Rental Car Accident


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Hi - Yesterday(18thApril) I did Accident by driving Rental car with out holding Auto Insurance. I got rental car by showing Visa Credit Card collision benefits. I hit other car, not sure about damages caused and two peoples faced minor injuries. Today i got Auto insurance from GEICO effective date as 20thApril as i am purchasing used car from Private seller here in WA.

Could you please advise to get prepared before facing challenges from both the parties?

 

Regards.

Raj

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Hi - Yesterday(18thApril) I did Accident by driving Rental car with out holding Auto Insurance. I got rental car by showing Visa Credit Card collision benefits. I hit other car, not sure about damages caused and two peoples faced minor injuries. Today i got Auto insurance from GEICO effective date as 20thApril as i am purchasing used car from Private seller here in WA.

Could you please advise to get prepared before facing challenges from both the parties?

 

Regards.

Raj

This is an immigration forum not auto insurance forum.

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I hope you read the rental car agreement to determine your financial liability for damages exceeding their limits.  You have a problem since you caused injury to others.  Your new insurance does nothing for your old accident ans you should have advised GEIGO of the accident when asked on the application or it can be cancelled and benefits denied if it is found that you lied on the application.

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First,  the damage to the other car and injury are most likely covered by a mandatory liability insurance which rental car companies carry.  Read the contract. 

 

As for damage to the rental car ,  it is covered by your Credit Card collision coverage.  However,  there are some issues here.  Rental car companies will claim depreciation of car  (due to accident),  loss of use , administrative charges etc.  which will be a ball of contention between rental car company and credit car insurance provider.    For loss of use,   CC will pay if rental car company provides fleet use log but rental car companies  refuse to provide that and claim just whatever they feel like.   Depreciation will not be paid because it is not a legal liability (no insurance pays depriciation in percieved value) .    You have a long fight ahead.  Google and learn how to deal with this.

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I would expect OP to have difficulty with new policy since he was apparently responsible party in an injury accident. Minimum liability coverage is never enough. A responsible driver in one of the professions now carries at least $500K and better a $1,000K umbrella policy.

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Your new insurance will not cover any expenses since you made an accident before it's effective date.

You said you have CC collision benefits, did you called that company??

Yes i called CC benefits team and got claim document to proceed. I have forward the same to enterprise Collision Damage team as well.

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No liability - injury accident - you should expect to be sued and need to engage an attorney 

 

Whatever you hoped to make and save in the US will be going to the people you injured in the accident for their medical bills and pain and suffering.

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OP do not get scared with what t75 is posting.  She is known to be a scare monger in this forum.     In most states,  a rental car company by law has to include state mandated liability insurance with every car. It is not optional but built-in in your rental.    Read your contract carefully.      Depending on state,  it might not be  a big  amount but for a minor injury it should be enough.    

Second,  I am assuming you are new to this country and do not have much asset.   No attorney will waste their time to run after you for a minor injury claim if you have no asset.   In some states (for example MA) ,  one cannot even sue the other party for a minor injury ( look for No Fault states)

 

  Mostly ,  what the insurance provides should be enough.   Had this been a major injury ,  story would have been different.

 

Your GEICO insurance will definitely not cover anything.  It is foolish even to think about it .  The insurance coverage starts from the effective date and cannot be back dated. 

 

You have a major battle ahead but read the rental contract ,  read the Credit Card coverage clause and you should be able to work it out.     If you have further questions, just post here

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Minimum insurance coverage is NEVER enough. 10/20/10 is all that is mandated in my state; this is no different from when you could purchase a new car for less than $2000 (yes I did that many, many years ago).  The people injured and the person owning the car you hit do not have to settle for what the insurance will pay.

 

OP should be afraid. He especially should be afraid if he did not report the accident on the application when he applied for his new policy.

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Minimum insurance coverage is NEVER enough. 10/20/10 is all that is mandated in my state; this is no different from when you could purchase a new car for less than $2000 (yes I did that many, many years ago).  The people injured and the person owning the car you hit do not have to settle for what the insurance will pay.

 

OP should be afraid. He especially should be afraid if he did not report the accident on the application when he applied for his new policy.

 

First ,  hope you know about No Fault rules.   Else google and get educated.  

 

Second,  a MINOR injury does not yield a huge claim .  Else I would have been a millionaire by now. Had two accidents where other  party was at fault    and my injury was just some bruise and whiplash .... all medical (<  $2K  per incident) was paid by my insurance's no fault part.  Yes you do not have to settle for what insurance pays but if you go for a million dollar claim for a bruise judge will throw the case out pronto. 

 

Third, OP DID NOT say he did not report the accident when  applying for a new policy .  That is your Imagination (nothing new) .     One minor accident does not bar someone from purchasing an insurance policy ... the premium might be higher.   Again get educated.   I wonder if your claims of  being a US born USC is real :)

 

Fourth ,   OP did not say he had the accident in your state . 

 

Fifth,  a $1000K umbrella policy ?   What are you smoking ?  I  will be surprised if OP has even one tenth of that in assets .   

