Rental Van Damaged - Excess Charge

SySalem on 07/11/2017 - 15:39

A few days ago a family member hired a wheelchair accessible vehicle from a company that deals specifically in these types of rentals.
During the day the van was to be returned, they reversed into a tree, causing some damage to near the rear right light area (nothing cracked visibly to the eye, but there was a visible dent near the light). Upon returning the vehicle and showing/telling them of this, the family member was told that they will be emailed the papers they need to sign regarding the insurance claim and that the excess could be up to $1,500. We pay an insurance fee as part of the rental cost for the van, a quick skim through their terms and conditions and they call it a "fully comprehensive and third party insurance".

Today the email came through from the local person who we had dealt with, with an attached email from their higher up, simply stating "They will be charged $1,500, here are the forms". So the forms were passed through on the email to us, along with the full complete credit card details of my family member, expiry date and CCV number (this email was also CC'd to the first person who emailed them the forms and that it would be costing $1,500) asking to let them know when they can charge that account. I'm a little iffy on the fact that the entirety of the credit card details were just put plainly there in the email, but I'm just going to ignore that for the moment.

I've done just a bit of quick reading and apparently I should be telling my family member to request an itemised receipt for the cost of repairs, to make sure everything checks out. I also read that it goes against Australian Consumer Law but sometimes rental agencies charge the maximum damage excess fee without a repair quote. The car was returned yesterday afternoon around 3pm. We received the email around 1pm today from them. To me, I am again just feeling a bit iffy due to how quickly they have gotten back to us and basically said, it will be the full amount of excess we must pay.

We've never been in any sort of situation like this, so I am sort of wondering what advice to give my family member, do I tell them to contact the rental agency and ask for the itemised receipt of the cost of repairs, and then go from there?
Any thoughts or similar situations or help in anyway would be appreciated.
Thanks!

Automotive

Comments

  • No on 07/11/2017 - 15:43

    How did they pay for the rental?

    Some credit cards come with insurance for the excess, I'm not quite sure if it only applies when travelling overseas however.

    i.e https://www.citibank.com.au/aus/static/complimentary_insuran…

    • SySalem on 07/11/2017 - 15:52

      They paid with a credit card, so I will definitely look into this thanks!

  • bobbified on 07/11/2017 - 15:43
    +1

    Go by whatever it says on the contract they signed…

    • SySalem on 07/11/2017 - 15:49
      +1

      From what I have read that therein lies some questionable issues. In the contract it says you will be charged $1,500. And then as I said, I read that under Australian Consumer Law, that is not allowed, yet still rental companies put it in their contracts.

      • HighAndDry on 07/11/2017 - 16:03

        "And then as I said, I read that under Australian Consumer Law, that is not allowed"

        Got a source?

        • SySalem on 07/11/2017 - 16:10
          +3

          https://www.choice.com.au/travel/on-holidays/car-hire/articl…

          Under subheading "Run into Trouble?"

          "While it goes against Australian Consumer Law guidelines, rental agencies sometimes charge the maximum damage excess fee without a repair quote, or place extra charges on your card without first giving you a chance to dispute them. If this happens, you can try seeking a chargeback through your credit card company."

          I completely admit I have not fully read the whole of the Australian Consumer Law, I've been slowly going through it trying to make heads or tails, but I asked here in the meantime in case someone had a similar experience or other helpful information.

        • HighAndDry on 07/11/2017 - 16:14
          +1

          @SySalem: Sorry to say, but you might want to follow the links in the article.

          https://www.choice.com.au/travel/on-holidays/car-hire/articl…

          "The company should notify you of any extra charges before deducting money from your account, giving you a reasonable chance to dispute them." <- I think that's the relevant part. In this case though, the rental company isn't charging you for the damage itself, they're charging you for the insurance excess. And since the insurance excess is a flat-rate, the "itemized invoice" is just going to be their insurance company saying "this is the excess".

        • bobbified on 07/11/2017 - 16:21
          +1

          To me, I am again just feeling a bit iffy due to how quickly they have gotten back to us and basically said, it will be the full amount of excess we must pay.

          They could easily look at it and be able to tell whether it'll be under or over $1,500.

          You do have the right to ask for a quote on the damage but, with the cost of parts nowadays, $1500 isn't all that much. Knowing how these companies make money, I'm expecting there's a certain element of over-quoting from themselves or their usual repairer. But for the amount that it is (which isn't IMO, too ridiculous), it'll be very difficult to fight them on it.

          Had the excess been $4,000-$5000 (which is a standard excess) and they charged the full amount, I'd definitely be asking questions.

      • CLoSeR on 07/11/2017 - 17:22
        +2

        Why do they all do it if it's not allowed? The excess seems about right for a rental vehicle policy; this is not a private vehicle.

  • PissLUR on 07/11/2017 - 15:48

    pay the excess.

    you are also liable for the number of days the hire car is in the workshop for repair.

