Overcharged for repairs by a car rental

agent008t

It happened in Germany with a reputable car rental brand (if there is such a thing). Some other car scratched the side of mine while I was in a shop - a large scratch, but no dent. I called the police and the car rental, the police recorded the incident and opened an investigation.

Car rental charged me the full excess (1150 euro) and sent me an itemized repair estimate for 1750 euros of which I was charged 1150. Surprised at the high cost, I emailed car repair shops in the expensive German city where I rented the car, gave them detailed photos of the damage and asked for a quote. The quotes I got were between 350 and 750 euros, the latter of which was from the highest rated premium car body shop in the city, offering free car pick up and drop off, courtesy car etc. Car rental place declined to admit to overcharging and after a month of emailing back and forth agreed to reimburse me 350 euros without admission of guilt. 800 euros for the repairs still seems on the high end, especially given that they should be able to repair it for much cheaper than retail body shops in one of the most expensive German cities.

What are my options at this point? I could ask them for an itemized bill for repairs actually carried out, but realistically I don't think they would budge unless I threaten to go to the EU regulator, ECRCS. But I don't know what happens then. Do they tend to side with the customer or with the car rental in such situations? Has anyone here had any precedent? What kind of outcome could I expect? Problem is, it is my word against the car rental - they claim that car manufacturer's standards that they follow are higher than what the body shops follow and that is why their repair costs are higher.

Should I accept the 350 euros or keep fighting?

AdrianC

Don't forget that the rental agreement includes liability for the time the car is unavailable for hire due to the damage incurred while it was in your possession.

You had a quote of up to €750 for the damage alone.
You are being charged €800 including somebody from the rental firm's time to take it in, and including the time it's unavailable for hire.

Grumpy_chap

Highest quote 750 Euro.
Take the refund of 350 Euro and you will have paid 800 Euro.
Car companies typically add an admin charge - what did the contract say about that?
You might fight a lot and get a small it more back, maybe, but as far as the hire company are concerned they already took a hit from 1,750 Euro to 800 Euro...

agent008t

AdrianC said:

Don't forget that the rental agreement includes liability for the time the car is unavailable for hire due to the damage incurred while it was in your possession.

You had a quote of up to €750 for the damage alone.
You are being charged €800 including somebody from the rental firm's time to take it in, and including the time it's unavailable for hire.

The estimate of costs I was sent did not include any charge for the time the car is unavailable. Admin fees were €20 and were originally waived. The €750 was a high end estimate in an expensive city - surely the car rental's repair costs would actually be much lower? They can do the repairs in a cheaper location, use economies of scale and they shouldn't include a profit margin. 

NottinghamKnight

agent008t said:

AdrianC said:

Don't forget that the rental agreement includes liability for the time the car is unavailable for hire due to the damage incurred while it was in your possession.

You had a quote of up to €750 for the damage alone.
You are being charged €800 including somebody from the rental firm's time to take it in, and including the time it's unavailable for hire.

The estimate of costs I was sent did not include any charge for the time the car is unavailable. Admin fees were €20 and were originally waived. The €750 was a high end estimate in an expensive city - surely the car rental's repair costs would actually be much lower? They can do the repairs in a cheaper location, use economies of scale and they shouldn't include a profit margin. 

No, as pointed out previously they are due the loss of earnings for the time it takes to repair. You can of course take legal action but that would prove to be very expensive in all probability. If there is damage whilst you have the vehicle then it's unlikely your liability will be less than the excess you signed up to. The real question is why you didn't take out excess insurance prior to travelling which would have cost you well under fifty quid. lesson for next time maybe.

agent008t

NottinghamKnight said:
No, as pointed out previously they are due the loss of earnings for the time it takes to repair. You can of course take legal action but that would prove to be very expensive in all probability. If there is damage whilst you have the vehicle then it's unlikely your liability will be less than the excess you signed up to. The real question is why you didn't take out excess insurance prior to travelling which would have cost you well under fifty quid. lesson for next time maybe.

Car rental companies certainly would try to keep the full excess amount, but I am surprised that the consensus here seems to be that this practice is not fraudulent or that it is justified. Rental companies are known to routinely overcharge for repairs - look up "Car hire firms are ripping off customers, says Which?". The question is, how do we as consumers fight back against that?

