Rental Car Liability Law

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 What If the Rental Company Does Not Have a Car for Me?

Rental car companies are in the business of renting cars to the general public, and in the great majority of cases they will provide a rental car to a customer who desires one.

At times the company may be out of supply of a certain model of car, but the larger companies will always have some kind of car available. If you have reserved a car and the company does not have that car available for you when you arrive, the company must do everything it can to find you a comparable car.

When you go to pick up a car you have reserved, if the only thing available is a more expensive car, then you are entitled to that car without paying the higher rate. If no other car is available at the rental car company and you are forced to rent from another company or to find alternative forms of transportation, you should be reimbursed by the original car rental company.

Can the Rental Company Refuse to Rent a Car to Me?

In certain circumstances. Nearly all rental car companies will refuse to rent to certain people, including:

  • Drivers who do not have credit or debit cards: Most rental car companies require a major credit card or debit card as a deposit when you rent a car. They don’t take cash. This is because they want there to be backup credit available if the customer has an accident or gets into other trouble
  • Drivers under the age of 25, or sometimes 21: Sometimes, car rental companies will refuse to rent to drivers under the age of 25 or 21; others may charge extra for renting to a younger driver. This happens because statistically younger drivers speed more and have more accidents.
  • Drivers with bad driving records: Most rental car companies will refuse to rent a car to drivers with serious violations on their records, including multiple accidents or drunk driving charges. This is to protect the company from having to deal with serious accidents or injuries if the driver were to continue their bad behavior.

What Additional Fees Can I Expect When I Rent a Car?

In addition to the daily or weekly rental fee, rental car companies charge other special fees. These include, but are not limited to:

  • Additional fees if there is more than one driver
  • Additional fees if one of the drivers is young (say, under 25)
  • Vehicle drop-off fees for dropping the car off at a location different from where the car was rented
  • Refueling charges if the driver does not return the car with a full tank of gas
  • Fees to cover extra taxes if the city, state or federal government charges them
  • Fees for auto insurance if this is not provided by your own insurance company
  • Fees for picking up the car at an airport. This is more expensive than renting from the same company at an off-site facility because the airport charges the rental company fees
  • Some companies place a hold on the customer’s credit card in order to cover unforeseen expenses
  • A fee for canceling a reservation within 24 hours of the intended rental period

The car rental company is required to inform you of these additional fees before you sign the rental agreement.

Should I Purchase Rental Car Insurance?

Before you are allowed to take the car from the parking lot, you will have to have rental car insurance.

If you are an insured driver on a policy for your own car, then most likely you do not need to purchase additional insurance from the car rental agency. Check to see if your car rental is insured under any of the following:

  • Personal car insurance
  • Personal home insurance
  • The credit card you are using to pay the bill
  • Employer’s car insurance, if you are renting the car for business purposes
  • Automobile club memberships, such as AAA

If you do not have personal car insurance, you will have to purchase it through the rental car company. Insurance through the rental car agency is quite expensive, generally adding $15 to $30 per day to your bill. Of course, it can save you thousands of dollars if you are in an accident.

The four types of common rental car insurance include:

  • Loss-and-damage waiver (LDW) or collision damage waiver (CDW): coverage if the car is damaged or stolen
  • Personal accident protection: pays for medical expenses for yourself and passengers (if applicable) in the event you get into an accident
  • Supplemental liability protection: protects you from liability if you damage property or other vehicles
  • Personal effects coverage: covers the cost of belongings stolen from the rental car

As mentioned, these protections may already be available through your credit card or current auto or homeowners insurance policy. Some have limitations, though, so be sure to confirm how they work with your credit card issuer or insurance providers.

Can I Cancel a Car Rental Agreement?

Yes you can. However, with most rental car companies, you will be charged a fee if you cancel the contract too close to the day you were expected to rent a car. The time limit is usually 24 hours before the time of the intended pickup of the car, and the amount of money is usually one or two days’ rental fees.

Can I Get a Refund If I Cancel My Rental Car?

If you have paid in advance, you can get a refund for what you have paid.

However, as mentioned above, if you cancel the contract too close to the date of the intended rental, you will likely be charged a fee.

How Do I Complain about a Rental Car Company?

If you have a complaint about a rental car company, the first step is to try to resolve the issue directly with the company’s customer service department. Most rental car companies have an email address or a customer service hotline or email address set up for receiving complaints.

If you’re not satisfied with the company’s response, you can escalate the issue by contacting the appropriate regulatory agency in your area.

For example, you can file a complaint with the Federal Trade Commission or the Better Business Bureau. You can also contact your state attorney general’s office or consumer protection agency. It is a good idea to consult with an attorney about how to correctly and completely file a complaint with one of those agencies. They often have specific rules that a consumer may not be aware of.

Keep in mind that when submitting a complaint, it’s important to provide as much detail as possible, including the date and location of the rental, the names of anyone you spoke with from the company, and a complete and succinct description of the problem you experienced. When you have them available, it can also be helpful to provide supporting documents (such as receipts or photographs).

In addition, you may want to consider leaving a review of your experience on popular travel websites, such as Yelp, TripAdvisor, or Google.

Do I Need an Attorney for My Rental Car Problem?

If you have been in an accident involving a rental car, consult a car rental lawyer. An experienced liability lawyer can advise you of your rights and let you know what possible courses of action you can take. If you are sued, your attorney will also explain to you what defenses you might have.

Of course, if you have a dispute with the rental company, you can find a lawyer to sue the rental car company and guide and protect you throughout the process. A lawyer can evaluate your case and advise you whether you have a good chance of winning, and can help you save a lot of time and money if your case is not likely to be resolved in your favor.

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