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Car rental scams to look out for
Whenever I've rented a car, I've always felt a bit anxious wondering what option to take when it comes to the insurance--or if the price is going to truly be what the information says it will be. Driving off a car lot in something I don't own is thrilling on one hand, but disconcerting in another. What if something goes wrong?
So far, I haven't been scammed, but I've probably paid for insurance I didn't need--that loss of use business makes me wary--and I've double and triple checked what it is I'm signing up for. In many cases, I've been able to work out a better deal like trading up for a roomier car at the same initial rate for a smaller car.
Chris Elliot outlines scams to watch out for in his article "Hell on Wheels: Four Car Rental Scams." They are scams because they unfairly tip in the car rental companies' favor if a customer doesn't pay attention to the fine print. Here are the three that I've watched out for myself. For the fourth one, read his article.
1. Refueling- For example, as with happened with us this summer when we rented our car at the Bellingham airport, the car rental person offered us the refueling charge option. At first it seemed like a fair deal, but it only would have been be a fair deal if we brought back the car with an empty tank. In our case, we turned him down and refueled making sure the needle went above the F right before we hit the airport. Elliot says that sometimes car rental companies will charge refueling anyway, even if the tank is full, but the needle is a tad below the F.
2. Doing anything outside of the initial terms of the contract. If you bring a car back early you can pay for a much higher rental feel. If you've rented for a week, you have a week rate. One day earlier puts you into the pay by the day category. I've always stayed within the original contract so this hasn't been a problem. Years ago I added an extra week to a car leasing deal in Paris for not much extra money, but that sort of deal may be long gone.
3. Damage to the car. Car rental companies have also been known to charge for the same dent more than once. Technically, if the car is damaged while in your care, your insurance is responsible, unless you have the insurance through the car rental company. Elliot suggests taking pictures of the different sides of the car before you drive it off the lot to prevent the chance you may be charged for something you didn't do. This fall I had a car rental after a car accident and made sure the guy marked down any ding I saw no matter how small. The car was white which made me feel nervous the whole time I was driving it. I found myself parking far away from other cars whenever possible.
Filed under: Business, Stories, United States, Transportation, Airports, Budget Travel, News
Reader Comments (Page 2 of 2)
Anita Jan 1st 2008 12:50AM
Another warning about Budget. In the last year I have rented 3 different cars. They all came within a few dollars of what was agreed upon in the original contract.....that is except Budget. I was double the cost. They even charged for a second driver. Never again.
Cathy Jan 1st 2008 1:20AM
Take care renting cars abroad. Once you are back in the USA, it is hard to fight extra charges you didn't incur. I was warned to stay right at the counter until I got my final receipt from them after returning the car. See that all charges are exactly what was agreed upon and when signing to pay (with a credit or debit card) I circled the final total and wrote payment in full. They have added such charges as driving tickets, damages etc. that never occured and again, it is very hard to fight, even with a major credit card when it happened in another country and especially if you didn't wait around for the receipt. Airports especially take advantage of this because they know most people are in a hurry and need to catch a flight, so will just tell the passenger go ahead and they will take care of the bill. I had this happen, but, stuck around (over 45 minutes) to get the final receipt. They kept giving me excuses as to why the bill was taking so long, but, as I watching them, there was nothing at all that should have held it up, they were just trying to outwait me.
J Jan 1st 2008 2:02AM
STAY AWAY FROM ENTERPRISE!!!
