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Ask Gadling: Car rental scams, overcharges and paying for damages you didn't cause

When it comes to rental cars, you can't really live with them, and you can't live without them. Despite weird pricing methods, overpriced gas charges and shady insurance tactics, sooner or later you'll show up somewhere in need of a vehicle.
Thankfully, most rentals will make it from start to finish without any problems, but eventually, you are going to find yourself face to face with a rental company that claims you damaged their car, kept it longer than agreed upon or forgot to fill up the tank.
So, here are tips on how to deal with rental car company deals and scams - and what you can do to prevent and resolve issues.
Always pay attention to the contract

Logical tip, right? Rental car companies are extremely punctual. When you enter your rental information online, you'll be asked for the exact times you need the vehicle. This is where they'll get you - show up early, and they'll add a few hours to the rental, show up late, and they may even charge you an extra day. The funny thing is that if you add extra hours when you place the rental order, the cost almost never goes up.
So - make sure to add a few hours to the front and end of your rental to allow for flight delays or early arrivals. Always print your online rental agreement and bring it with you. If you used a discount code when making the reservation, be sure to bring the coupon or page showing you are entitled to the discount.
When you arrive at the rental desk, take a close look at the contract, and compare it with what you printed at home. Do not let the rental company change the contract without discussing it with you. If you are offered an upgrade, make sure that any overages are charged at the original rate - you wouldn't be the first to get a free upgrade, but be charged the upgraded rate for returning it an hour late.
If you are using an elite desk to pick up your vehicle, you'll usually bypass the desk and drive straight to the gate - but even here, you'll be given a rental agreement before driving off, so take a minute to go over the fine print here, and be sure to mention to the agent any damage you noticed on the vehicle (more on that in a moment.)
When asked whether you need insurance, you'll usually be offered several different policies - most of which are already included in your own auto insurance policy or credit card. Be sure to check this before you arrive at the airport. Don't pay for any insurance already covered by your own policy or card.
When renting a car, your credit card is your best friend
If you have a major credit card, chances are it'll come with a variety of insurance protections built in. If not, consider upgrading to a card that does. When I was faced with a $2900 bill for a quarter inch scratch on a Mercedes I rented in Europe, American Express took care of the whole thing, and all I had to do was sign one piece of paper. Without the card, I would have been on the hook for the entire bill.
Always do a walk-around inspection before accepting your vehicle
What takes 30 seconds, and can save you $3000 on your insurance? (Hint: it does not involve calling Geico.) It is the rental car walk-around. Before driving off the lot, always do a close inspection of the entire care. Renting at night? Pull out your flashlight. Make sure you report every single ding, dent, scratch, scrape or missing body panel to a car rental agent. Then, get them to note it on your rental agreement and make a note of the name of the agent that witnessed the damage.
Never, ever accept their word that it is "ok" - when you return the car with damage that was not your fault, claiming someone said it would be "ok" won't be enough to get charges waived.
I know how much of a waste of time this is, and I'm sure you just want to get the hell away from the airport and check into your hotel, but damage to rental cars is big business -and if you can't prove you did not damage the car, you will be charged to get it fixed.
The gas pricing scam

Isn't it convenient that gas stations around the airport charge up to 20% more than the same brand away from the airport?
I know of one major international airport where the gas station is owned by the largest rental operator - making for a perfectly legal racket. When you rent your vehicle, you'll be asked how you plan to fill its tank - you'll either fill it up yourself, have the rental firm fill it up for you upon return (pre-arranged) or just ignore the whole issue and pay $7/gallon when they realize the tank is half empty. Pre-paid gas is a scam because no matter how much you use, you'll pay for a full tank of gas. The only way to make this work is if you know in advance that you'll arrive at the airport running on fumes.
Whatever you do - don't just return the car with an empty tank. Of course, if you are running really late for the last flight of the day, you don't have a choice, but if you let the rental company take care of filling up the car, they'll fill it with special Unicorn juice that costs three times the current gas price at the local station.
