Car Insurance - Car hire concerns

 
 
 

Consumer watchdogs today are advising hire car customers to take precautions to avoid disputes over damage when vehicles are returned. As many people often fail to have their car checked because the firm's office is closed or they are rushing for flights. But this means customers are then liable for any damage which occurs before vehicle inspection by the hire company.

Consumers are now advised to take photographs as evidence to prove that the car was left undamaged when they returned the vehicle. David Scott from London was unable to have his vehicle checked when he left it at Ancona airport in Italy during his holiday in May. He believed he left the car in good condition but found when he looked at his bank statement that he had been charged for £336 for damages to the windscreen. He claimed that he was not notified of the damage or that he was going to be billed for it by the car hire company. He told Radio 4's Money Box programme:

"I think the cards are stacked against you with car hire companies. There is so little obvious proof required from the car hire company that damage to a vehicle actually occurred."

The radio show was then contacted by dozens of car hire customers who had similar problems with car hire. Many of the complaints included: being billed for upgrades they had not asked for in the first place, extra insurance they had not wanted, damage caused by another driver and incorrect billing over fuel.

The car hire company Auto Europa insists that they always notify their customers in advance if they are going to bill for damages. The company’s customer service manager says they have a set procedure for doing so as she said:

"Our accident department immediately sends clients a registered letter informing them about the damage with photos and damage report."

The consumer watchdog, Which also claimed that they had received similar complaints about car hire companies.

The card company Visa told the Radio 4 show Money Box that it has specific guidelines for hire car companies which state that customers must be notified in advance about charges for any damage. However these guidelines are not published, and so the card company relies on whichever institution the car hire firm’s bank with to advise them.

The car hire companies such Avis and Budget claim they try and notify customers before billing them. Hertz and Europcar/National said they sent out their letters at the same time as debiting the hirer's account. Europcar/National said it believed that the customer's signature and agreement to the rental agreement was sufficient authorisation for any charges relating to their rental.

Visa advises their customers that should they have a dispute, should first contact their bank. If necessary, the bank can then refer the matter on to Visa. Mastercard says it can also help with these sorts of disputes.

However there are other precautions customers can take. One is to pay with a credit card, this is because it gives you more time to pay, and could give greater protection under the consumer credit act.

Amanda Diamond from the consumer magazine Which? Holiday says customers can also help themselves by taking precautions at the car hire centre:

"Try and drop the car off while there is someone at the office. If you can't do that, then take lots of photographs so that you have proof there's been no damage to the car."

Customers can also refer disputes with hire car companies across Europe to the new UK European Consumer Centre, run by Trading Standards. It also recommends customers gather as much evidence as they can such as photographing their vehicle in case of any disputes over damage.

   
 
     
 
 
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