Brattflyer

I think the bottom line here is ALWAYS read the T&C with everything.

For the last three years I have rented cars exclusively with the United MP Business Visa card because it was my understanding that they were the primary insurance carrier for vehicle accidents. Last Friday while backing up in a crowded parking lot I dented someones door. There was no damage to the rental vehicle. The police came and took pictures and I hurried to catch my plane. At the first possible moment I called Visa insurance claims only to be told the primary coverage does not cover liability. I guess I should have known that, but it's hidden in the T&C's and I never saw it.

So I immediately called State Farm and filed a claim with them. Today I was told by my agent that Virginia law holds the rental car company responsible for the first $10,000 dollars of liability damage before it is passed on to the secondary insurer, so they (State Farm) won't be covering me. I called Hertz about this and they told me that I was responsible for any damage to the other car and they won't have anything to do with this, and because I didn't report the accident to them within 24 hours, under their T&C's they are not responsible at all. I didn't file an accident report because there was no damage to the rental vehicle and I was hoping to keep this simple.

Now I am looking at having to pay several thousand dollars out of my own pocket for a new door for the damaged vehicle. I'm owning up to making several mistakes in this fiasco but I am amazed at not having any insurance coverage. Any ideas or suggestions about how to deal with this?Also, is it possible to buy rental car liability insurance direct so I don't have to pay the rediculous daily rate charged by the rental companies?

patchan8984

They never cover liability, not even AMEX Primary car insurance option carries any liability.

Sorry for your situation though.

CrazyOne

It's true that the coverage you get from credit cards only ever covers the rental car itself, not any other cars you may hit.

I dunno anything about how that Virginia law works, but things sound odd in what you've been told. I can't see how a time limit affects whether or not Hertz is liable, for instance. Either they are or they aren't, and the latter does seem more likely, just don't know why they're giving you some BS about reporting in 24 hours.

I'd be most upset with State Farm. It's not reasonable that you hit another car and are not covered by your own liability policy if the only alternative is that you are out several thousand dollars. If somehow this is truly the case, I'd switch companies. Doesn't sound right to me.

You might want a legal consult if you're looking at possibly thousands of dolalrs. This reminds me of the other thread about both cars being damaged and one not covered by anyone (which also didn't sound right).

BiziBB

I'm also sorry to hear that you have found yourself in this situation.
Do you have any kind of travel insurance coverage that may help? I also think you'd want to get advice about your legal rights & responsibilities.

Brattflyer

This what I found out today:The bottom line is you are not protected in Virginia for the first $10,000 of rental car liability insurance unless you take the sli ( supplemental insurance). As a result of a Virginia court case where the victim and the rental car driver had the same insurance carrier, the court ruled the rental car companies insurance is responsible for the first $10,000. If I don't take the additional insurance the rental company comes after me. State Farm kicks in above $10,000. The business about the accident report just makes it easier for the victim to come after me. The victim doesn't want to file a claim with their own insurance company for fear of a rate increase.

There are two solutions to this non-coverage issue, One is to always buy the sli at about $12 a day. If you rent alot this can become a big expense. The second is to buy a non-owner car liability policy. The web says they go for around $300 a year and most insurance companies offer them. I will check on this tomorrow.

I caan't really blame State Farm, they are just following Virginia law, But, the system really sucks and we frequent travelers are in jeopardy. The learning here is don't take anything for granted, Check the T&C.

flysurfer

The German AMEX Platinum card covers 500,000 EUR in liability (and will also top-off existig liability insurance) and 50,000 EUR CDW/LDW, the latter with a deductible of, IIRC, 800 EUR. Naturally, a German Centurion card will cover liability, as well. Definitely much more reasonable than paying US$ 300 per year just for extra insurance, or even $12 a day.

According to an article in the WSJ, no U.S. issued CCs cover rental car liability.

USA_flyer

If you're paying for it why are you having to shell out for a new door when all they have is a dent? The owners of the other car have the problem in that they have a dent which they want repaired, they have the problem so I don't see how they can be dictating the terms to you! I can't imagine an insurer is going to cough up for a new door, they'll do it as cheaply as possible, so don't take the shaft either!!

A decent bodyshop should be able to make an as new repair for much much less. And demand 3 quotes from 3 reputable garages before agreeing to any costs.

Lesson #1 in any car accident is NEVER accept liability even if it is your fault. It can invalidate any cover you do have. Let your insurance Co or attorney figure out liability.

guv1976

Sorry to hear of your misfortune. Although not precisely the same situation, you might find this recent thread informative:

http://www.flyertalk.com/forum/showthread.php?t=527154

Please let us know what you find out about the availability of non-owned automobile liability insurance.

CrazyOne

It would be interesting to make some noise about this in Virginia, as it seems clear to me that the people who made these decisions have no idea what they've unleashed for situations like yours. Unfortunately, living in Vermont, you're not likely in a position to make that kind of noise. The thing is, locals in Virginia rent cars too. Everyone who rents cars there needs to be aware of this and, if they have any sense, should work to change it. What really should happen is that SLI should be *standard* for Virginia rentals. Although this may not cover every scenario I suppose, see next paragraph....

Sorry you had to experience it. It still doesn't sound right to me, but I am sure you are checking all angles before simply paying up. But if you know, I am curious: does it apply only to cars rented (actually picked up) in Virginia, or just any accident involving rental car that occurs in Virginia? I guess you would know this for sure if you picked your rental up somewhere other than Virginia, but otherwise you probably wouldn't know....

Does the fine print of your policy note this exclusion for cars rented in Virginia? I'm still a bit baffled that a court ruling in Virginia can cause them to say "Well, not our problem" when something happens there. Very nice loophole for them.

BTW, I don't know if you'll be able to get a non-owner liability policy when you already own a car. I mean, the point of those is to have liability coverage when you don't own a car. When you do own one, you already have it. And why wouldn't the non-owner liability fall victim to the same exclusion in Virginia? See why I keep thinking there's something fishy here?

Brattflyer

I'm still enquiring about the non-owner liability insurance, I do want to reiterate one thing I learned as a result of this mess. If you are renting in Virginia you must accept SLI insurance at time of rental, or have non-owner auto liability insurance or you will be personally responsible for the first $10,000 of damage to another vehicle.

Helena Handbaskets

I'd think the lesson from this for most of us is to purchase and expense the SLI when renting in Virginia, at least when traveling on the company's dime, unless you rent 25 or more days in VA per year (in which case, buy and expense the $300 policy).

Schurr

I have a non-owners liability policy with State Farm in Illinois for this very reason. My premiums are under $200 for 6 months with a home address in the city of Chicago.

Steve

redbeard911

I checked with my agent when I first started renting cars a lot. He told me that my basic policy covers rental cars. I'm with Farmer's in Colorado.

guv1976

Do you have other coverage with State Farm, or is that your only policy with them? (I am trying to figure out whether they, or anyone else, will sell non-owned automobile liability insurance as a stand-alone policy.) Thanks.

Schurr

At present time, living in the city, I do not own a car and have no other auto insurance. I bought this policy when I sold my truck with the understanding it would cover me for auto rentals. This thread made me nervous, so I called my agent, and yes I am covered for liability while driving rental cars. I am not covered for the rental car itself by this policy but I never believed I was. (I will be hopping into a rental car about an hour from now, in fact; hope I didn't jinx myself and am heading for an accident!)

Steve