Auto Insurance company is refusing to cover my rental car. What can I do to fight this?

As a claim adjuster I run across this situation quite often. So let me throw out some ideas for you.

1. Don't ever listen to an agent about claims. Agent sell insurance and most don't know enough about how claims really work. This will save you a lot of hassle, anger and heartbreak. Your agent led you astray with what they told you.

2. If you have collision coverage AND rental coverage on your car process the claim through your company. It is normally a much less painful process. Yes, you will have a deductible but your company will collect that back for you in about 45 to 60 days.

3. If you do not have rental coverage on your policy or you insist that you collect from USAA then you have to accept some things. USAA owes you for reasonable expense for loss of use of the car. They do not have any control over Enterprise charging more to people under the age of 25. In 20+ plus years of handling claims I have seen two young people sue over the extra fees for youthful drivers that car rental places charge. Both people lost. The courts found that reasonable charges for loss of use were owed. It is not the fault of USAA that you are under 25. I also realize it is not your fault either, but legally they don't owe it.

4. A solution that I have used many times is to have the person under the age of 25 use their parents car. Then I pay for the parents to rent the car from Enterprise and everybody is happy.

Good Luck

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RE :Auto Insurance company is refusing to cover my rental car. What can I do to fight this?

Exactly a week ago I was involved in an accident at the fault of another driver. The other driver's insurance company (USAA) has been sitting on the case not doing a damn thing. I had to call them yesterday just to get them to read my accident report, and accept liability. They hadn't even contacted the policy holder! They told me that they would set me up with a rental car, and cover the fees. Today I went to Enterprise to pick up the rental car and was asked if the insurance company (USAA) had mentioned anything about a underage bracket fee. When I told them that they hadn't, the woman at enterprise contacted USAA. It was then that they stated that they would not pay for the underage fee (I am 19), which is about $22 per day. Naturally, I was completely outraged. Both my insurance company and USAA's offices are closed at this time, so I have to wait until tomorrow to contact them. I was told by my agent that because the accident wasn't my fault, ANY cost that is a result of the accident MUST be covered by the other driver's insurance company. What can I do about this? I don't have the money to pay for the fee, but I need the transportation. I've already been without transportation for a week.

Follow 10 answers

That is a great question. I am in the same boat. I rent a car a few times a year and don't have insurance either. The $10 a day stuff from Enterprise the other guy was talking about is only bare bones insurance and does not cover much. Most rental co.s charge $30 bucks a day for full coverage. That works out to 11K a year for insurance!! That is outrageous. They must be making huge profits on this. I know when I use my credit card, that some insurance (collision, I think) is provided. But it is not nearly enough coverage. I would like to hear some property and casualty professionals chime in on this question. Anybody know a company who offers reasonable car insurance rates to non-vehicle owners? Alton.......You don't seem to understand. Thisi s about people who do not own cars. You can not get a quote comparison on a car that does not exist.

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RE Auto Insurance company is refusing to cover my rental car. What can I do to fight this?

Exactly a week ago I was involved in an accident at the fault of another driver. The other driver's insurance company (USAA) has been sitting on the case not doing a damn thing. I had to call them yesterday just to get them to read my accident report, and accept liability. They hadn't even contacted the policy holder! They told me that they would set me up with a rental car, and cover the fees. Today I went to Enterprise to pick up the rental car and was asked if the insurance company (USAA) had mentioned anything about a underage bracket fee. When I told them that they hadn't, the woman at enterprise contacted USAA. It was then that they stated that they would not pay for the underage fee (I am 19), which is about $22 per day. Naturally, I was completely outraged. Both my insurance company and USAA's offices are closed at this time, so I have to wait until tomorrow to contact them. I was told by my agent that because the accident wasn't my fault, ANY cost that is a result of the accident MUST be covered by the other driver's insurance company. What can I do about this? I don't have the money to pay for the fee, but I need the transportation. I've already been without transportation for a week.

I have to agree with Fighting Saints. As a claims rep for a large insurance company, I too have had to deal with this situation many times. Quite simply, the insurance company does not owe for extra fees that the rental agencies charge. The rental agencies are their own entity, separate from the insurance companies. By law, insurance companies are not required to pay for gas, mileage, and in some states, rental insurance. They are also not responsible to cover the deposits and other fees that the rental agencies choose to charge. They have no control over that.

And I also agree that agents do not know as much about claims as they like to think. I spend a lot of time having to apologize to customers for the misinformation they were given by their agents.

You are SO wrong. USAA doesn't have to pay any additional fees what so ever. It's not their fault Enterprise won't rent you a car, they only have an obligation to pay you a reasonable amount for rental. If you really need a rental then call your own insurer (oh, you probably don't HAVE rental coverage, huh?).

To the boat load of idiots that will be screaming for you to 'get a lawyer' here's a tip: USAA has dozens of lawyers and they are not afraid of any two-bit ambulance-chaser you may hire. It will only cost you money in the long run.

I will base this answer on you were "Not at Fault" in this accident.

You have a couple of options to try before getting a lawyer. One if you are not at fault and the particular adjuster handling your claim seems wrong. As based on your description he might be, I would call then back but ask to speak to the supervisor for the adjuster handling this claim. Also there are words insurance companies do not like hearing such as"Bad Faith handling of a claim" More states apply punitive damages to a insurance carrier if they handle a claim in Bad Faith.

The second option which I don't like but is available is have your insurance company handle the claim if you have collision and rental on your policy. you agent is partly correct. I think he was just trying to keep you from having a claim on your policy. That's not bad except you are having trouble. if you file a claim on you policy, note you could lose certain discounts, claim free for one. Even though you were not at fault it is a claim on your policy. The only plus side to doing this is your insurance company will generally works harder for it's clients. If you file the claim with them they go after the other insurance company and car owner. They have to get your collision deductible back for you in addition to getting back from the other insurance company the money they spent.

Sometimes It may not be right but it could give your peace of mind with them handling it. You will have to decide if it's worth it.

I would talk with the other insurance companies supervisor first, then decide if you want to use the second option.

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RE :Auto Insurance company is refusing to cover my rental car. What can I do to fight this?

Exactly a week ago I was involved in an accident at the fault of another driver. The other driver's insurance company (USAA) has been sitting on the case not doing a damn thing. I had to call them yesterday just to get them to read my accident report, and accept liability. They hadn't even contacted the policy holder! They told me that they would set me up with a rental car, and cover the fees. Today I went to Enterprise to pick up the rental car and was asked if the insurance company (USAA) had mentioned anything about a underage bracket fee. When I told them that they hadn't, the woman at enterprise contacted USAA. It was then that they stated that they would not pay for the underage fee (I am 19), which is about $22 per day. Naturally, I was completely outraged. Both my insurance company and USAA's offices are closed at this time, so I have to wait until tomorrow to contact them. I was told by my agent that because the accident wasn't my fault, ANY cost that is a result of the accident MUST be covered by the other driver's insurance company. What can I do about this? I don't have the money to pay for the fee, but I need the transportation. I've already been without transportation for a week.

Follow 14 answers

I have a hunch that you aren't telling us everything that's involved here; USAA consistently has a superb reputation for claims service, so something isn't adding up. (And I'm not an insured of theirs!)

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