Rental Car Damage

PoGee

A relative had a car collision on the motorway during a rainstorm. It went into the barriers, with airbags coming out. No visible damage to the car but wouldn't start. The insurance company refused to send out RAC saying it needed a tow to a salvage yard. They declared it a write off - over the phone. The salvage team said to contact the insurance company if wanting to buy it back but Insurance company said to deal with salvage company. So the relative ended up up just getting a 28 day rental car.

They found the rental car damaged. When 'signing up' (neither relative nor rental co physically signed paperwork...left blank) - it came with a £500 excess.

The relative noted that someone had damaged the car overnight. The damage was a scratch on bumper and plastic cover over rear light cracked. No other damage.

Is this a claim under the relative's insurance or is it just a matter of paying the £500 excess?

FlaatusGoat

I'm sorry to hear about your relative's situation. It sounds quite stressful. Here's a breakdown of what might be happening:

1. **Initial Collision and Write-Off**:
   - The insurance company declared the car a write-off over the phone, which is not uncommon if the damage is extensive or the car is deemed unsafe to drive¹.
   - If your relative wants to buy back the car, they should follow up with the salvage company as advised. This process can sometimes be a bit convoluted, but persistence is key.

2. **Rental Car Damage**:
   - Since the rental car came with a £500 excess, your relative is likely responsible for paying this amount if the damage occurred while the car was in their possession².
   - The damage noted (scratch on the bumper and cracked rear light cover) should be reported to the rental company immediately. They will assess whether the damage falls under the excess or if it can be repaired for less.

3. **Insurance Claim**:
   - If the damage to the rental car was caused by someone else (e.g., a hit-and-run), your relative might be able to claim under their own insurance policy, depending on the coverage².
   - However, if the rental agreement specifies that the renter is responsible for any damage, then paying the £500 excess might be the simplest resolution.

It might be helpful for your relative to review their insurance policy and the rental agreement carefully. They could also contact their insurance provider for clarification on coverage and next steps.

If you have any more details or need further assistance, feel free to ask!

PoGee

Thank you FlaatusGoat. I had initially thought it was just a matter of paying the £500 excess also but when he called the rental company local branch, they said 'call the number on the key'. The info on the key said - call this no for breakdown only, otherwise call the number on your documents. The number on the document was the first no he called.

He did as he was advised and called the key no. That company was not the rental company. They didn't have a note of the relative's details and attempted to set up a claim over the phone. It was someone called SGM.

The relative declined to give personal details and called the rental company local branch, by which time they had closed.

Should the rental company not be dealing with this? Like you said, they should assess the car first. If they think it will be more than £500, would it be classed as a claim against the relative? 

The complication is that his own insurer  has set the rental car up so we don't know if it's a claim against his name, regardless of whether it's over or under £500. 

FlaatusGoat

PoGee said:

Thank you FlaatusGoat. I had initially thought it was just a matter of paying the £500 excess also but when he called the rental company local branch, they said 'call the number on the key'. The info on the key said - call this no for breakdown only, otherwise call the number on your documents. The number on the document was the first no he called.

He did as he was advised and called the key no. That company was not the rental company. They didn't have a note of the relative's details and attempted to set up a claim over the phone. It was someone called SGM.

The relative declined to give personal details and called the rental company local branch, by which time they had closed.

Should the rental company not be dealing with this? Like you said, they should assess the car first. If they think it will be more than £500, would it be classed as a claim against the relative? 

The complication is that his own insurer  has set the rental car up so we don't know if it's a claim against his name, regardless of whether it's over or under £500. 

It sounds like a very confusing situation for your relative. Here are some steps and considerations that might help clarify things:

1. **Rental Company Responsibility**: Yes, the rental company should be the primary point of contact for any damage assessment and claims. They should inspect the car and determine the extent of the damage. If the damage exceeds the £500 excess, they will typically charge your relative the excess amount and handle the rest through their insurance.

2. **Insurance Claim**: Since the rental car was arranged by your relative's own insurer, it's important to clarify with them how this affects any claims. Generally, if the damage is under the excess amount, it might not be considered a claim against your relative's insurance. However, if the damage exceeds the excess, it could potentially be recorded as a claim.

3. **Contacting the Correct Parties**: It seems there was some miscommunication with the numbers provided. Your relative should:
   - Contact the rental company's main customer service line to report the damage and get instructions on the next steps.
   - Ensure they document all communications and keep records of any advice given.

4. **Dealing with SGM**: If SGM is not the rental company, your relative should avoid giving personal details and instead focus on dealing directly with the rental company. It’s crucial to ensure that all interactions are with the correct parties to avoid any potential issues.

5. **Next Steps**:
   - **Document Everything**: Take detailed photos of the damage and keep a record of all communications.
   - **Follow Up**: Contact the rental company during business hours to ensure the damage is properly assessed and documented.
   - **Clarify with Insurer**: Speak with the insurance company to understand how this situation impacts the policy and any potential claims.

By following these steps, your relative should be able to navigate this situation more effectively. If the rental company assesses the damage and it’s more than £500, they will likely handle the claim through their insurance, and your relative would just pay the excess. If it’s less, it might not impact their insurance record

PoGee

Thank you again FlaatusGoat - this has been very helpful - relative says thanks also.