Was I lied to or is this really the law in FL? This seems like an entirely unreasonable way to compute a loss of use fee - the actual time the car spent in the shop would be any rational person's assumption of the fair number. Loss of use is defined as the time the car is out of use while in the process of being repaired when it could have been rented by other customers — meaning that the car rental company lost out on revenue and profit as a result of the accident. 2 years ago. When I picked the car I was prepared for the CDW hard sell and declined. If you hold loss of use coverage as part of your auto insurance policy, this essentially translates to rental car reimbursement if your vehicle is out of commission while undergoing repairs after an incident. When I picked the car I was prepared for the CDW hard sell and declined. I ended up taking the $26/day coverage because my personal auto does not cover loss of use. By using our Services or clicking I agree, you agree to our use of cookies. American Express Optima Platinum paid for the If the rental company had other unused similar cars at the time, insurers argue the rental company suffered no loss from the unavailability of the damaged car. Press question mark to learn the rest of the keyboard shortcuts. The Car Rental Loss-of-Use Loophole. The inquirer asked whether a rental car company may recover all elements of damage to a rental car, including physical damage, loss of use, diminution of value and administrative fees. At Enterprise, the largest car-rental company, loss of use is based on the total number of labor hours from the repair estimate, divided by four, which the company says is a conservative estimate of labor hours that can be incorporated into each work day, and then multiplied by the daily rental rate. Need advice on settling "loss of use" for rental car accident. u/tatertat2. Usage e.g. A third-party loss of use claim is different. Last year we purchased Allianz Loss of Use ins thru AAA. Join our community, read the PF Wiki, and get on top of your finances! In the car rental industry, a “loss of use” charge is precisely as indicated — a charge based on the time needed to repair the vehicle. Civil Code § 1939.05. Car rental companies are now asking for reimbursement of the lost revenue that vehicle would have generated had it not been in a garage for repairs. Press question mark to learn the rest of the keyboard shortcuts. Rental receipts, consider possibility that they may be inflated. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. In other words, the property owner is being compensated for loss of use, not loss of revenue, while the vehicle is out of service. Yes, Costco offers a slight discount and a 2nd driver at no additional fee. Amazingly, this is true even though the rental car company has other vehicles available for rent. In Texas, a person whose car has been totally destroyed as a result of a tort (car wreck) may recover only the value of the car, while a person whose car is repairable may also recover for loss of use of the car. I was advised to reach out to you for your help. Insurers want to see the rental company's fleet utilization logs. So I always just rented from enterprise, even if a few more bucks a day. I rented a car through Costco in Sarasota, FL. Primary car rental coverage for damage or theft to the rental vehicle, loss of use, and applicable related charges; Coverage limit of up to $100,000 for damage/theft but less can be selected; Up to $100,000 accident death/dismemberment ($250,000 for California residents) If it's a company policy, which sounds more likely, that makes a lot more sense. Protect the Car (Loss Damage Waiver) At Hertz, we want you to know the facts before you rent. I would start by calling your insurance company and ask them specifically. The charges for damages depends on the fair market value of the car, loss of use from how long it takes to repair the damage and any administration charges. In turn, the rental car company bills you the amount of money which it claims you owe to compensate it for the loss of use of the vehicle — even if it supposedly suffered no financial loss.A p… Archived. Auto. LOSS OF USE (Per day) $ PRIVATE CARS Up to 1,600cc and 97kW (130bhp) [Category A of COE] 100-120 60-80 1. The doubt comes from something the industry now calls "loss of use." Loss of use on rental car. The salesman said I had to show that my personal auto insurance covered "loss of use" that it is the law in FL. 3. PurCo V. Koenig: A Win for the Industry. Interesting. I rented a car through Costco in Sarasota, FL. Car Rental "Loss of Use" HELP! Can anyone tell me where to find car rental insurance (other than that sold by the rental car agencies) that will cover "loss of use"? I declined insurance from the rental company because I thought I was fine - not only do I have my "normal" car insurance which covers rentals, but my credit card company also covers anything my normal car insurance doesn't, when I rent using my car. The inquirer has not provided any facts from which such question emanates, therefore, the … Cal. [TX, CO] Rental car "loss of use" - what are my options? For example, if the estimate requires 26 labor hours, then the formula works as follows: 26 labor hours divided by 4 = 6.5; add 2 weekend days = 8.5; add 3 administrative days = 11.5; multiply 11.5 by a daily rental rate $100.00 = a loss of use charge of $1,150.00. Sorry, this post was deleted by the person who originally posted it. They generally refer to cars with OMV of $35,000 and above on first registration That is essentially redundant with what rental car companies call a Loss Damage Waiver or Collision Damage Waivers. Check with car rental firm if they allow early return with no extra charges. Luxury cars are dependent on make and model. Car rental companies charge renters for loss of use in case of accidents, though the charges have been controversial. TIL you can rent cars through Costco. It doesn't appear in any feeds, and anyone with a direct link to it will see a message like this one. Rental Car Loss Of Use. Loss of use means precisely what the words state—no more and no less.Damages payable by a commercial general liability (CGL) policy because of lossof use are a type of damage that are the consequence of not being able to useproperty. I rented a car for a weekend trip. I don't have rental car reimbursement on my insurance coverage, so my insurance directed me to call the other driver's insurance to get a rental. When a person suffers the loss of use of their vehicle for any period of time, they have the ability to be compensated for a rental car, public transportation and/or any other reasonable transportation expenses incurred as a result of the loss of use of their vehicle and/or transportation means. After I left, I tried Google but could find no law/requirement. TravelBuzz - Rental Car