One word of advise: always keep your gas receipts, and make sure you use a local station no more than 2-4 miles away. I've experienced a firm that claimed the gas station I used was too far away to let the car qualify as "full" - so they charged me $15 for what they claimed was two gallons.
Upon returning the car, the rental firm claims you damaged it

Funny how the rental company lets you drive off the lot without checking their car, but insists on checking every corner of it when you bring it back. Even if they don't do an immediate inspection upon return, rest assured that they will check it out, and charge you for any damage that was not reported on the rental agreement. And don't think that they'll ignore a single thing - even the smallest scratch is enough for them to charge you.
If you return a car and the inspection uncovers damage, always check against the rental agreement to see whether the damage was already reported. If the damage is new, and you had not seen it when you inspected it yourself, you are out of luck - and will have to pay for it. If possible, make photos of the damage from all angles and write a clear description of the damage the rental company claims you caused. This will prevent them from adding other damage to the repair bill that was not caused by you.
In some cases, they may not even contact you, they'll just charge your card for the entire amount they feel is fair. Talk about a nasty surprise when you get your statement.
And get this - they'll also charge you the full non-discounted rental price for every day the vehicle is out of commission while someone repairs said scratch. This means that the kind of damage you can get fixed at the local body shop for $200, could cost the rental firm $2000 to fix. Rental car damage is big business - and you could end up being the one that funds it.
Now, there are of course incidents where the damage is not only your fault, but also quite evident. In those cases, you'll want to contact the rental firm before returning the car and contact your own insurance firm or credit card company. If the vehicle is no longer drivable, ask them to bring a replacement.
When returning your car, always ask for a receipt
This is where it pays to give yourself some extra time at the airport. When you return the vehicle, wait for an agent to do their inspection, hand them your gas receipt (unless you want them to fill it up) and ask for a final rental receipt. Yes - in many cases you can just drop it off, leave the keys in the ignition and walk away, but if they overcharge you, you'll have a hard time fighting this. Like with rental car damage, they'll simply charge your card without contact you about overages.
[Photos: Hertz rental: Flickr/Alex-S, Car crash: Flickr/Daveeynin, Gas station: Flickr/Fortyseven]
Filed under: Budget Travel, Consumer Activism












Reader Comments (Page 1 of 4)
Carl Aug 31st 2010 8:19PM
My first hand experience recommendation is NEVER rent a car with pre-paid gas. On my last trip, I did this because the fuel advertised by the rental company with "pre-paid" was $2.63 while the area gas station average price was advertised as $2.83 (which was true.) So I thought it was a good idea. Well guess what? I got screwed. When I brought my car back on empty (because I ran it down to the fumes) I was charged for the full tank of gas at the time I rented the car, which was approximately 16 gallons @ 2.63 = $44.00. However ALSO tacked on to the FUEL BILL at the end of the trip was a $7.95 Airport Fuel Usage Fee! PLUS $5.50 for an Airport Fuel Sales Tax (at 10.25% per gallon) So, my total was: $57.45!! If I had fuel up outside the airport 16 gallons at $2.83 my total fuel bill would have been $45.28, so instead of saving $3.20 (16 gallons at $2.63) I was taken for $12.17!
Lesson learned.
The Truth Aug 31st 2010 10:06PM
Good to know Carl. After reading all the fees and surcharges on rental car contracts one would definitely feel they are being scammed. One quote given to me over the phone for a one week rental ballooned to an additional 200 dollars at the rental desk once the fees were figured in. Another time my chosen class was not available so the rental officer announced how lucky I was to be offered a double class upgrade. After I called my insurance company I found out MY insurance definitely would not have covered the car fully. I did a whole lot of complaining and ended up getting additional insurance coverage beyond what my policy covered for free. It really boils down to experience, paying attention, asking question and THINKING before you act.
Cutie Aug 31st 2010 8:21PM
If you rent a car in Orlando watch out. They have unmanned toll booths on smaller roads. I threw the coins and one got stuck in the metal, I drove off the lights flashed red , and no one to talk to. Fine, $25.00. EZPASS does not work in Florida they have their own system, so if you go through the EZPASS lane with your unit you will get fined. Also they separate the lanes differently, disconcerting to people who drive from Maine to Georgia with EZPASS lanes on the left. Its different just be aware and have change.
