Insurance company nightmare

[010101]

I was borrowing a large SUV from a family member to move some stuff and I got rearended. I live about an hour away from the people who own the car. Under their insurance I am allowed to drive the car, but I am not one of the people on the policy. Since the car was in an accident by my house and I didn't want to drive it back to their house when it was messed up we decided to just get it fixed by my house.

Our adjuster offered me a free rental car since the other party's insurance was willing to pay for it. Although we did not totally need this rental car I decided to accept it since it would make picking up and dropping off the car at the body shop easier. The adjuster (knowing exactly who I was) told me I could just go drop the car off at the body shop and pick up the rental and set up a direct bill. I did this and everything went fine.

Now it's a few weeks later and I get a message from the car rental company saying that the direct bill claim was denied due to the fact I was not on the policy. They charged my credit card for several hundred dollars. Now I am trying to get a hold of the adjuster to get them to send a check over to the rental car company so they will put the money back onto my card.

I was never told by the rental company that I would be charged anything under any circumstance. They just said they have to hold the credit card number for me to take the car incase of an accident ect. The adjuster knowing who I was told me I could go pick up the car. The only reason we even took the car is because it was offered to us for free. The rental car costs them the same regardless of who picks it up anyway.

I want the money back on my card right now. I have been waiting for the damn adjuster to call me for three days. Can I just call my credit card company and tell them this was a fraudulent charge? I think it should be the rental car co’s job to deal with the insurance company since that's what they originally told me they would do. If there was any doubt at all about the car I would not have taken it, but they assured me it would be free.

[HyperM3]

Dispute the charge now so that no interest accrues. If in the end they deem you are indeed having to pay, they will put the charges back on without the added interest. So you have at least 2 months before you have to pay anything.

[Got f1?]

Originally Posted by 010101

I was borrowing a large SUV from a family member to move some stuff and I got rearended. I live about an hour away from the people who own the car. Under their insurance I am allowed to drive the car, but I am not one of the people on the policy. Since the car was in an accident by my house and I didn't want to drive it back to their house when it was messed up we decided to just get it fixed by my house.

Our adjuster offered me a free rental car since the other party's insurance was willing to pay for it. Although we did not totally need this rental car I decided to accept it since it would make picking up and dropping off the car at the body shop easier. The adjuster (knowing exactly who I was) told me I could just go drop the car off at the body shop and pick up the rental and set up a direct bill. I did this and everything went fine.

Now it's a few weeks later and I get a message from the car rental company saying that the direct bill claim was denied due to the fact I was not on the policy. They charged my credit card for several hundred dollars. Now I am trying to get a hold of the adjuster to get them to send a check over to the rental car company so they will put the money back onto my card.

I was never told by the rental company that I would be charged anything under any circumstance. They just said they have to hold the credit card number for me to take the car incase of an accident ect. The adjuster knowing who I was told me I could go pick up the car. The only reason we even took the car is because it was offered to us for free. The rental car costs them the same regardless of who picks it up anyway.

I want the money back on my card right now. I have been waiting for the damn adjuster to call me for three days. Can I just call my credit card company and tell them this was a fraudulent charge? I think it should be the rental car co’s job to deal with the insurance company since that's what they originally told me they would do. If there was any doubt at all about the car I would not have taken it, but they assured me it would be free.

Have your friends call in to their insurance co and complain. That vill virtually always work! Which insurance co is it? I work for one of the big ones.

[CALIF65GM]

Depending on ins and rental companies, some ins. companies will not allow direct billing on a claimant's rental car (only on their own insured). You have to pay and get reimbursement. It's a strange policy, but you're suppose to get a car in the same class as your damaged car, if you're the claimant.

[John 070]

I think I do understand the issue--when you have a policy, it covers anybody, licensed drivers of course, who is driving the said vehicle. When there is a claim, the insurance co. will pay the insured and/or lienholder.

If you loan your car to Paris Hilton and she damages it, sure, your insurance will pay to fix it. If a rental car is part of the coverage (I never get that, not worth it), they will provide a car to you, but not Paris Hilton. She's not the policy holder. You said the other party's insurance was willing to pay for it, so either they weren't, or your own wasn't. imho when both parties in an accident have full coverage, we don't really know what the agreement was, because sometimes it's easier for our own co. to raise the rate rather than take the other party to court for reimbursement. So I think the net is the same, the insurance of the car you were driving does not want to pay for the rental because you're not the policy holder. Come to think of it, why would they, it's the owner of the car that should receive the benefit having lost use of the car.

[010101]

Hey guys, thanks for the responses. I guess I posted this a little prematurely. I ended up speaking with the adjuster today who was actually pretty helpful. Assuming everything goes right they should issue the rental co. a check and I should have my money back by next week. I'll keep you posted.

John, if the insurance co tells Paris Hilton (knowing who she is and that she is not on the policy) that she can pick up the rental car then it's on them to take care of it. It was a misunderstanding between adjusters. They should pay for it because if I hadn't gone to get it the policy owner would have, so it wouldn't cost them any more money. They are the ones that offered the free car to us in the first place. It's not like I went and got one and now I want them to pay for it. Maybe the adjuster I talked to messed up by telling me I could get it, but either way I'm not responsible for their screw up.

F1, I don't really want to bad mouth the company on here yet since they seem to be willing to take care of it. I'm a little irritated this ever happened in the first place, but I want to give them a chance to make it right first.