    • SySalem on 07/11/2017 - 15:52

      Excess has been paid, or at least is in the process of it being paid. That is not what I have asked. I am asking, as they said the maximum we would be charged is $1.5k, and then we were hit with the maximum, should we be asking for an itemised receipt to make sure that being charged the maximum is correct, especially after having read that sometime rental agencies do just straight up charge the maximum, without even having gotten the repair quote, which goes to the timing of it all having happens so fast from drop off to them saying "You have to pay the maximum" essentially.

  • k-rokfm on 07/11/2017 - 16:02

    Normally you will be charged the maximum and then, later, if the amount comes to less than the maximum you will be refunded. This is how I’ve been explained it before. Is there anything about this in the contract?

    • SySalem on 07/11/2017 - 16:10

      I didn't see anything similar to that in the contract at all, no. I will re-read it to fully make sure, but I do not believe so, unfortunately. But thanks for that, as I will make sure to check!

  • HighAndDry on 07/11/2017 - 16:03

    Nope. You damaged their property. They can decide to get it fixed privately (i.e. itemized quote), or they can go through their insurance (i.e. insurance excess). They're deciding to go through insurance. So you pay excess.

    • SySalem on 07/11/2017 - 16:11

      I'm not disputing that excess as to be paid, I am questioning as to where or not it must be the maximum as they quoted, without them giving us evidence of how much it is actually costing.

      • HighAndDry on 07/11/2017 - 16:14
        +1

        The excess is the excess. That's how insurance works - they pay the excess, instead of paying directly for fixing the damage.

        • MITM on 07/11/2017 - 16:34

          So regardless of the cost of repairing the dent, it'll cost $1500. May as well smash the car up good and proper if all you lose is $1500 and the repair bill comes in way over.

        • HighAndDry on 07/11/2017 - 16:36
          -1

          @MITM:

          Do people not know how insurance works?

        • wouldntyaliketoknow on 08/11/2017 - 08:27
          +1

          @MITM: Excess is per Incident. Reckless or deliberate damage to the vehicle etc. is not covered. A good way to play yourself…

  • qwerty on 07/11/2017 - 16:06
    +1

    If you really want you can push it , contacting ca and an ombudsman but they will have probably just have one of their repair partners doctor you up a invoice .

    But you have a panel , a light , work , safety inspection and time off the road so $1500+ isnt really outside the realm of what a panel beater would charge.

  • toniyellow on 07/11/2017 - 16:10
    +2

    Yes, get an itemised bill to make sure the repair didn't cost less than the excess they are making you pay.

    Car hire companies well known for inflating the cost of repairs. Hertz and Europcar were taking to the ACCC for this practice not long ago.
    - see https://www.accc.gov.au/media-release/former-europcar-franch…
    https://www.accc.gov.au/media-release/hertz-undertakes-to-re…

    Choice has a good guide, sounds like something you may have been reading?
    https://www.choice.com.au/travel/on-holidays/car-hire/articl…

    You could also call LawAccess- http://www.lawaccess.nsw.gov.au/Pages/contact-us/contact-us.… or a community legal centre http://www.clcnsw.org.au/clc_directory.php if you want some advice / and then the ability to be able to say to the car rental "a lawyer advised me to ask for the itemised bill"

    • SySalem on 07/11/2017 - 16:15

      Yep choice was where I was at and found most of my information that started me off on my little searching adventure. So thanks for the clarification and I definitely feel like asking for the itemised bill is the way to go before anything else. I mean, what can it hurt to ask for that anyway?

      The LawAccess or a community legal centre is actually a go idea as well for the exact purpose you said, adding weight to words and such. So thanks again for the suggestion!

  • Euphemistic on 07/11/2017 - 16:12
    +1

    If it is pretty minor, they'll likely collect the 'excess' and not repair the vehicle until it is damaged again and really requires panel work.

  • spackbace on 07/11/2017 - 16:14
    +3

    You ask for an invoice, it'll be very easy for them to get a quote generated which will be more than $1500… And then guess what, you're out of pocket $1500 anyway.

    Don't cause undue stress and worrying over the issue. It'll be worth more than the $1500 to repair it to a proper standard (not some backyard job).

  • Paul Atreides on 07/11/2017 - 16:51

    just pay the $1500, the cost they can claim isn't dependant on how much the repairs were. E.G. they can claim the cost of it being off the road while it's being repaired.

    As SaceBpack said above, it's just going to cause you stress, and the end result will be the same

  • CLoSeR on 07/11/2017 - 17:24

    If it's damage to the bumper they'll usually replace it with a new one which has to be sprayed and fitted.

    This will cost more than $1500 to be done properly.

  • AdosHouse on 07/11/2017 - 17:39
    +3

    Mate you would be suprised how quickly repair bills go up. I had a young (uninsured) P-Plater hit the back of my car at relatively low speeds, I saw some scratches to my rear bar, and looked like it had damaged the left side mounting screw holes. This is a VY Executive Commodore, so parts are a dime a dozen.

    Repair bill came to $1900, new (second-hand) rear bar, repair beaver panel, paint new bar, replace left tail light, re-align boot. It all adds up.

