SCAMS BULLETIN Host Jay White is a volunteer attorney who provides free legal services for low income seniors in San Mateo County, California.

October 20, 2019

RENTAL CAR HIDDEN FEES

Rented cars play a major role in transportation. Most car rental companies are ethical business operators. But there can be unexpected costly charges.  

Before you rent a car, to avoid surprises when you pay your bill, ask about added charges.

Rental companies usually offer renters an opportunity to avoid liability for damage to a rental car — for a price. If you pay for their Collision Damage Waiver (CDW), you can avoid liability for damage to the rental car while you are driving it.  A CDW does not cover your liability for injury to persons or damage to their property. For that you need your own personal liability policy.

A collision damage waiver is not technically insurance — the company won’t pay for any injuries to yourself, damages to your personal property or your liability to persons who may be injured while you are driving the car. 

However, you may not need their Collision Damages Waiver. You may be covered already through your own auto or homeowner’s policy. If you’re traveling on business, you may be covered under your employer’s insurance. Some credit card companies provide members with free rental car damage protection when you use their cards to pay for rentals.

If you don’t buy CDW coverage and aren’t covered by your personal auto insurance policy, you accept responsibility for any damages — and could be liable for the full value of the car.

Here are hidden charges frequently added:

*Taxes. The rental company will add required state, city, or county taxes — and their own sales tax rates — to the price of your car.

*Early or late return fees. Some companies may charge a fee if you return the car more than 24 hours early. While you may not be charged a fee if your return is late by less than 30 minutes, you still may have to pay a full day’s charge for optional items, like navigation systems and liability coverage options.

*Airport surcharges. Renting a car at the airport, even when the rental company shuttles you to its off-site lot, can increase the rental rate.

*Fuel charges. If you don’t return the car with an equal amount of gas, most companies will charge you their price for it — which usually costs more than if you fill the tank at a local station.

*Out-of-state charges. Check to see if the company lets you drive outside the state where you rented the car. If so, ask if any charges apply.

*Equipment-rental fees. Adding items like a navigation system, car seat, or ski racks will cost you.

*Additional drivers. There may be a charge for adding other drivers to your contract.

*Drop-off fees. There may be a steep fee for dropping off the car at a location other than where you picked it up.

*Tolls. Most rental companies offer ways to pay tolls automatically, but that convenience comes at a cost. As you compare companies, think about whether you’ll be using toll roads, bridges or tunnels.

Keep these things in mind as you start your search for a rental car:

*The size of the rental car can impact the price you pay.

*You can shop ahead and compare costs for the type of car you’re interested in renting.

*Your Driving Record may be Important

Many companies check driving records when customers arrive at the counter, and reject those whose records don’t meet company standards. Reasons you may be disqualified from renting a car are recent violations, including:

*reckless driving

*seat belt law violations

*accidents, regardless of fault

*leaving the scene of an accident

*convictions for Driving While Intoxicated (DWI) or Driving Under the Influence (DUI)

*driving with an invalid, suspended, or revoked license

You can ask the rental car company in advance whether they check customers’ driving records.

                                                            #