Farmers won't pay for the rental car insurance

by Lucky

I was involved in a car accident a few weeks ago where the rear side of my car was damaged. I called the driver at fault's insurance company, which is Farmers Insurance to get a rental car since I did not caused the accident.

I went to Enterprise to get a rental car ($25/per day) and insurance ($18/per day). Enterprise told me that they would direct the bill to the other insurance company.

However, after i returned the rental vehicle, Enterprise charged my credit card for the insurance charge, which is $18/per day($185). They said that Farmers insurance will pay me back.

I spoke with Farmers Insurance's adjustor the following day, and he refused to pay me because he said that I have a coalition comprehensive and i didn't need to get the Enterprise optional insurance.

The thing is that i didn't know that once you get into an accident, your insurance will automatically transfer over to the rental car. Now, i don't know what to do. I do not feel that i should be responsible to pay this. In addition, why should i even involve my insurance in to this since i was not at fault in this accident.

Could you please give me some info on what I can do now? Thanks!


Answer:


You are in a difficult situation. Most states require you to cover whatever expenses you have while in a rental car as if you were driving your normal car. For example, if you did not have an accident, you would have to pay for gas, insurance, and the wear and tear of your car (mileage). Therefore, insurance companies decline the payment of gas, mileage, and/or insurance.

Some states however, ensure that the insurance company does pay for insurance and mileage (Montana).

The best thing for you is to contact the department of insurance of your state, here is a link for a link to all 50 states: http://www.auto-insurance-claim-advice.com/State-Traffic-Law.html and see what the regulations are for your state. (If cannot find a straight answer, call them).

If you are not satisfied with what they tell you (that you owe this), there are two things you can argue and do.

1. Enterprise KNOWS the system very well. They work with insurance companies all the time. They work with major carriers, if they knew that you had collision, and then they should have advised you that you did not needed. Again, they deal with this type of situation on the daily basis, and for them to sneak a fee is not correct.

2. You insure your car (with certain mileage and insurance), which will undoubtedly is a. older than the rental, b. with less mileage. These will probably mean that the rental was “nicer” or more expensive than your car (this might not be the case, but I do not know what car you drive and what car you rented). What I am getting at is this: It is unfair for you to carry insurance in a new car, nicer, more expensive than your own. You pay insurance every month that is substantially cheaper than $18 per day. This fee and risk (to insurance newer vehicle) is a direct result of the accident and the person that hit you.

So what to do.

Always consult with an attorney. You can also dispute the charge with your credit car company as Enterprise never told you that you did not need this or check if you had insurance.

You can also go after the person that hit in small claims for the $185 showing that this is a consequential damage of the accident and it is owed, but the insurance company declined to pay.

See http://www.auto-insurance-claim-advice.com/small-claims-court.html for more information about this subject.

Good Luck, Lucky
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