Source https://www.commbank.com.au/personal/apply-online/download-p…

  • Cyphar on 14/02/2016 - 18:36
    +2

    Presumably this "friend" has travel insurance. Most policies do cover rental car excess fees. Have him/her take it up with them. If they dont have travel insurance, he's a (profanity) and does not deserve any remorse.

    • datafellows on 14/02/2016 - 20:10
      -2

      I think they only cover if extra cover is taken. I suppose no travel insurance cover motor vehicle accidents.

      • Cyphar on 15/02/2016 - 10:44

        That is correct. You should not be driving a rental car if you do not have it as part of your travel insurance. The risk is far too great and doing so means you understand and accept that risk.

    • [Deactivated] on 15/02/2016 - 10:01
      -1

      Travel insurances does not cover car rental fees. You need to take out specific insurance.

      • CLoSeR on 15/02/2016 - 13:23
        +3

        Not fees but many will cover Rental Vehicle Accident Excess to a specific amount, for example $2500.

  • eatwell365 on 14/02/2016 - 19:06
    +1

    up to you, but my 2 cents would be to cancel the credit card at once.

    • gstfree on 15/02/2016 - 15:05
      +1

      Cancel the card could not cancel any pre-authorization.

      But this will be a first thing to do.

  • datafellows on 14/02/2016 - 20:16
    +3

    Your friend needs to pay up to ~$4000 as that is the excess.

    I don't recommend cancelling your card. Own up to the mistake as it might come and bite your ass on one rainy Monday afternoon :P

    My friend travelled to Australia without travel insurance, broke his leg and bills are still coming and they are now $12K and we expect them going over $16K. A night in the hospital alone is over $2K.

    • gummibear on 15/02/2016 - 00:40
      +2

      Thank you everyone for your great tips and suggestions. Took a lot out of them.

      One thing I forgot to mention is that my mate's flight is booked for tomorrow so they're meant to return it tomorrow anyways. Unlucky it happened on the last day :/

      So after careful consideration, we believe the best course of action is:

      they're just going to cancel the credit card and ditch the cars outside Europcar and be on the plant tomorrow.

      yolo

      What if someone reports this thread to the rental company and they will have confirmation it wasn't a matter of forgetting? Plus you are now dragged into it with documented involvement, as you suggested they act with criminal intent based on your internet research.

      • edpkicf on 15/02/2016 - 17:20
        -4

        Not sure if srs,…

        Plz show results breh.

        I can haz your free time?

        …

        #no pain no gain crew

    • [Deactivated] on 15/02/2016 - 15:42

      Seriously?

      That little old lady* your friend hit needed her car to get to hospital for her daily dialysis.
      She also used her car to deliver meals to disabled kids.
      And to get to the pokies.

      Who's going to pay to fix her car - I don't think the rental company is at fault for the accident?

      (*other party might not have been a little old lady)

    • whooah1979 on 15/02/2016 - 16:40

      the other driver has to file a claim with their insurer. the insurer will then chase the driver at fault for payment. europcar has no part in the dispute between the driver at fault and the other driver.

    • MrTweek on 15/02/2016 - 20:38
      +1

      Europcar's continually expanding network meets your mobility needs with a network of more than 10,000 outlets worldwide in over 150 countries covering Europe, Africa, Middle East, Indian Ocean, Canada, Central America, Mexico, Carribean and Asia-Pacific.

      Your friend should check if he lives in one of these 150 countries. They might have lawyers there, too.

  • edpkicf on 15/02/2016 - 08:56
    -5

    Guys I thought the yolo was clear I was being sarcastic.

    But plan didn't go as well as we hoped. :( the rental place found out. An intern I think

    His body is behind the dumpster.

    #srsnotsrs

    • Findo on 15/02/2016 - 12:27

      Karma will get you and your friends.

      • edpkicf on 15/02/2016 - 14:41

        Nope I'm a libra. Cupid protects.

        • gummibear on 15/02/2016 - 16:27

          Nope I'm a libra. Cupid protects.

          Indifference and entitlement

          #YOLO

        • edpkicf on 15/02/2016 - 17:14

          @gummibear:

          #swag

          you hating bro…?

  • Dr Techno on 15/02/2016 - 10:39
    +4

    1 year after this is settled you might get a bill for hail damage :-O

  • GameChanger on 15/02/2016 - 14:45

    wow the OP must be very young, surely was on his P plates still?

    GameChanger on 15/02/2016 - 14:45 (Collapsed - Offtopic. Show)
    • edpkicf on 15/02/2016 - 17:18

      You interested breh?

      #don't be hating

      ..

      .
      .
      .
      100% srs

      (Big gains crew)

      • GameChanger on 15/02/2016 - 17:25
        +3

        Obviously you didn't do legs; weak legs mistook the accelerator as brakes.

        • edpkicf on 15/02/2016 - 17:44

          you wot mate?

          I was just mirin my aesthetics and shreddedness in the mirror

          nomsaying?

          #hatersgonnahate

  • Gaz1 on 15/02/2016 - 17:48
    +1

    The end result aside, it would be interesting to know the correct answer here.
    I always assumed the standard included insurance in rental cars would cover all vehicles in an accident & in the worst case you would be up for the full value of the excess ($4000 in this case).
    Much like your normal car insurance, you pay your insurance company the excess & this covers your entire liability.

    I this not the case with rental cars?

    • eatwell365 on 15/02/2016 - 18:32
      +2

      Read this and this.

      Not all rental car companies the same and ACCC is taking on Europcar.

  • ahly92 on 15/02/2016 - 18:31
    +9

    Not so smart to spew the crime online…

    What's stopping one of the 20 ozbargainer that downvoted you to call up europcar and lead them to this…they can then request Scotty (ozbargain owner ) to release ur ip address and track u down as an accessory to the crime…

    Who will be laughing then?
    # sorrynotsorry

    • nultma on 15/02/2016 - 19:22
      +5

      I don't understand why your trying to troll now, people have given you advice for your "friend", some of which being to default on the debt (which is horrible) and now you're pulling high school bullshit to make a joke out of it?

      • GameChanger on 15/02/2016 - 20:17
        +1

        I think OP is angry that we know it was him not his 'friend'.

  • Kranbone on 15/02/2016 - 20:19
    +1

    If you have an accident there is no shame in admitting it, there is shame on saying it was "your mate/cousin/etc".

    You're going to be taken to the cleaners, seek professional legal advice here. Ask for an itemised quote (several) but don't expect it.

  • eneloop on 15/02/2016 - 23:25
    +1

    OP this is where the bikies come in

  • Moderatorscotty on 15/02/2016 - 23:54

    I think OP might have already got the answer he is looking for here and the thread has diverged.

    Thread closed.

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