Here is a story about Darla Vargo. When Darla Vargo's SUV was rear-ended, the at-fault person's insurance company agreed to pay for all repairs and a rental car. Choosing Enterprise, the Deep Creek resident says she was pressured into getting an SUV when all she needed was some basic transportation. "They stated the insurance company has to pay for a comparable auto as the one that is getting repaired," she wrote.
But three days after returning the SUV, Vargo noticed a charge on her credit card for $493.59. Turns out insurance covered only $29 per day for the 21 days her vehicle was in the shop and the SUV was $49 per day. She was told she had to pay the difference (plus taxes and other fees), but fortunately pressured the offender's insurance company to reimburse her for the unexpected rental charge. "I think it is important for people to be aware of what Enterprise is doing so that they don't get caught," she said.
What this local area Enterprise Rent-A-Car location did was an admitted "error on the part of the branch manager," according to Enterprise spokesperson Meghan Maguire. "This is not our standard operating procedure whatsoever," she emphasized.
All of Enterprise's 7,000-plus offices are owned by this privately held St. Louis company with more than 700,000 vehicles in service and a reported $10.1 billion in revenue in 2008.
Vargo received a formal apology from the company's Group Rental Manager for Operations in South Florida and an offer for a free three-day rental. I hope she takes advantage of it and that Enterprise reimburses the insurance company.
Rather than understandably relying on a misinformed rental car company employee, Vargo could have avoided this surprise entirely by just asking a few questions.
"The first thing to clearly understand is what charges you may be responsible for," advised Lynne McChristian, Florida Representative of the Insurance Information Institute. "The best place to get this information is from the insurance company handling the claim," she said.
That information includes confirming the maximum daily allowance and the allowed time limit resulting in the total maximum amount of coverage. Anything outside those parameters is the responsibility of the renter. Additionally, know whether the cost will be billed directly to the insurance company or if the renter pays and is then reimbursed. Either way, get a receipt. Also use the insurance company's preferred rental partners for the best deal.
The company handling the claim can be either the at-fault driver's or your own. Even though the accident is entirely not your fault, consider filing the claim through your insurance company. It then retrieves the money from the at-fault insurance company through a process known as subrogation.
"Some people are more comfortable taking this path because they have trust and confidence in their own insurer and know that it may involve less of their personal time to let the insurance companies work out the details," McChristian noted.
However, going this route will require initially outlaying whatever deductible is in your insurance policy (you'll get it refunded) and having your own rental reimbursement coverage allowing you to immediately rent a car. But that coverage is optional.
"Rental reimbursement coverage is available for only a couple of dollars a month with almost every auto insurance policy, but it is often bypassed by those who believe they will not have a car accident or those shopping only for the lowest cost premium," notes the Consumer Protection Association of America on its Web site. "One year of rental reimbursement coverage costs less than a one-day car rental."
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