MELISSA Jan 1st 2008 1:54AM
ME AND MY MOTHER RENTED A CAR FOR THE FIRST TIME EVER TO MEET MY SISTER HALF WAY I LIVE IN TOLEDO SHE LIVES IN NORTH CAROLINA! ANYWAY WE WERE AT THE RENTAL PLACE I HEARD MY MOM SAY SHE HAD HER OWN INS. NO QUESTIONS ASKED AFTER THAT. ON OUR WAY WE GOT TO CLEAVLAND AND GOT RAN OFF THE ROAD ON THE TURNPIKE RECKED THE CAR THEY SAID OF COURSE IT WAS TOTALED. MOM HAD 2 BROKEN RIBS I HAD A FEW CUTS BUT LIVED. IT COULD OF BEN WORSE WE COULD OF ROLLED THE CAR AND GOT HURT WORSE. ANYWAY THE INS. COMP. WONT PAY CAUSE SHE DON'T HAVE FULL COVERAGE ON HER CAR WITCH HE NEVER ASKED WHAT SHE HAD SO WHO IS RIGHT IN THIS INCIDENT. LIKE TO HEAR YOUR POINT
S Jan 1st 2008 2:08AM
They sold the car I had been driving for two days so I had to return it for them to give me a third car. Then when I went to return the car after driving it for one week to and from work they tried to tell me I had damaged the outside. It got taken to the district mgr of enterprise here in our area and I didn't pay for any damages once my wife finshed with them! So needless to say we will NEVER rent from them again. If you type in ENTERPRISE Car Rental in the search it should still bring up a site that is strickly for people that have been riped off by Enterprise either from renting vehicles from them.. and some actual employees that comment on their SCAM!
kevineanes Jan 1st 2008 2:17AM
I worked for 2 car rental companies during about 10 years. So I know the scams, from the inside. Also, realize that some extra charges are legitimate, not all are scams. I no longer work in the business, so this is an honest, IMHO, evaluation.
Your biggest concern is things that can cost you extra.
First, let's tackle the kind of car you rent, and the "upgrade" or "change of equipment" which means paying more for a bigger car. Many times, the company literally doesn't have the car size you reserved. They have to give you a free upgrade to the next largest car size available, but they're not stupid, they'll ask you to pay more for it even though they're going to give it to you free anyway. If they have the car size you reserved, that's what you'll get. If you care about what type of car you get, book the kind you want. If you just want the cheapest thing with 4 wheels, book an "economy" or "subcompact", this is the price leader and is only like 2% of their cars, so there's a good chance you'll get a free upgrade. Upgrade prices are negotiable, by the way. Anyhow, if you just want the lowest price, book the smallest car, and take it at the counter. Don't upgrade. Go to the car. If it's too small, go back to the counter and negotiate. If you get a free upgrade, you win. If you get the subcompact microcar and that's okay with you, drive away.
Next, let's tackle length of stay. They can charge you more if you stay longer or shorter than you originally booked. Most people who rent cars have a plane to catch. Give them, on the (800) reservation number, your reserved flight arrival time and your reserved flight departure time. If you don't change that, you're good. If it changes, your car rental price can change for better or worse. It doesn't hurt to negotiate, but you may get nowhere, or you may get somewhere. When you find out your return date/time has changed, phone them and ask the new price. If you like it, you're good. If not, ask them to prorate your existing price, for example you booked one week at $140, that's $20/day, and you need an extra day, ask them to prorate one more day at $20 more. It doesn't hurt to ask. If the first person says no, try a supervisor, if you don't get any concession, it didn't hurt to ask.
Now, the very controversial subject of insurance. Now, your own auto insurance may cover you. Ask your insurance agent before you arrive at the counter, but worst case, they should let you call your insurance agent at the counter, besides, don't you own a cell phone? Also many credit cards, especially American Express or gold/platinum cards, include some kind of auto insurance when you rent a car. Call your credit card company, again preferably in advance, the phone number is usually on the back of the card. No guarantees that your auto insurance or credit card covers you, but often they do, so check it out. Obviously if you are uninsured you ought to take insurance IMHO. If you are insured it's a question of whether you want to pay like $10/day for the auto insurance company to take care of it "in house" instead of seeking payment from your insurance company; consider your deductible, raises in your premium, etc. If there is a police report your insurance will probably find out and raise your premium regardless of taking the waiver. By the way, medical insurance and "personal property" insurance for your luggage, etc, IMHO is a major rip-off, in my personal experience almost no customer ever made a claim for this type of insurance (thru the rental company) and the small print of excluded items covered almost everything of any significant value. Another issue is your own risk tolerance, if you are the kind of person who really values lowering their risk and not having to take a chance on paying for damages, it may be worth it to you to pay extra for the car rental company's insurance or "waiver". And if you really don't have insurance for the rental car, you should buy theirs to the extent of covering the car and/or liability for the other guy's car, IMHO this is just being responsible.
