mia

That won't work. The insurer requires documentation of the specific damage, and they know what it should cost to have it repaired.

My opinion is that insurers exclude certain types of damages because the amounts claimed tend to be arbitrary. Rental car companies will assert a claim for "loss of use", but the insurer refuses to pay unless the company produces a log demonstrating that all other vehicles were rented. Likewise, the resale value of a car may be diminished by an accident, but what evidence has Alamo produced to support the $3,000 claim? It's a back-and-forth tussle between rental agencies and insurers. They deal with one another every day.

TravelinSperry

I get all that, but shouldn't Amex Insurance "fight" on behalf of its customer? Try to have Alamo prove the diminished value is legit? Is there anything those of us who paid for and are relying on Amex Premium Car Rental Protection can rely on other than for them to just accept whatever Alamo says?

guv1976

Why should Amex fight on your behalf over the amount of a loss that their policy does not cover (diminished value) in the first place?

TravelinSperry

Someone should fight over it. When I hire an agency to protect me I want them to fight for me. Otherwise what is to stop Alamo from saying damage was $1 and diminished value was $7,999? As opposed to the posters suggestion of $5,000 in damages and $3,000 diminished value?

guv1976

Why would Alamo low-ball the damage estimate, especially since Alamo must know that many credit-card coverages will not cover diminution of value? Alamo's interest is in getting paid, not in getting paid by you instead of by Amex.

You did not hire Amex to go to bat for you over all claims that arise from an auto accident, only for those claims that their insurance covers. (And it's in Amex's interest to do so anyway, when it's on the hook.) If you hit another car with the rental, and the other car's owner claimed an inflated amount of damage, would you expect Amex to negotiate with the owner on your behalf, even though Amex does not cover third-party liability?

TravelinSperry

Good point about Alamo not low-balling the damage estimate. They are more likely to get paid from insurance than the person who may not have funds. Just crazy to me that Alamo can charge you for this and you have no recourse to fight their estimate of diminution of value.

mia

What gives you this idea?

vijaykrishna

Hello All,

Thank you for the response. I am waiting for AMEX claims department response on this. Meanwhile I called geico yesterday(My insurance carrier) and explained them the situation. To my surprise the lady said Diminished value is not covered by them as well. But I could not find any where in their policy saying that terms and Conditions about Diminished value.. More over before my trip when I called Geico the rep confirmed that all coverage that I have on own car will be applicable to my rental car as well. But they mentioned adjuster will give more info on this... And I can't have the claim with both Amex and Geico, it need to be either one of them.. I have a 500 $ deductible with Geico.. So am just waiting to hear from Amex first before any decisions . Also trying to find what is Montana's law about Diminution value ..

mia

There is no contradiction. Your policy does not cover diminish value for own car. If you are in an accident Geico will pay to repair your car, they will not send you an extra $X,000 to offset the reduction in eventual resale value.

vijaykrishna

but example if I hit some other car and the other guy files a claim then Geico is liable to pay the Diminshed value of other car ?

mia

Not in my experience. My insurer will pay to repair your car, but will not compensate you for the reduced resale value, BUT this area is controlled by state laws and what is true in Florida could be different in another state.

vijaykrishna

ok. Might be. Because one of my friend was hit by car last year in Arizona and other driver was at fault. My friend opened a diminished value claim with other party's insurance(All state) and they paid my friend around 4000 $ after discussions. So I believe it might vary based upon state to state. I am trying to find Montana's laws ...

mia

This document asserts that a Montana court Ruled that the property had not been completely restored unless there was no diminished value after repairs:

www.independentagent.com/education/vu/siteassets/documents/pdf/miscellaneous/diminutionofvaluestatebystatelistingchart.pdf

vijaykrishna

This is what Amex T and C tells
Excluded Items
Benefits will not be paid under this Plan for any of
the following:
1. costs attributed to the Rental Company's
normal course of doing business and
expenses assumed, waived or paid for by the
Rental Company or its insurer;
2. Damage that has occurred prior to
Possession of the Rental Car;
3. tires, unless other Damage occurs to the
Rental Car from the same Accident, or Theft
of the entire Rental Car occurs;
4. defect in the manufacture of the Rental Car;
5. diminishment of value, unless required by
law;
6. depreciation, unless reimbursement for
depreciation is required by law;



So does the ruling helps my case in anyways ?

mia

I am not a lawyer, but such a court ruling "might" mean that payment is required by law. I would ask American Express' insurer if you are concerned about it.