pls advise on car rental excess, bros....

[Chongster]

hi all, my friend rented a car from this shop and crashed it into the road divider due to fatigue... looks like his engine is gone (dented in) and airbag has also came out...

 

i've asked most of my friends, and 1 of them who has rented one and been into a serious accident, only paid 3k for the excess, but this car rental shop quoted for 5k from my friend, which he has paid, but the person also says that if the insurance does not pay out for total loss, he might have to pay an additional 10 to 20k to compensate for the vehicle.

 

our point is, whats the use for insurance if they do not cover such accidents? 5k is already very steep for an excess amount, all i've heard is about 2 or 3k, and now they still want 10 to 20k (worst case scenario, we do not really know whats going on between the insurance and rental shop)

 

he's been to the shop yesterday, and they quoted him an example that if he were to rent or purchase a ferrari from a shop and has no money to pay for it, then can he easily crash it into a tree and just pay 3k as the excess, and that can settle the whole matter?

 

any bros have any experience or been in such situations before? what can my friend do?

Edited December 8, 2009 by Chongster

[Neegie]

best to get Black & White.. anything not right.. go file a case..

For wat i noe.. some car rented company run their business using someone else car tat cant afford to pay their own installment to rent out to people..

therefore insurance not by them.. is the car owner..

So claiming is not gonna done by them.. and they might be carroting ur friend.. so beware..

maybe u can find out the ownership of the car..

claiming also affect the insurance..

scenario 1 - they might not wan to claim insurance but get direct cash from ur friend put in pocket or repair..

scenario 2 - both way also advantage, they claim insurance plus also wan direct cash..

 

Anyway lucky ur friend is fine.. Nv drive when fatigue.. no choice den blast music to keep awake.. not worth the price to drive when accident happen..

[Demon]

That shop can't be one of those established car rental company.

 

Take a copy of the rental agreement to a lawyer.

 

My suspicion is that that company isn't running a legitimate car rental ie. the car does not have proper insurance for rental.

 

[sICkbOi-dOt-cOm]

Stupid example... I don't think a ferrari excess will just be 3K.. So stupid..

[theblackmamba]

u might want to look over the rental contract first. what car was it?

[MS]

HOHOHO... sounds like some legal malpractice. How can there be multiple payments? The excess should be paid once and will cover all the repair costs. The amount looks very unsettled. Go to case or the insurance company to check the problem. I hope your friend is ok.

[hailang_82]

Insurance co. will pay the total loss of the vehicle. But is the total loss acceptable to the rental co? Insurance co will value it at market value. Rental co. might took a 10 yr loan without downpayment. So they might make a loss upon getting it at market value.

It is the loss that thye might be asking ur friend to top up.

 

Max excess is 5k. So as to get cheaper premium.

 

It should be stated in the contract the excess he needs to pay in case of accident.

 

The difference betwen the market value and loan by the rental co. shld not be paid by your co.

[hailang_82]

And if you really buy a ferrari and crash it within the first year.. AIG will replace the whole car for you. At a excess of $600. That will be the max you need to pay. Been there done that.

 

Crash a Latio before. Full car replacement with only $600.

[kraikk]

Look over the contract, better still bring it to a lawyer if possible. There should be a maximum excess, usually 5000. Unlikely they were not covered by insurance for 10-20K loss, unless its a fly-by-night rental setup. If not they will be risking a lot each time they rent car, imagine if they have to write off, high chance the hirer cannot afford the entire value of the car.

[Throttle]

excess means the max liability that you have if you drive the car for what it is meant to be driven for.

 

take it to court, thats why you pay taxes.