A RENTAL driver took out an insurance policy during her short time with a car, but a fine print detail nearly cost her more than $1,000 after an accident.
After being in an accident, the driver expected her car insurance to cover most of the costs. The surprising $1,000 fee was completely avoidable.
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Julie Thomason rented a car before she was involved in an accident in 2016, according to USA today.
Thomason said he used his personal car insurance during the rental period. She knew that the accident could have some additional costs, despite the insurance.
But she was surprised by the $1,000 “loss of use” charge added to her fees.
Thomason said his auto insurance company refuted the accusation. But the surcharge was stiffer than expected.
“They said after a lot of back and forth, the fees usually go away,” Thomason said after contacting his personal insurance company.
However, his $1,000 fee remained after the insurance company intervened.
Loss of use is a contractual term that rests on shaky legal foundations, according to USA Today.
The clause ensures that the rental company does not incur financial losses due to the unavailability of the car.
These fees compensate the rental company for potential revenue lost during the repair period.
Typically, the renter is responsible for paying this fee.
May accumulate daily until the vehicle is returned to service.
The cost can increase if the rental driver chooses the wrong insurance policy.
Most credit card and personal auto insurance policies do not cover the loss of use clause, according to USA Today.
They can combat costs for some consumers, as Thomason attempted.
Instead, there are several states where drivers can challenge the legality of the fees.
Courts in Colorado and Texas have upheld a car rental company’s ability to impose loss-of-use fees on consumers in previous court cases.
“Loss of use
Rental companies can include the clause to help maintain finances:
Rental drivers were shocked by thousands of dollars worth of loss of use clauses in their rental contracts.
The rental company may lose future profits after a driver is involved in an accident.
Loss of use fees ensure that the company can recover the money despite the unavailability of the car.
The clause could cost drivers large sums of money.
This driver said he was confronted with a $15,000 bill after being involved in an accident.
Most other states, however, do not have codified rules regarding the clause.
“There are limits to what companies can put into a contract, and all contract terms must be reasonable,” Andrew Stoltmann, a Chicago-based attorney, told the publication at the time.
Stoltman said the clause typically rests on “problematic” legal grounds.
For example, Connecticut does not have a rule on the books that determines a rental company’s ability to charge loss of use, for Matthiesen, Wickert and Lehrer.
In states where the rules are not specified, drivers can attack loss of use fees for a variety of reasons – but they will need the proper documentation.
First, drivers must request documentation from the rental company.
These companies often do not have accurate rental records, including those used during repairs, USA Today reported.
By asking companies to prove that the car would have been rented, customers can dispute unjustified fees.
If the company does not provide the necessary documentation, disputing the charge through a credit card company is another option.
Additionally, threatening to sue can be an effective strategy.
However, rental companies cannot be taken to court over the issue in Texas and Colorado.
Thomason said she was finally able to get rid of the fee after hiring the rental company herself.
This story originally appeared on The-sun.com read the full story