    I can imagine a wheelchair accessible vehicle probably has a lot more expensive parts than a 13 year old Commodore.

  • JimmyF on 07/11/2017 - 17:57
    +2

    I've done just a bit of quick reading and apparently I should be telling my family member to request an itemised receipt for the cost of repairs, to make sure everything checks out

    The rental form will state $1500 excess. Its a pretty standard amount and you signed/agreed to this amount.

    You can ask for a breakdown, BUT they'll hit $1500 pretty quick without trying. You'll be charged for lost income while its getting repaired as it can't be rented, the repair itself, some admin fees for processing the repair etc.

    There are no 'mates rates' here, you damaged a vehicle, they are out for income. So you will be charged every cent they can get. So there is little point in trying to fight it asking for a breakdown.

    While the 'repair' might be $700, as above, it might mean a week off the road for repair, so that might mean 3-4 days of lost hire fees. All the admin time in processing the claim will be passed to you. So hello $1500 and more!

  • nomoneynoproblems on 07/11/2017 - 18:43

    This is why you always pay the excess reduction, you can scratch a door and they'll be happy to slug a claim on you.

  • Randxyz123 on 07/11/2017 - 20:33
    +1

    $1500 Sounds cheap to me…

    All the itemised invoice will be is…

    INSURANCE EXCESS $1500

    Total (inc GST) $1500

    The insurance company will cover the damage for $1500 if the total damage was $700 or $7000

  • giftcardinspector on 08/11/2017 - 08:29
    +4

    Rental car excess is ridiculous but you have to pay it.
    Although this doesn't work in your case, if you ever rent a car, take out travel insurance that covers rental car excess.
    I always use 1cover, my next hire is ten days, cost of my travel insurance is about $40 for 10days, rental car insurance full comp is $30 a day. Always read the fine print, I'm pretty sure there is something in there that you can only take the cover out if you are Xkm from home.
    This is taken from 1cover website.

    Our travel insurance provides cover for the rental excess (or the cost of repairing the rental vehicle if this is cheaper) if you hire a rental car and it is involved in an accident, is damaged or stolen. We cover you up to $5000 for the excess that could be incurred in the event of an accident, whether your fault or not. We also cover you up to $500 to return your rental car if you are seen by a medical advisor and you have been deemed unfit to do so.

    For an additional premium, you can increase your Rental Vehicle Excess Add-On to $6000, $7000, or $8000 and ensure you don’t get ripped off by rental vehicle companies hefty fees.

    Covered whether it was your fault or someone elses. Our policies will automatically cover you up to $5000 for the rental car excess that could be incurred in the event of an accident, whether it's your fault or not.

    Increase and protect yourself from exorbitant rental company fees. Increase your excess amount to $6000, $7000, or $8000 and travel with even more peace of mind when you're on the road. This is particularly useful for larger vehicles, such as campervans.

    Cover for accidents, damage or stolen vehicles. Cover is provided for the rental excess (or the cost of repairing the rental vehicle if this is cheaper) if you hire a rental car and it is involved in an accident, is damaged or stolen.
    Cover for return of your rental car. We will also cover you up to $500 to return your rental car if you are seen by a medical advisor as unfit to do so.

    Plus cover for all the other things that may go wrong on holiday. With our overseas comprehensive policy you'll be covered for lost luggage, cancellation of trip, medical emergencies and much more.

    • John Kimble on 08/11/2017 - 09:07

      We use tripcover for domestic car rental excess insurance. Have never claimed though.

      • giftcardinspector on 09/11/2017 - 08:39
        +1

        Have a look into 1cover. You get travel insurance too, and it's a fair bit cheaper than trip cover.
        In saying that, trip cover is a fair bit cheaper than car hire places!
        I don't know the nuts and bolts of it, but trip cover looks like it could be good for hiring a car in your location. I'm hiring a removal truck next week, I'll give it a go, thanks!

        • John Kimble on 09/11/2017 - 08:51

          Yeah, we usually use 1cover or Southern Cross? For overseas travel everything, but tripcover for domestic car rental excess cover only.

          I think you can put your frequent flyer number in for 5% off at tripcover?

  • eggles01 on 08/11/2017 - 13:34

    Hi contact Department Fair Trading and see what they advise to do,g'luck

  • eggles01 on 08/11/2017 - 13:37

    make sure you ask for itemized damaged report and if you go to them directly make sure you have a credible witness with you

  • bindis on 08/11/2017 - 21:30
    +1

    I get an annual travel insurance policy each year to cover us for all travel, luggage, overseas medical, and car hire excesses etc. I realise it doesn't help you now, but it is really handy.

  • wouldntyaliketoknow on 08/11/2017 - 23:40
    -2

    Yeah mate. No worries. They're doing your family member over, it's a big scam - just a nice earner for them, come to think of it the dent was already there when you picked it up…

    R/R
    Paint
    Repair
    Parts
    Sublet (If Applicable)
    Enviro Levy
    Booth Allowance
    Mix & Match
    Administration Fee
    Loss of Use
    GST

    Over $1500 easy.

Login or Join to leave a comment
Login Join