Otown Aug 31st 2010 8:46PM
I grew up all my life in Orlando. I never realized it until after I moved to California and started traveling a lot for business, but Orlando has one of the worst highway toll systems in the country.
E Aug 31st 2010 10:04PM
Same thing in New Jersey. Trust me we experienced the same thing, only in NJ and we contested it but to no avail. We almost got tacked on an additional fine if payment wasn't received in time, even though it was in litigation. So be it.
We should have toll roads in NC for all the Northerners that travel our highways going to FL. No they drive through our state free of charge.
John Wharton Aug 31st 2010 8:28PM
I wanted to make a comment and a warning to auto renters from an experience we had.
Please be cautious about using Advantage Rental Agencies.
When I arrived for my confirmed rental, I was told that they did not have the size car I reserved. They assured me they "would put me in a car that met my needs."
After a lot of shuffling and wrong size and dirty cars, I drove away.
My fault - I did not check my new rental rate - IT WAS DOUBLE THE QUOTED RATE.
I tried to get it adjusted over the phone; with no success.
I finally drove 180 miles to return the car a week early and rent from another agency at the airport site.
2 cents Aug 31st 2010 8:32PM
I once returned a rental EARLY to Thrifty and actually got charged a $10 same-day return penalty. I was livid but it did me no good. Also - check your gas gauge when you first start the rental up. One time I thought I had well less than a full tank. I went back in to the counter and they said the needle would get up to full after a couple minutes - it was just slow. I drove to the nearest gas station and promptly put $15 in the "already-full" tank and called the rental counter to let them know I expected credit. I got it.
ruler777 Aug 31st 2010 8:59PM
Avis charged me $180 for a tire even though I paid full insurance coverage with them. I will never again do business with Avis.
SNB Aug 31st 2010 9:02PM
The worst scammers is Enterprise for trying to charge you for car damage you did not do. Look up the number of legal actions taken against them on. They tried to scam me out of $$$$ for a door that was out of alignment. Fight back by going corporate and state your case clearlly to the top level of management.
I had a car collision center rep who used to work for Enterprise tell me that the local offices encourage return agents to scam damages on unsuspecting customers.
I photograph the entire car that I rent from any company with my BlackBerry before I take it off the lot.
MobyMom Sep 1st 2010 12:27AM
Boy howdy do you have that right about Enterprise! I returned a rental to a lot that did not have an attendant or agent after 7 PM. They had a drop off box and plainly marked spaces for "evening" returns. There wasn't a scratch on the car when I parked it but my card got dinged for $800 for "damage"! Scumbags!
pindragon Sep 1st 2010 1:24AM
Enterprise is the worst place to rent a car. I remted a Van from them once. When I returned it the agent was just leaving the lot, I held up the keys and he just shruged his shiulders and drove off. I left the keys in the unlocked van. They charged me an extra 3 days claiming they could not fine the keys and had to have a lock smith come out and unlock the car. I even told them where the keys were and that the van was not locked when I left. I will not rent from them ever again.
STELLA Sep 1st 2010 5:21AM
we were told we cannot rent from 'enterprise' ever! I threatened to have my lawyer call corporate, we dropped off a car that had an attendant who didnt get up to check our return@5am] we returned home[texas to georgia] 2 days later we were sent photos of so much damage to the car, you would think we were in an accident!!we told them we had no damage to the car, they all but called us liars. now they tell us we cannot rent from them,yay!!!
NOT A SHEEP Aug 31st 2010 9:16PM
Why is it that people always just believe what they read? How many of you read this article and, like a sheep on a farm, just believed everything you read? What qualifications does the author have to tell you what you should or shouldn't do when renting a car. is he your insurance agent? Does he work for your card company? Has he ever worked in car rental? All quite unlikely!!! Here is what you should look at when renting a car: Does your insurance cover "Loss of Use & Diminished Value" (not likely), does your credit card cover Liability Insurance (almost never), and whether or not you want to bother with filling the car up with gas because it's a hassle!!! Everyone is so worried about the car rental companies scamming them they don't bother to ask how their insurance and credit card companies are scamming them also!!!! Full coverage does not mean FULL when you rent a car, in fact many policies only cover the vehicle you own! And credit cards find every loophole in the book-like length of rental or car class- to NOT COVER YOU!!! Good advice: Do your own research and ask detailed questions!!! Not just "Am I covered?" ask "What am I covered for?"