By the way, READ THE CONTRACT with the car rental company, don't just sign automatically. This also goes for other legal contracts you may enter to in your life, read them before signing, IMHO this is very important and will save you from many nasty surprises. As an example, a lot of people have been screwed on adjustable rate mortgages because they didn't understand what they were signing. An ethical business will explain and disclose, but caveat emptor, you are the one who stands to lose money, so read before signing.
OK, now we have gas. You should get a full tank no matter what you choose, if the car rental company is doing a professional job. You have two options, prepay for a full tank at a relatively cheap price, but no refund for unused gas. This option is OK if you plan to use at least a full tank of gas, and have the ability to think and plan about how to return it very close to empty. The other option is return it full, or pay a steep price for any shortfall. The key to maximizing this one is, the tank doesn't have to be full for the gauge to read "F". You'll need to allow time to stop at a gas station on your way to the airport. If you run out of time and can't stop at a gas station, you're screwed. But the way to maximize this one is, return it a couple of gallons short, but reading "F".
Now for damages. The digital camera at pickup is a brilliant idea. Shooting along the sides of the car at a sharp angle, not just at a 90 degree angle looking straight at the car, will reveal hidden defects. Anyway, at pickup, you want every possible defect to be noted in writing. If you bought the collision damage waiver or loss damage waiver (different names, same thing, sometimes abbreviated CDW or LDW) you don't have to worry about noting scratches. Suppose you do get blamed for something you really didn't do. Now you want to question the company's record keeping, do they really notice and repair every time a customer returns a car with some minor damage, or is there a possibility this was pre-existing damage and their records are flawed, the previous inspection was not thorough, etc. Ask for detailed records on previous returned car inspections, etc.
I sincerely hope this helps. Some of this takes more time, if you are seeking to save money you may have to spend more time working out the details, if you are in a hurry you may have to be willing to spend more money to drive away quickly.
Notice I never said anything good or bad about any particular company, nor revealed which ones I worked for. But I know the industry after over 10 years, and this should apply in most cases. Insurance replacement and local rentals are a small percentage of total rentals, and they may be a little bit different, in particular they are more subject to "overstay" beyond the original rental period. Did I mention that if you plan to keep the car a long time, say more than a month, you may be able to negotiate a discount or free upgrade in return? The car rental company has bad days when there are few customers and their cars are sitting useless on the lot; a long-term rental helps them during those days and they should be willing to make concessions, you need to find a local manager to talk to about this.
Another thought, if you need a high-demand item, like a minivan on Christmas day, book a long way ahead. Like, 6 months ahead. It will cost you a fortune at the last minute. Weigh the chances you will change your mind, vs. the cancellation penalty (usually around $50).
Best regards,
Kevin
pat Jan 1st 2008 3:31AM
Renting from enterprise was a bad experience for me. They charged me for additional gas which was never full tank from the start. Remember this people are always nice when they want to get your money.
Bj Jan 1st 2008 4:43AM
The next time you rent a car, start by going to Breezenet.com. It's a clearinghouse site just for rental cars (like Hotels.com for hotels). Not only will it give you every rate for every size car for every rental company in your desired area, when you reserve through them, they will give you an "estimated" total for the rental, and unless you make changes to your agreement at the counter or extend your rental, that total is exactly what will be charged to your credit card. No more surprises.
Bob Jan 1st 2008 5:20AM
It would have been nice to be able to read this 'article'. It was 2/5 covered by ads that I could not move or close.
Cindy Jan 1st 2008 5:28AM
Lady0228.... I dont know where you get that Enterprise has a $400 dent scam, but I have rented with Enterprise probably 20 times in the last year, as I didn't have my own car and needed one occasionally to visit my grandma when she was sick. Each time, they checked the dents in the car and when I would notice them, I was told they dont pay attention to dents less than a certain size. I have ALWAYS had very good service with Enterprise. Never had any problems with the gas thing either. The people at the Enterprise place close to my home and very nice people.
Maybe it depends on the type of customer you are, too. Hmmm..
Chris Jan 24th 2008 10:05PM
Um, no, dearie, doesn't depend on what kind of customer you are. They just want a wallet.