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Minimum insurance coverage is NEVER enough. 10/20/10 is all that is mandated in my state; this is no different from when you could purchase a new car for less than $2000 (yes I did that many, many years ago).  The people injured and the person owning the car you hit do not have to settle for what the insurance will pay.

 

OP should be afraid. He especially should be afraid if he did not report the accident on the application when he applied for his new policy.

 

 

Hi - I am not supposed to use GEICO insurance.. I am trying to get claim from Visa Credit card benefit which dont have LIABILITY option for OP. I am terribly hurted because of this incident happend. Please let me know your kind guidance to overcome this issue smoothly.

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First ,  hope you know about No Fault rules.   Else google and get educated.  

 

Second,  a MINOR injury does not yield a huge claim .  Else I would have been a millionaire by now. Had two accidents where other  party was at fault    and my injury was just some bruise and whiplash .... all medical (<  $2K  per incident) was paid by my insurance's no fault part.  Yes you do not have to settle for what insurance pays but if you go for a million dollar claim for a bruise judge will throw the case out pronto. 

 

Third, OP DID NOT say he did not report the accident when  applying for a new policy .  That is your Imagination (nothing new) .     One minor accident does not bar someone from purchasing an insurance policy ... the premium might be higher.   Again get educated.   I wonder if your claims of  being a US born USC is real :)

 

Fourth ,   OP did not say he had the accident in your state . 

 

Fifth,  a $1000K umbrella policy ?   What are you smoking ?  I  will be surprised if OP has even one tenth of that in assets .   

Nice explaination Chakrakar. Looking at OP's comments, he/she may not have understood anything out of your argument with t75. I can understand every piece of it but Its certainly overwhelmign for the new person in the US to understand all of this. I don't know if you can, but it will be very helpful for OP, if you can just post your response in very simple straightforward way.

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Nice explaination Chakrakar. Looking at OP's comments, he/she may not have understood anything out of your argument with t75. I can understand every piece of it but Its certainly overwhelmign for the new person in the US to understand all of this. I don't know if you can, but it will be very helpful for OP, if you can just post your response in very simple straightforward way.

 

I have ....  read the thread.    I am reproducing again .    Bottomline,  no body can help OP if he do not read the Rental Contract  AND the Credit Card insurance terms in detail .... and I mean  every line.

 

Here is what I said earlier --  "

First,  the damage to the other car and injury are most likely covered by a mandatory liability insurance which rental car companies carry.  Read the contract. 

 

As for damage to the rental car ,  it is covered by your Credit Card collision coverage.  However,  there are some issues here.  Rental car companies will claim depreciation of car  (due to accident),  loss of use , administrative charges etc.  which will be a ball of contention between rental car company and credit car insurance provider.    For loss of use,   CC will pay if rental car company provides fleet use log but rental car companies  refuse to provide that and claim just whatever they feel like.   Depreciation will not be paid because it is not a legal liability (no insurance pays depriciation in percieved value) .    You have a long fight ahead.  Google and learn how to deal with this."

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I have ....  read the thread.    I am reproducing again .    Bottomline,  no body can help OP if he do not read the Rental Contract  AND the Credit Card insurance terms in detail .... and I mean  every line.

 

Here is what I said earlier --  "

First,  the damage to the other car and injury are most likely covered by a mandatory liability insurance which rental car companies carry.  Read the contract. 

 

As for damage to the rental car ,  it is covered by your Credit Card collision coverage.  However,  there are some issues here.  Rental car companies will claim depreciation of car  (due to accident),  loss of use , administrative charges etc.  which will be a ball of contention between rental car company and credit car insurance provider.    For loss of use,   CC will pay if rental car company provides fleet use log but rental car companies  refuse to provide that and claim just whatever they feel like.   Depreciation will not be paid because it is not a legal liability (no insurance pays depriciation in percieved value) .    You have a long fight ahead.  Google and learn how to deal with this."

 

Here is the bill summary released from Rental agency :

 

Damages : $ 8669

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I have ....  read the thread.    I am reproducing again .    Bottomline,  no body can help OP if he do not read the Rental Contract  AND the Credit Card insurance terms in detail .... and I mean  every line.

 

Here is what I said earlier --  "

First,  the damage to the other car and injury are most likely covered by a mandatory liability insurance which rental car companies carry.  Read the contract. 

 

As for damage to the rental car ,  it is covered by your Credit Card collision coverage.  However,  there are some issues here.  Rental car companies will claim depreciation of car  (due to accident),  loss of use , administrative charges etc.  which will be a ball of contention between rental car company and credit car insurance provider.    For loss of use,   CC will pay if rental car company provides fleet use log but rental car companies  refuse to provide that and claim just whatever they feel like.   Depreciation will not be paid because it is not a legal liability (no insurance pays depriciation in percieved value) .    You have a long fight ahead.  Google and learn how to deal with this."

