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Mandatory Car Rental Insurance: Watch Out For Bait-And-Switch Pricing
Mandatory insurance. Those are two words that I hate to hear when I'm renting a car outside the U.S. On Thursday night, I spent an hour and a half in a Thrifty Rent a Car location near the airport in San Jose, Costa Rica, trying to understand how an eight-day rental that I expected to pay $394 for was somehow going to cost me either $786 or $946. I'm an experienced traveler and I should have known better. Here's how I got scammed and how you can avoid the same fate.I spent a huge amount of time shopping around for a deal on a rental car for an eight-day trip to Costa Rica and the best price I found was through Thrifty, which quoted me a price of $394 for an automatic transmission SUV. By American standards, this was no bargain, but in Costa Rica during the high season it was the best deal I could find.
I received a confirmation email from Thrifty that listed my estimated "mandatory charges" (base rental price, one-way drop off surcharge, vehicle license fee) plus optional charges (booster seat for child), and then the "estimated grand total" price. Two days before we arrived in country, the local branch also confirmed the reservation and the price via email. Even in the fine print of both emails there is no mention of any additional charges or mandatory insurance costs.
We arrived at the Thrifty location near the San Jose airport on Thursday night and, despite the fact that there was only one person in front of us in line, we waited 40 minutes to find out that our $394 rental car was actually going to cost $786 if we opted for the lowest possible level of insurance or $946 if we chose the more comprehensive coverage. We spent nearly another hour unsuccessfully trying to untangle the mess and it quickly became clear why we'd waited so long to get to the counter in the first place: everyone was arguing with them about the same issue as they were shocked to find double the rates they expected.
I thought it was a scam because the agent was jotting down all these prices on a scrap of paper as though he was making it up as he went along. I've been hit up for mandatory insurance in other countries before but those costs were more an annoyance than the budget buster this was. So I walked out and tried two other rental car places, both of which quoted similar rates.
Rather than pay nearly $100 per day to rent the car, we took a cab to our hotel and I studied the confirmation email from Thrifty. Even in the fine print and "terms and conditions" of the confirmation email there was no mention of the mandatory insurance. I called Thrifty to complain and all they could manage was their contention that my rate was only an "estimated grand total" and not an "actual grand total."
I went back to Thrifty's website and tried to make a new reservation, this time studying all the fine print in the terms and conditions section and still couldn't find any mention of the huge mandatory insurance cost.
I also checked the section on car rentals in my guidebook (Frommer's) and there is no explicit warning about the exorbitant mandatory insurance, only a boilerplate sentence about checking to see if your existing insurance in the U.S. will cover you in Costa Rica.
I'm sure that Thrifty isn't the only company guilty of this sort of bait-and-switch pricing, and as an experienced traveler, who has rented cars in a variety of countries, I should have clarified that their "grand total" estimate really was going to be the grand total. But I took the term "grand total" at face value. Next time I'll know better and you should too. In the meantime, which way to the San Jose bus station?
[Photo credit: jepoirrier on Flickr]
I thought it was a scam because the agent was jotting down all these prices on a scrap of paper as though he was making it up as he went along. I've been hit up for mandatory insurance in other countries before but those costs were more an annoyance than the budget buster this was. So I walked out and tried two other rental car places, both of which quoted similar rates.
Rather than pay nearly $100 per day to rent the car, we took a cab to our hotel and I studied the confirmation email from Thrifty. Even in the fine print and "terms and conditions" of the confirmation email there was no mention of the mandatory insurance. I called Thrifty to complain and all they could manage was their contention that my rate was only an "estimated grand total" and not an "actual grand total."
I went back to Thrifty's website and tried to make a new reservation, this time studying all the fine print in the terms and conditions section and still couldn't find any mention of the huge mandatory insurance cost.
I also checked the section on car rentals in my guidebook (Frommer's) and there is no explicit warning about the exorbitant mandatory insurance, only a boilerplate sentence about checking to see if your existing insurance in the U.S. will cover you in Costa Rica.