Damage--LOSS OF USE - I returned a rental car to Budget recently (in Washington state), and they noticed a 2 inch long scratch/ding on the passenger side fender--I didn't notice it, so it must have happened in the hotel parking lot the night before. Press J to jump to the feed. Insurer will reimburse via bank transfer. But rental coverage is effectively limited to actual costs incurred. “Loss of use” is a car rental concept that, on the surface, seems reasonable. But under the hood, loss of use looks more like a junk fee. Loss of Use is a murky surcharge, as the laws vary from state to state. Auto. Recently I was advised on this Transportation Board that Visa covers Loss of Use. If you damage a car and it has to get repaired, you compensate the company for what it would have made as a rental if the vehicle had been available. No. Not 100% sure if it's law or not (agree with the previous comment that it sounds like company policy) but my seven years of p&c insurance experience has never heard of it being mandated! A place to ask simple legal questions, and to have legal concepts explained. Might consider that in the future. "Loss of use" is a car rental concept that, on the surface, seems reasonable. Mondragon appealed for various reasons but the focus here is on the loss of use. travelling salesman 2. Posted by MAIA on Aug 16, 2019 12:01:00 AM QUESTION. Sounds like they have not told you the amount you are entitled to for loss of use per day, you'll need to know that before you get a rental car. The salesman said I had to show that my personal auto insurance covered "loss of use" that it is the law in FL. If you damage a car and it has to get repaired, you compensate the company for what it would have made as a rental … If I would rather take cash instead of having them set up a rental for me, can I do that? Within the CGL policy and subject to all exclusions andlimitations, covered loss of use results from being deprived of the use oftangible property, and the coverage applies to pay such damages whether or notthe tangible property has been physically injured.… I hope this is the right subreddit for this. I don't know if it's the law or not, but it is not illegal for a sales associate to lie or to backtrack on what they said. In my case, garage estimated 4 days but car was ready for collection in 2 days. Car Rental "Loss of Use" HELP! In my Google research, I found Amex has an annual rental car coverage option (like $50/yr) that will cover it. So I called Visa & here is the scoop - 1. As others have pointed out, LDW is not liability insurance.In fact, it is technically not insurance but a waiver of the rental company's rights to charge the renter for damages to the car subject to certain exceptions.. "See the original story here, outlining the case and implications for the car rental … Press J to jump to the feed. Moreover, the contract I signed with the rental car company does not spell out in advance that they will use this completely counterintuitive calculation. The coverage offered by most credit cards is only coverage for damage to the rental vehicle itself. If you decline CDW because you believe you are covered through your personal auto insurance or credit card, getting slapped with Loss of Use fees can come as a shock. For those who may not know, 'Loss of Use' is what the rental car companies charge when a car is unrentable due to accident or theft. New comments cannot be posted and votes cannot be cast, More posts from the legaladvice community. If it isn't, please direct me to the correct one :) Last September, I totaled a rental car in Utah. This question was answered based upon current rules, regulations & statutes in effect on July 19, 2019. If you have an accident with a rented car, that vehicle is likely to be out of commission for a number of days as repairs are made. $72 for 11 days rental. New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. You can do without the LDW/CDW if you pay for the car rental with a … In a historic ruling for the car rental industry, the Colorado Supreme Court has ruled that "PurCo is entitled to recover loss-of-use damages irrespective of actual lost profits. Thanks, I checked with GEICO, they don't cover loss of use. Caveat: Loss of use is inapplicable for the period of time you were provided a rental vehicle by the at-fault party’s insurance during the time you were deprived of the use of your car. Loss of use car insurance coverage may be cost-effective if you rely on your vehicle for daily commuting and other responsibilities, and would rather not deal with the inconv… One of the topics I’ve seen discussed a number of time is; “loss-of-use” Basically it goes like this: When you rent a car and cause enough to damage to the rental, that it needs to go into the repair shop, you will likely need to the compensate the rental car company for loss of revenue while the car is off the road. I know most personal auto insurance and/or credit card coverage does not cover loss of use and was prepared to take the risk. Posted by. Close. United States - Car rental "loss of revenue" insurance - I checked with my auto carrier to make sure I'm covered for my Thrifty rental car in Honolulu next week. I was at fault for the accident as I received and paid a $150 failure to yield citation. There are a lot of misconceptions and misunderstandings about coverage on your rental cars these days, but one thing is certain: not knowing exactly what you are covered for, could have a … Loss of Use is a murky surcharge, as the laws vary from state to state. Program coverage won't apply to charges or expenses for loss of use of the rental car, rental agency fees, or taxes." You can cash out the damages to your vehicle. 5. Rental car/loss of use I was in a car accident not long ago in Georgia, and today the insurance companies assigned 100% fault to the other driver. This was stated by the Tyler Court of Appeals in 1994. For example, California provides that loss of use is not recoverable by a rental car company from a renter or authorized driver, but it may be recovered from third parties who cause damage to rental vehicles. This coverage is not included in policies by default like liability coverageis — you would need to opt-in — but is typically not an expensive addition. The Car Rental Loss-of-Use Loophole If you decline CDW because you believe you are covered through your personal auto insurance or credit card, getting slapped with Loss of Use fees can come as a shock. Cookies help us deliver our Services. The focus here is on the surface, seems reasonable focus here is the scoop - 1 slight! Of debt, credit, investing, and anyone with a direct link it. Credit cards is only coverage for Damage to the correct one: ) Last September, I found Amex an... Possibility that they may be inflated $ 50/yr ) that will cover.! 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