Here is the bill summary received from Rental Agency Today :
 
Damages $ 8669
 
Tax $ 965
 
Administrative Fees $ 150
 
Loss of Use $ 470
 
Diminishment of Value $ 867
 
Collision Deduction $ 1000
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Here is the bill summary received from Rental Agency Today :
 
Damages $ 8669
 
Tax $ 965
 
Administrative Fees $ 150
 
Loss of Use $ 470
 
Diminishment of Value $ 867
 
Collision Deduction $ 1000

 

 

Damage and Tax will be paid by Credit Card.   Not sure what is the Collision Deduction .... ask for clarification.  If they are claiming damage why deduction again ?  Administrative Fee -- most likely Credit Card will  pay .  Did you read the Credit Card Insurance clauses in detail ?  Loss of Use -- Credit Card will ask for Fleet use log but rental company will not provide (typically).   However,  you can fight this (and Administrative Cost)  with the Credit Card company .  Google for "Koenig v. PurCo"   and cite it to Credit Card company.      Diminishment of Value is a bigger hassle.   CC will not pay it .  Ask Rental company to provide proof for Diminishment of Value.   Also ,  if you rented in IL, CA, NY or PA,   as I understand ,  per law they can only claim either Damage or Diminishment but not both.    

 

This is what you need to continue your battle ---

 

1) Ton of google

 

2) Read a) The contract of Rental Car ;  b) The Credit Card insurance clause

 

3) May be some time in local library to research Lexis-Nexis or Westlaw  (both legal sites)

 

If you are not too conversant with these, ask a friend to help ...

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Here is the bill summary received from Rental Agency Today :
 
Damages $ 8669
 
Tax $ 965
 
Administrative Fees $ 150
 
Loss of Use $ 470
 
Diminishment of Value $ 867
 
Collision Deduction $ 1000

 

 

Google for "rental car damage diminished value case law" .   You can find the diminished value laws for every state.   I think I get the Collision Deduction .  It is probably the deductible on the liability insurance which the rental company carries.   Still,  ask for clarification ,  if it is what I think you will need to pay this component :(

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Damage and Tax will be paid by Credit Card.   Not sure what is the Collision Deduction .... ask for clarification.  If they are claiming damage why deduction again ?  Administrative Fee -- most likely Credit Card will  pay .  Did you read the Credit Card Insurance clauses in detail ?  Loss of Use -- Credit Card will ask for Fleet use log but rental company will not provide (typically).   However,  you can fight this (and Administrative Cost)  with the Credit Card company .  Google for "Koenig v. PurCo"   and cite it to Credit Card company.      Diminishment of Value is a bigger hassle.   CC will not pay it .  Ask Rental company to provide proof for Diminishment of Value.   Also ,  if you rented in IL, CA, NY or PA,   as I understand ,  per law they can only claim either Damage or Diminishment but not both.    

 

This is what you need to continue your battle ---

 

1) Ton of google

 

2) Read a) The contract of Rental Car ;  b) The Credit Card insurance clause

 

3) May be some time in local library to research Lexis-Nexis or Westlaw  (both legal sites)

 

If you are not too conversant with these, ask a friend to help ...

 

How about coverage of Damage or Diminishment  in WA State? Also i have paid Collision Deduction (The deductible (Collison and comprehensive) is simply the amount of payment that have to make in the event of an accident or loss.) fee $1000 to the rental agency. Can i get claim back from VISA CC team?

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How about coverage of Damage or Diminishment  in WA State? Also i have paid Collision Deduction (The deductible (Collison and comprehensive) is simply the amount of payment that have to make in the event of an accident or loss.) fee $1000 to the rental agency. Can i get claim back from VISA CC team?

Collision deductible should be  part of damage.  Get this in writing from Rental car.  It should be reimbursed by Credit Card company.  Send it to them.

For WA ,  diminishment is a bit tricky .   Here is what I find --

"

Although not an automobile case, the Washington Supreme Court in Certification From United States Dist. Court for Western Dist. of Wash. v. Aetna Casualty & Surety Co., 784 P.2d 507 (Wash. 1990), in the dissent on subjects not involving diminution, added dicta the general rule that: "Damages for injury to property are measured in terms of the amount necessary to compensate for the injury to the property interest. D. Dobbs 5.1, at 311. Therefore, damages for injury to property are limited under Washington law to the lesser of diminution in value of the property or the cost to restore or replace the property."

 

As you see it is not applied to a automobile case .  However,  you can argue based on  the fact Automobile is also a property.  So either you need to pay for damage or diminish value but not both.  Had I been you,  I would have gone to Small Claims court against Rental Car company to prove that they cannot collect Diminish value if they collect Damage.  However,  as I said earlier,   you will need to do a lot of google , spend some serious time researching law using lexis-nexis or westlaw (check your local library) and do this.     Alternately, you can hire a lawyer to fight this but that will probably be more expensive than what you need to pay the rental company

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@Chakrakr...I misunderstood you...you are very helpful....noone goes in such detail to help anyone..especially on a forum.

 

Thanks for the complement.   I understand people come to forums like this when they are in trouble .   I hate when I see members asking them "why you did this"  or scaring them.  What they have done cannot be undone by questioning or scaring.  I then try to figure if there is a solution at least for a partial remedy.          

Unlike some members,  I am not here to add salt to injury,  find fault or  bully "my words are law". 

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