I'm sure that Thrifty isn't the only company guilty of this sort of bait-and-switch pricing, and as an experienced traveler, who has rented cars in a variety of countries, I should have clarified that their "grand total" estimate really was going to be the grand total. But I took the term "grand total" at face value. Next time I'll know better and you should too. In the meantime, which way to the San Jose bus station?
[Photo credit: jepoirrier on Flickr]
Filed under: North America, Costa Rica, Transportation, Budget Travel, Central America
Reader Comments (Page 1 of 1)
Daniel Feb 15th 2013 6:29PM
As someone headed to CR for the first time here in a few weeks I thank you for this 'heads up'. I have already planned on utilizing the public transportation system as much as possible, but the option of renting a car when needed would be nice too-
Bruce Bowe Feb 15th 2013 6:29PM
You said it! The EXACT same thing happened to us at Thrifty in Cancun, Mexico a year ago. Same short line and long wait. We were tired from the flying, and got the car anyway, figuring I would argue later. No dice. We had to pay it. I tried to get it adjusted and my credit card company (Cap One) was no help at all. Total bait and switch. Somewhere in the process, I was told that IF they had known I had a 20K limit or more on the card, the insurance would have been waived. Probably BS. We used to use Thrifty maybe 5 times a year. Now, not at all.
Patricia Feb 15th 2013 6:28PM
The same thing happens in the States also. Was in Orlando in January and rented a car from Advantage. Quoted price via email was $235, final cost ended up being $480. Some of it was expected as they charged us $10/day to add a second driver but they also charged a deposit to my credit card without informing me. Being from Canada I ended up loosing out on exchange rate when they returned money to me because although the official exchange rate is par the bank dinged me for the buy rate.
I will never use Advantage again...
editor Feb 16th 2013 5:43PM
You did the right thing by walking away. Thrifty should have disclosed the mandatory insurance pricing. Although it was a change in your plans, the best way to get around is to utilize the tour bus and van system associated with the sites you are going to see. From San Jose, I went to Arenal and back. I could not imagine driving myself. The bridges are one lane and the oncoming car seems to race with suicidal intention so they can cross first. For me, renting a car would be too stressful in the land of Pura Vida. Check out my travel hacking tips and resources at http://www.MileageUpdate.com
Maggie Yang Feb 16th 2013 5:42PM
It happens all the time. I mean, some stores are doing this on purpose to gain income. Sometimes the customer can do nothing about it because they need the car. This makes for a very bad deal.
BrianM Feb 16th 2013 10:39PM
Same thing with Avis, and National in Cancun, Belize, and Costa Rica, even worse was the car was a class below what I had to pay for as well. with both companies and at both locations. I am even elite status with both, Really shitty service in Central and South America so far.
Vehicle2Hire Feb 20th 2013 2:10AM
It can be become because some store like this can be do activity such like this for get money more and more but i think people can do full inquiry about this store before paying any type of fees or charge so there is no problem in future related to this trouble.
Thanks
http://www.vehicle2hire.com
Patrick Hewitt Feb 21st 2013 11:59PM
Hi Dave,
As a tour operator specializing in Costa Rica, I have to tell you that the mandatory insurance is for real. The insurance company is owned by the government, and coverage is required for ANY vehicle on the road.
It isn't as sinister as it seems. This is mostly about liability for damage or injury that may occur while you are down there. Most US companies don't cover vehicles in foreign countries, and the credit card "coverage" that some want to use has loads of restrictions and conditions. It is unfair for the injured party to try to collect from a foreign entity. Hence the requirement.
But I agree that Thrifty should have been more up front. I guess they figured that they had you in a corner, and you would just give in.
We always make our clients aware of this charge, and include it in our quotes. That way there are no surprises when you arrive.
I hope you find this useful.
Pat Hewitt
Costa Rica Travel Exchange
www.SmartCostaRica.com