Expert: webfoot - 12/19/2006

Question
We recently rented a vehicle  on our vacation to Maui. I'd declined the standard insurance LDW. All went well and we returned the car in the same condition - no incidents. A few days ago I received a letter from the rental company indicating that their recovery dept has received a loss/damage report on the vehicle ( no other information like type of damage, estimate etc was provided). They've asked for my insurance information. Though my regular auto insurance (as well as the credit card that I booked the car with) covers insurance on rented vehicles, my question is -

1. At the time of returning the rented vehicle in-person (not a night drop off) shouldn't any claims (perceived or otherwise) be highlighted? Can a car rental company send a letter claiming there was a damage - how do I know this damage (if any) was caused while it was in my possession?

2. Whats the extent to which the credit card company covers such cases?  

Answer
To answer question 1., I can say that as it is not the policy or requirement of a rental agency to inspect a vehicle upon the moment of return.  It is not uncommon for them to notice the damage upon further inspection, generally while the vehicle is being washed for the next customer.

That said, it is also not uncommon for rental agencies to claim the same damage over and over again and it is therefore your responsibility to carefully inspect it at the time of pickup and note every single ding and scratch on the rental agreement.

If you didn't do that and they are trying to claim prior damage, there is a valid way to fight back.  As a claims adjuster, I have a standard method of dealing with rental companies.  If they claim damage, I require that they provide a legible copy of every single rental agreement and repair order for that particular vehicle as part of my investigation.  If the damage was prior, there is a good chance that it was documented by a prior customer or technician.  As they are filing an insurance claim, they have the legal responsibility to provide this info and if they refuse to do so, they have no legal right to pursue the claim.  As often as not, they will withdraw the claim upon that request.  

If you have not provided the insurance info yet, I would recommend that you demand this information first.  If they refuse to provide the info, then let them sue you so a judge will ask them for the same thing.  I'd be surprised if they let it go that far.   If you have already provided the insurance info, then call your insurance claims rep and demand that they do not pay any claims until they have reviewed every previous rental agreement for that vehicle.

This technique alone will likely absolve you of any damage that you are not responsible for.  If not, then you should take care of it or have your insurance company do the same.

2.  I do not know the policies and provisions of your credit card agreement.

Good luck!