I have always thought that you should not insure against expenses that you can afford to pay and that are not too painful. Insurance carries a cost. But somehow this seems like the one case where it may actually be cheaper to insure in the long run. How come? Do insurance companies have some sort of an agreement with rental companies so they do not have to pay them the full excess? I would think small damages to rental vehicles like what I got are fairly common and happen more often than 1 in 30 times.

comeandgo

You can buy excess insurance cover in UK before you travel.  We used to buy it when we were travelling Australia and it cost less than £30 a year.  

NottinghamKnight

agent008t said:

NottinghamKnight said:
No, as pointed out previously they are due the loss of earnings for the time it takes to repair. You can of course take legal action but that would prove to be very expensive in all probability. If there is damage whilst you have the vehicle then it's unlikely your liability will be less than the excess you signed up to. The real question is why you didn't take out excess insurance prior to travelling which would have cost you well under fifty quid. lesson for next time maybe.

Car rental companies certainly would try to keep the full excess amount, but I am surprised that the consensus here seems to be that this practice is not fraudulent or that it is justified. Rental companies are known to routinely overcharge for repairs - look up "Car hire firms are ripping off customers, says Which?". The question is, how do we as consumers fight back against that?

I have always thought that you should not insure against expenses that you can afford to pay and that are not too painful. Insurance carries a cost. But somehow this seems like the one case where it may actually be cheaper to insure in the long run. How come? Do insurance companies have some sort of an agreement with rental companies so they do not have to pay them the full excess? I would think small damages to rental vehicles like what I got are fairly common and happen more often than 1 in 30 times.

So challenge the rental company in accordance with their and any regulatory appeals and take it to court if you feel so principled, presumably in Germany with the risk of tens of thousands in legal fees, nothing stopping you.
You appear to have disproved the second paragraph of your post, the obvious answer is that actual rental claims are far rarer than you have assumed, Occams razor applies, so no point looking for strange and mysterious deals between rental companies and car hire insurers. 

Flight3287462

agent008t said:

 Do insurance companies have some sort of an agreement with rental companies so they do not have to pay them the full excess? 

What insurance company?  They will self insure for damage to their cars.

agent008t

Hunyani_Flight_825 said:

What insurance company?  They will self insure for damage to their cars.

If you buy excess insurance from the rental company you will pay through the nose. Buying from 3rd party insurers is much cheaper.

agent008t

NottinghamKnight said:

So challenge the rental company in accordance with their and any regulatory appeals and take it to court if you feel so principled, presumably in Germany with the risk of tens of thousands in legal fees, nothing stopping you.
You appear to have disproved the second paragraph of your post, the obvious answer is that actual rental claims are far rarer than you have assumed, Occams razor applies, so no point looking for strange and mysterious deals between rental companies and car hire insurers. 

Why take it to court? I outlined my options in the OP. The question is whether I go to the ECRCS or not. What is the likely outcome of that? Has anyone ever dealt with the ECRCS on a similar issue? Would the rental company potentially face any fines if they are found to have been overcharging for repairs, giving me some leverage over them?

If actual rental claims are far rarer that would imply that I should not take out insurance unless I am less careful than the average rental driver, right?

The European Car Rental Conciliation Service (ECRCS) was established over 5 years ago to help customers with unresolved complaints concerning cross border vehicle rentals within Europe.
 

If you have exhausted a participating companies complaints procedure and remain dis-satisfied with the outcome the ECRCS can review the evidence from your complaint against the Code of Practice and provide an impartial decision. The decision is binding on the participating company but does not in any way restrict a customer's right to seek legal redress.

The conciliation service can only help with disputes involving a ‘cross-border’ rental transaction occurring within the European Union or UK - you must be a resident of the EU or UK and the rental must have taken place in a different EU country. If your complaint concerns a non-cross-border rental you should raise the matter in your own country through any local dispute resolution process that may exist.

The service is free of charge to the complainant.

The ECRCS will aim to resolve the matter using the information presented by both parties to the dispute. This information may include documentation, photos, videos, audio, and transcripts of calls.