[LEDZEP]

Here's the problem: While the car owner's insurance covers damages or an accident that occurs while another person is driving with their permission, it does not extend any loss of use benefit thusly. It was not your vehicle, so there is no way that you can expect compensation for the loss of its use.

The adjuster was misleading, and you have a right to be highly annoyed with that person, but unless that adjuster put in writing that you are entitled to a free rental... ain't gonna happen.

Analogy: My neighbor lets me come over and watch his large plasma TV whenever I want. Neighbors house burns down. Should his insurance company provide me with a suitable plasma TV to watch? Of course not, it was not my TV and I have had no loss.

I sympathize with you, but I think you're stuck.

[E91AWD]

Originally Posted by LEDZEP

Here's the problem: While the car owner's insurance covers damages or an accident that occurs while another person is driving with their permission, it does not extend any loss of use benefit thusly. It was not your vehicle, so there is no way that you can expect compensation for the loss of its use.

The adjuster was misleading, and you have a right to be highly annoyed with that person, but unless that adjuster put in writing that you are entitled to a free rental... ain't gonna happen.

Analogy: My neighbor lets me come over and watch his large plasma TV whenever I want. Neighbors house burns down. Should his insurance company provide me with a suitable plasma TV to watch? Of course not, it was not my TV and I have had no loss.

I sympathize with you, but I think you're stuck.

With all due respect, you are mistaken. If the insurance policy (a contract between the company and the insured) states that it will pay up to $xx.xx for Y days while the car is out of use, then it must pay that benefit regardless of who is driving. That is a benefit the policy holder paid for, and for which the insurance company must provide. The fact that the insured and a third party have a separate and independent agreement as to the shared use is irrelevant UNLESS the insurance policy specifically excludes that benefit. The policy must be clear that it only provides that benefit if the insured is driving the car at the time of the accident and the rental car at all times. Let me assure you no such provision has EVER been written into a policy.

On the other hand if the other party is at fault for the accident then they are responsible for all reasonably foreseeable damages resulting from their negligence. If a person damages another person's car that is then out of commission while it is being repaired, or while the other person seeks a replacement vehicle for it, then the at-fault party pays. (or the insurance company if they have one). The fact that the non-fault party has chosen to share the benefits of ownership (the use of the vehicle) with a friend or family member is again irrelevant. The person who owns the car is entitled to compensation for its loss of use. It doesn't matter who rents the car, so long as there is no dispute between the driver and the owner of the vehicle.


If the owner says the driver had his permission to use his car and continues to have that permission, then the driver can obtain the rental in his name. The owner agreed, through gift or contract, to share the benefits of ownership with the friend and those benefits, or right of use, belong to the driver as well as the owner for as long as they may agree. The at-fault party and their insurance company can not claim that they don't have to pay for the loss of use to the friend. That agreement between friends or family members does not in anyway relieve them from paying for this reasonably foreseeable damage.

[Neurorad]

Insurance nightmare? I don't think a few hundred dollars qualifies as a nightmare.

Letting your insurance lapse, and totalling your car, yeah, that would be worse. That's what I was expecting to read here. Good to hear it's being resolved.

[smellthebeans]

Originally Posted by 010101

I was borrowing a large SUV from a family member to move some stuff and I got rearended. I live about an hour away from the people who own the car. Under their insurance I am allowed to drive the car, but I am not one of the people on the policy. Since the car was in an accident by my house and I didn't want to drive it back to their house when it was messed up we decided to just get it fixed by my house.

Our adjuster offered me a free rental car since the other party's insurance was willing to pay for it. Although we did not totally need this rental car I decided to accept it since it would make picking up and dropping off the car at the body shop easier. The adjuster (knowing exactly who I was) told me I could just go drop the car off at the body shop and pick up the rental and set up a direct bill. I did this and everything went fine.

Now it's a few weeks later and I get a message from the car rental company saying that the direct bill claim was denied due to the fact I was not on the policy. They charged my credit card for several hundred dollars. Now I am trying to get a hold of the adjuster to get them to send a check over to the rental car company so they will put the money back onto my card.

I was never told by the rental company that I would be charged anything under any circumstance. They just said they have to hold the credit card number for me to take the car incase of an accident ect. The adjuster knowing who I was told me I could go pick up the car. The only reason we even took the car is because it was offered to us for free. The rental car costs them the same regardless of who picks it up anyway.

I want the money back on my card right now. I have been waiting for the damn adjuster to call me for three days. Can I just call my credit card company and tell them this was a fraudulent charge? I think it should be the rental car co’s job to deal with the insurance company since that's what they originally told me they would do. If there was any doubt at all about the car I would not have taken it, but they assured me it would be free.

The rental is not free. Get that out of your mind.
You signed the contract for it. Just because the at fault insurance company does not direct bill does not mean they will not reimburse you. They (his insurance) will...the at fault insured's policy should cover both the cost of repairs & the rental. Obviously they direct billed the auto body shop.

Call the at fault insurance agency with the claim/file number and provide them a copy of the rental agreement & and a copy of the receipt showing you paid. So long as your rental is with in his policy guide lines (ie. you did not rent a Hummer, or BMW . At fault insureds policy should cover compact or mid sized sedan. You wont get your money back right now but, you will in 7-8 days in the form of a check.

The rental agency may have told a white lie or 1/2 truth when they told you they direct bill. This happens all the time....the WANT YOUR BUSINESS...talk to the manager there and tell him what happended.

Good luck!