by thrifty » Sun Sep 26, 2010 05:40 am
I was parking my uninsured rental car on the streets of new york today, and while backing into my lot, I accidentally hit a motorbike parked on the side of the street as well. The owner was on the scene, and so were cops, so he insisted we made a police report, which we did.
This is my first time incurring an accident and I need some advice on what I should do. I had declined all insurance from the car rental company, but I believe that my credit card has some rental car insurance coverage.
The rental car is undamaged, but the bike's fender was scratched, and the owner claimed the costs a few grand to fix. (It was one of those custom fenders apparently).
Can you please advice what is the next course of action I should take, and what's the best way to resolve this as cheaply as possible? I unfortunately won't be able to pay a few thousand dollars right now to fix this.
This is my first time incurring an accident and I need some advice on what I should do. I had declined all insurance from the car rental company, but I believe that my credit card has some rental car insurance coverage.
The rental car is undamaged, but the bike's fender was scratched, and the owner claimed the costs a few grand to fix. (It was one of those custom fenders apparently).
Can you please advice what is the next course of action I should take, and what's the best way to resolve this as cheaply as possible? I unfortunately won't be able to pay a few thousand dollars right now to fix this.
Posted: Sun Sep 26, 2010 02:57 pm Post Subject:
Most rental companies won't let you drive their vehicle without at least liability coverage. Did they not check?
You may have 1st party coverage (for the rental) but I don't think credit card companies extend liability coverage.
You want to inform the rental company as they, as the owners, may be able to be held responsible. If they foot the bill, rest assured that they will then want to collect from you (most likely via your credit card).
If you have personal insurance, you certainly want to notify them.
If the other party has a custom bike then they might have collision coverage on their own policy. If they do, they can file under that and then their company will come after you for repayment. Many insurance companies can set up a payment plan. If they do, don't miss any payments.
You can call your credit card company but again, I don't think they include liability coverage.
Why would you rent a vehicle without having liability insurance? Also, why kind of shady rental company is this that they allowed a rental to go out without verifying the driver had coverage?
Posted: Mon Sep 27, 2010 03:18 am Post Subject: Best Auto Insurance
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Posted: Mon Sep 27, 2010 10:43 am Post Subject:
tcope is right in describing it as a 'shady' rental co. I'd smell a scam if I come across such an offer initially.
Now, you probably need to understand the importance of making regular payments in time (if they come up with a payment plan). A cousin of mine is gradually coming out-of-debt ever since he started making payments with a credit repair company.
Posted: Mon Sep 27, 2010 12:23 pm Post Subject:
Thanks for the responses so far. I had assumed that the insurance from my credit card had covered everything, but now I know better. Will be getting liability going forward for sure.
On the same topic - the bike owner is going to get back to me on the cost of repairing the damage, and if it's not too outrageous, I'm willing to settle that with him directly.
Any advice on how to best document this to avoid any further claims from him in the future? Thanks.
Posted: Mon Sep 27, 2010 03:37 pm Post Subject:
Most rental companies won't let you drive their vehicle without at least liability coverage. Did they not check?
I've probably rented vehicles 20 times in the past four or five years . . . and not not once was I asked to show proof of insurance -- not by Hertz in Hawaii, by National in Atlanta, Thrifty in Portland, Avis or Enterprise in Sacramento, and any of a dozen other places I can think of. (And I don't have any credit cards, just a debit card with the VISA symbol, and despite claims on car rental websites to the contrary, have never been declined a rental for using a debit card.)
Perhaps, as a 50-something white guy with mostly gray hair, it's because I don't fit the "profile" of an uninsured person. At the same time I've been at the rental counter, I've seen other rental agents ask 30-something white women with three crying kids in tow, 50-something African American or Hispanic men, and 20-something white, brown, black, red, and yellow men and women to show proof of insurance before they can rent a car.
And the ACLU is worried about the police in Arizona doing racial profiling!
I don't think it has anything to do with "shady" rental companies, although it certainly could.
If you have personal insurance, you certainly want to notify them.
andif it's not too outrageous, I'm willing to settle that with him directly.
andAny advice on how to best document this to avoid any further claims from him in the future?
Will be getting liability going forward for sure.
If you are even remotely considering a private settlement, you need to share this with your insurance company up front. Because simply reporting the accident will start a claim file. You can still be charged with an at-fault accident in your insurer's claims system even if they never get a claim from the damaged party. Might not want that to happen.
As for always buying the rental car insurance in the future, if you have certain types of credit cards, there may very well be extended coverage for the rental vehicle (as long as it's not a truck of any kind, or other commercial vehicle, such as a delivery van). And your personal auto policy coverage always follows you when you drive a passenger vehicle (other than the rental truck/commercial vehicle, which is a common exclusion). So, generally, there is no need to purchase the HIGHLY INFLATED rental car company's coverage.
Posted: Mon Sep 27, 2010 07:06 pm Post Subject:
So I'm guessing you don't have any personal auto insurance? You don't own a vehicle or usually drive one but you have a drivers license?
If you want to deal with the bike owner directly, that is up to you. If you settle with him you may want to see if he's willing to sign a property damage release. You can find on online (claimspages.com I think has a few).
If you don't settle with the driver, I'd certainly tell the rental company as they may need to address the loss. You might also be considered an insured under their policy so they might need to pay the claim and might not be able to seek recovery from you. Really depends on state laws and their policy.
Posted: Mon Sep 27, 2010 07:20 pm Post Subject:
That's correct. I do not own a vehicle and don't have any personal auto insurance. I have a driver's license and rent occasionally when the need arises.
Posted: Tue Sep 28, 2010 03:15 am Post Subject:
Well, it might have helped to state that up front. You can purchase "named non-owner" coverage which will be less expensive than the rental car coverage. Won't help in this circumstance, but will in the future.
Hindsight is 20/20. Using a rearview mirror is a good idea, too.
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