Ryane Aug 31st 2010 10:22PM
THANK YOU for telling it like it is. CC coverage is bull--it's always secondary, so if you have an auto policy, don't be fooled into believing that you will not have to file a claim and pay your deductible...your CC only takes over the damage charges if you do NOT have insurance at all. also, prepaid gas can be useless IF YOU DO NOT USE IT, but if you do, it's pretty legit.
Barleyman Sep 1st 2010 2:15AM
I was involved in an accident in a rental car. I had not purchased the insurance through the rental company. However, I did use my Diners Club Mastercard for the rental.
They covered every penny of the damage virtually no questions asked. In addition, my personal auto insurance covers my rental cars. Much better deal then paying and extra 20 dollars a day through the rental car company.
Tamesha Aug 31st 2010 9:17PM
Oh Metro Car rental is the worse. Me and my fiance had rented a car from them and we were in our apartment asleep and when we went to the car there was a note from PODS stating that they hit the rental. We had called our insurance to find out what to do and they said that since the accident wasn't our fault we shouldn't cover the damage cost. Well Allstate sent a letter to Metro stating that it wasn't our fault and that we didn't have to cover the damage cost, Metro went and threw their insurance on there that cost us a fortune. Not to mention that they want us to pay out $600 and some odd dollars. We were paying weekly and they went and changed everything without telling us and we were paying one price while they had us under another price. All I have to say is watch out for Metro when it comes to their insurance and the cost.
Raechele Aug 31st 2010 9:16PM
I totally disagree about not getting the insurance from the rental car agency. Spending a few bucks now can save you a fortune and a hassle in the long run.
When I've had to use a rental car in the past, I find it easier to buy the insurance. It costs more money, but you can practically set the car on fire and not get charged (Not that I would do somethng like that!). I was rear ended by a drunk driver while in a rental car, and because I bought the extra insurance, they not only took the car back with no hassle and immediately provided a replacement, they even offered to replace my son's car seat (The drunk driver's insurance paid for this, so I didn't need it.). I had the car for 2 months (I had a car accident.) and ended up paying just under $300 for the insurance. It was well worth the extra money.
I also had a friend who's rental was broken into and the door damaged. She had no hassle or problem because of the insurance. Yes, her own insurance would have covered it, but she would have had a deducible to pay that would have far exceeded the amount of money she paid to have that extra insurance. She had the car for one week and paid $7/day for the insurance. Her deductible was $500 with her car insurance. It still worked out well.
Scott Carmichael Aug 31st 2010 9:26PM
I did not say "don't get the insurance", I said don't get insurance if it is already included in your credit card or auto policy. It does not make sense to pay for insurance twice.
blasstamassta Aug 31st 2010 10:40PM
Very vague. Which Auto lending chain are u referring to? Please be specific or I'll be forced to assume you work for an auto-lender.
Herb Sep 1st 2010 12:35PM
Re LDW (loss damage waiver from the auto rental company) -- sure, if your credit card covers damages to the vehicle, there should be no need to purchase it from the rental car company; but if not and even if your own insurance covers it, it may be wise to consider purchasing the LDW; for one thing, it is possible the deductible on your own insurance is quite high, and, for another thing, depending on the circumstances of an accident, the claim you file with your own company might trigger an increase in your insurance rates. I think to make the best possible choice one should look at the length of time of the rental (days or weeks) combined with the daily cost of the LDW; keep in mind that some airport car rental companies allow you to purchase "limited LDW" for a reduced daily rate; for example, perhaps $9.95 a day for up to $3,000 worth of damage. The "peace of mind" of having LDW is a major factor in my decision to almost always purchase this insurance.