Rental Company charged us deductible even though accident wasn't our fault

by Steve
(New York)

Back in July, in New York City, I rented a van and agreed to pay extra for the insurance waiver that included a $500 deductible. The van was in an accident and the police report shows that it was the other driver's fault (it was a taxi dropping off a customer).

The rental company still charged me for the $500 deductible - they never provided me with a damage report to justify the full $500, and the vehicle is drivable.

The taxi driver's insurance company says the driver never reported the accident, and they won't do anything until they get a statement from the driver (it's been two months). Meanwhile, I am out the $500.

My question is, given that the rental agency did not provide me with a damage report, can they still take the $500 from my account?

For all I know, the rental agency could keep my $500 without making any claim to their insurance agency to make repairs (the van is drivable) - and they have my $500 as free cash.


Answer:

Hello Steve,

Couple of things here. They do not have to report their claim and they could keep your money. They own the Van and there is no requirement or laws that require the money to be used to fix the damaged vehicle.

However, if you have a damage waiver provision, then there is no reason you have to pay this. The damage waiver is a provision of the contract you signed where they release you from any liability if the van was damaged (including the deductible).

If you signed a good contract (depends on the language of what you signed), they are could be in breach of that contact. Contact an attorney on your area.

http://www.auto-insurance-claim-advice.com
">Back in July, in New York City, I rented a van and agreed to pay extra for the insurance waiver that included a $500 deductible. The van was in an accident and the police report shows that it was the other driver's fault (it was a taxi dropping off a customer).

The rental company still charged me for the $500 deductible - they never provided me with a damage report to justify the full $500, and the vehicle is drivable.

The taxi driver's insurance company says the driver never reported the accident, and they won't do anything until they get a statement from the driver (it's been two months). Meanwhile, I am out the $500.

My question is, given that the rental agency did not provide me with a damage report, can they still take the $500 from my account?

For all I know, the rental agency could keep my $500 without making any claim to their insurance agency to make repairs (the van is drivable) - and they have my $500 as free cash.


Answer:

Hello Steve,

Couple of things here. They do not have to report their claim and they could keep your money. They own the Van and there is no requirement or laws that require the money to be used to fix the damaged vehicle.

However, if you have a damage waiver provision, then there is no reason you have to pay this. The damage waiver is a provision of the contract you signed where they release you from any liability if the van was damaged (including the deductible).

If you signed a good contract (depends on the language of what you signed), they are could be in breach of that contact. Contact an attorney on your area.

http://www.auto-insurance-claim-advice.com/find-a-lawyer.html


Good Luck,
http://www.auto-insurance-claim-advice.com