Melissa Jan 1st 2008 10:13PM
NEVER RENT FROM BUDGET!!!! They are the biggest rip offs. We rented a car for a week and had to keep it 2 extra days. When we took it back with full + tank they of course tried to charge us $50 for fuel. They charged us a $50 misc. charge which they said was for additional driver that we never signed a separate contract for, but yet getting the car from San Jose airport location does not charge for additional drivers but all other locations do. Seems strange seeing as I thought Budget was all owned and did business the same way. And the biggest rip off is the additonal insurance. They say the LDW (lost damage waiver) is not required, but the agent that rented us the car said we had to get it even if we did get the SLI (supplimental liabilty insurance) that covers everything. Just those two charges alone were over $300. By the time they got through with everything the total charges were about $650 for 9 days. When we called about the extra charges and wanting to know why if the LDW is not mandatory the rental agent insisted we had to get it all they could say was " the only charge we can waive was the refueling charge." So we are going to be contacting the Better Business Bureau and any other agency that has regulations over rental car comanies to file complaints about Budget car rental. So to save yourself from a headache and your wallet from being emptied DON'T RENT FROM BUDGET IN SAN JOSE ON MONTEREY HWY OR ANY OTHER ONE!!!
Vijay Jan 1st 2008 6:32AM
Succinctly...DO NOT RENT FROM BUDGET EVER. They are the most unscrupulous bunch you are apt to encounter anywhere and knowing themselves so well, they are quite aware that no matter what, you are never going to rent from them again anyway, so they don't care if you go away mad or hate them till the day you die, they are going to try and get all they can out of you this one and only time they GOT you in their wringer. Yes, read everything carefully before you sign it, on receiving and returning the car as you should any contract here or elsewhere.
Mark07960 Jan 2nd 2008 11:08AM
Budget Rent-A-Car Settles FTC Charges; “Fuel” Fees Levied on Customers Who Returned Rental Cars with a Full Tank
Budget Rent-A-Car has agreed to settle Federal Trade Commission charges that it failed to adequately disclose a “fuel” fee automatically charged to customers who drove fewer than 75 miles.
According to the FTC, Budget falsely claimed that renters who returned a car with a full gas tank would not incur any fuel charges. The agency alleges that renters who drove fewer than 75 miles incurred a fuel charge whether or not they returned the car full.
The FTC charged that Budget’s fuel fee program was deceptive and violated federal law. Budget did not adequately disclose its billing practice and made deceptive claims about returning cars with a full tank of gas on its Web site, point of sale disclosures, and rental contracts.
A class action suit to recover damages from Budget Rent-A-Car is forming. If you have rented from Budget from 2005 to the present time and drove less than 75 miles you are eligible to participate as a “lead plaintiff” in this case. We are seeking several plaintiffs at locations across the country to show the court how widespread this practice has been. There is no cost to participate. All costs are carried by the attorneys bringing the case, and they will collect their fees from the defendant (Budget) if they win the case. Please contact me to learn additional details, including court awarded compensation to the lead plaintiffs who help bring the bad guys to justice.
For more details, contact me:
Mark Kirschner
973-960-9094
mark.kirschner@verizon.net
Daniel Jan 3rd 2008 9:26PM
I discussed the insurance issue with my agent about a year ago, after seeing a car rental company really grill some other people in line. (I gave off the 'don't f- with me' vibes and wasn't hassled.)
What you want is a 'replacement' rider, or something close to that. It covers your rental car if you've been in an accident and your car is temporarily unavailable. It does NOT cover the full replacement value of the car, it just covers the rental car while your car is in the shop, or until you get the check/replacement for a totalled car.
It works the other way as well. Your standard insurance might cover the cost of damage to the rental car (minus your deductable), but leave you on the hook for their daily charges while the car is slooooowly repaired. This rider picks up those daily charges so you only have to worry about your deductable.
I don't know if it's a fixed cost (under $40/6 months) or something around 8-10% of your regular premium.
Something else to remember -- if you're travelling internationally, verify your insurance will cover you. Most, if not all, major insurers will cover you in Canada. Many, if not all, will not cover you in Mexico.