Fender bender with rental car

[PatSea]

My wife and I, along with my sister and brother in law, just recently returned from 3 weeks in Hawaii. Great trip! Unfortunately during the trip I had a fender bender in a parking lot with a Hertz rental car. Very minor damage to the other car but quarter panel on our rental car was severely damaged. I called the police and they wrote a report. We went back to Hertz and they wrote a damage report and we got a different vehicle. I then called my insurance agent to see how to handle this. They said I needed to handle the settlement directly with Hertz, then I could file a claim with my auto insurance.
Here's a complicating factor: The rental car contract was in my brother in law's name and I was listed as an alternate driver. He paid the rental with his credit card. He did not purchase any of the insurance offered by Hertz, figuring our own auto insurance would cover any damages, or as an alternate the credit card benefit includes collision coverage.
Its been about three weeks and I have not heard from Hertz.
Any suggestions how to handle this? Should I file against my own auto insurance? Can my brother in law file against his credit card?

 

[Bir48die]

You were the driver on record. Since you filed a police report stating that fact I don’t know why his credit card would cover it. In my eyes you’re responsible for this and would submit to your insurance company

 

[OldShooter]

Don't assume the credit card won't cover it. File the claim and find out. There is zero downside and significant upside to this.

 

[Aerides]

I believe in the US, the credit card coverage is for whatever the driver's own insurance doesn't cover (ie, deductible).

Maybe call your agent and discuss in detail?

 

[cathy63]

I believe in the US, the credit card coverage is for whatever the driver's own insurance doesn't cover (ie, deductible).

Maybe call your agent and discuss in detail?

Depends on the card. Most are secondary, but some of the higher end ones offer primary coverage. I know Chase specifically has some that are primary.

The brother-in-law needs to read his credit card agreement and find out who and what is covered before anyone files a claim. My credit cards both cover any "authorized driver named on the rental agreement", which it sounds like PatSea was. If BIL has a similar card agreement with primary coverage, then there's no need for PatSea to get his agent involved at all. If the card is secondary coverage, then you have to file a claim with both.

BIL needs to figure this out very soon though. Claims against credit card insurance have short windows for filing and the hard part is going to be getting Hertz to cough up enough documentation to satisfy the cc's insurance co within their required time limits. He may end up paying things like "loss of use" out of pocket just because the rental cos are terrible about providing adequate proof of these amounts.

 

[audreyh1]

Yeah, I thought authorized drivers were covered. But again review credit card coverage.

 

[Bamaman]

The claim needs to go to the brother in law's insurance company--if he has collision insurance. The credit card insurance is secondary.

Even if CDW had been purchased, it's also secondary to one's personal auto policy in our country. CDW almost seems to be just another profit center for the rental company--because it is.

 

[audreyh1]

The credit card insurance may be secondary. The card I use for car rental is primary.

If CDW is purchased through the rental car company I’m pretty sure that’s primary.

 

[Moemg]

I had a accident years ago with a rental car . Alamo took all the information . I then called my credit card and my car insurance . My credit card covered most of it and the rest was covered by my car insurance .It was settled pretty quickly .

 

[CardsFan]

Years ago (1979 or 80) I had an accident with a rental car, on business. I was always told to decline the CDW, so I had. A few years later I got a call from a former Co-worker (I was at a new employer, in a different state) who said he got a call from a collection agency. I called them back. They demanded I pay them something like $1000 with no back up and no accounting. I told them, that it was not my responsibility, and since they did not know where I lived, they could pound sand (this was before caller ID etc.).

I probably took a hit on my credit rating, but back then there was no easy access to find out. I never heard from them again.

 

[PatSea32]

Thanks for all the responses. If the rental contract was in my name and if I had paid for the rental on my credit card I think the path forward would be much simpler. Although I am responsible for the damages, it's not clear how the insurance coverage works in a case like this.

 

[Senator]

If Hertz has not called, don't stir the pot.

 

[CaptTom]

It'll be interesting to hear how it works out. I'm curious too!

Somewhat related story: I was on a business trip. Rented the car at the airport, drove to the hotel, turned the car over to the valet. End of visit, had the valet bring the car around, drove back to the airport. Got on the car rental shuttle bus and waited for it to leave for the terminal. Drove by the passenger side of "my" rental car on the way out.

There was a huge dent in the side!

Yes, I'd inspected the car when I picked it up. Must have been the valet, or another vehicle in the parking garage where the valet had left it. Of course I never looked at the passenger side before I returned it.

Funny thing, I never heard a word. Maybe the corporate folks handled it.

 

[PatSea32]

Ok, here it is 7 weeks after the fender bender and I have heard nothing from Hertz. I don't plan to contact them, but I'm concerned about the amount they might eventually charge for "loss of use" of the vehicle. Any thoughts?

 

[BigMoneyJim]

I got rear-ended in a Hertz car on a business trip in mid-2000s. The other insurer refused to pay for loss of use, so Hertz tried to bill me for it. I ignored it and never heard more about it.

That's not advice, just an isolated experience. And the rental was a corporate relationship rental and a corporate CC although the credit card was my responsibility to pay (and get reimbursed).

To clarify, the other insurer did pay for repairs. Since I was rear-ended, it was the other party's fault.

 

[HI Bill]

Ok, here it is 7 weeks after the fender bender and I have heard nothing from Hertz. I don't plan to contact them, but I'm concerned about the amount they might eventually charge for "loss of use" of the vehicle. Any thoughts?

I would be concerned about this, too. When I had extremely minor rental car damage in Hawaii, I was charged for a week or two (can't remember) loss of use. It's in the OP's best interest to settle this as quickly as possible.

 

[Senator]

Ok, here it is 7 weeks after the fender bender and I have heard nothing from Hertz. I don't plan to contact them, but I'm concerned about the amount they might eventually charge for "loss of use" of the vehicle. Any thoughts?

No news is good news.

 

[Sunset]

I would be concerned about this, too. When I had extremely minor rental car damage in Hawaii, I was charged for a week or two (can't remember) loss of use. It's in the OP's best interest to settle this as quickly as possible.

Why ??
The loss of use claim will not grow longer because OP didn't phone. The longer it goes, the less likely there is any charge for it, after a couple of years OP could feel sure the issue is dead.

 

[HI Bill]

Why ??
The loss of use claim will not grow longer because OP didn't phone. The longer it goes, the less likely there is any charge for it, after a couple of years OP could feel sure the issue is dead.

The the rental car agency waits to repair the car until the claim is settled, there could be a prolonged loss of use period? I'm not sure of how this works, but it would worry me knowing that it had not been resolved, and not knowing if the car had been repaired and placed back into the rental pool.

 

[PatSea]

Quick update. I received a request for damages from the third party representing the rental car company for about $1K which included about $150 for loss of use. The credit card company paid all of the damages except for the loss of use. I was satisfied with this and paid the loss of use myself.

 

[Sunset]

^^^ Thanks for the update, always great to hear the end of a story.