$800 "recovery" fee from Nextcar

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#1
In July, 2017 I had a rental car from Nextcar in Baltimore. During my trip, I scraped against a post, causing a small scrape on the drivers' rear panel. I paid my $500 deductible to Nextcar, then another $127, then my insurance took care of the rest and closed the claim. Now I am receiving monthly letters from a 3rd party Bluebird Auto Recovery demanding $800 for their "recovery" costs. This seems ridiculous, and a scrape should not cost over $1300. (I know body work is expensive, but please. They're going to sell the car with new model years anyway.)

What can I do to make this 3rd party back off?

Thank you!
 

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Feb 9, 2016
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#3
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Comment on Insurance:

Just because carriers do not cover loss of future value does not mean that at the time they pay damages on your behalf they should not protect your legal rights. A carrier that does NOT obtain a full and complete property damage release [at a minimum] at the time they pay a third party claim is opening the door to later claims from others or different claims just like this one someone makes later.

If the carrier did not obtain a release, then they are on the hook to defend you from this claim even though it may not be covered. You will likely get refusal to defend from the carrier on the grounds the the loss claimed is not a covered losss. The response to that is:

"I received your refusal to defend this claim. I filed claim # in good faith, relying on my insurance carrier to protect my interests.

Inexplicably, knowing about this claim, you paid money on this claim yet did not insist nor obtain a complete release of property damage claims at a minimum, at the time you paid the claim. This leaves me exposed to additional damages and having to fund this defense.

Obtaining a release prior to paying a claim is Insurance Adjusting 101. Your failure to do so violates our insurance contract, the covenant of good faith and fair dealing and is an astonishing bad faith claims settlement practice. I insist that my carrier protect my rights. The original claim was covered. The extra damages being sought here are part of the original claim which you failed to obtain a release for. A defense is demanded. Reserve whatever rights to payment you may need but I am entitled to a defense given your failure to obtain a release."
 

Dwayne Coward

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Apr 13, 2016
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#4
In July, 2017 I had a rental car from Nextcar in Baltimore. During my trip, I scraped against a post, causing a small scrape on the drivers' rear panel. I paid my $500 deductible to Nextcar, then another $127, then my insurance took care of the rest and closed the claim. Now I am receiving monthly letters from a 3rd party Bluebird Auto Recovery demanding $800 for their "recovery" costs. This seems ridiculous, and a scrape should not cost over $1300. (I know body work is expensive, but please. They're going to sell the car with new model years anyway.)

What can I do to make this 3rd party back off?

Thank you!
Has the letters they sent you stated what the $800 charge is for? The insurance normally will not pay for any of the additional fees that may be stipulated in the rental contract, such as Loss of Use. You will need to know what they are charging you for, to effectively address it with the company. If the letters are not specific to the charges, I recommend writing them and asking for a complete breakdown.
 
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#5
Has the letters they sent you stated what the $800 charge is for? The insurance normally will not pay for any of the additional fees that may be stipulated in the rental contract, such as Loss of Use. You will need to know what they are charging you for, to effectively address it with the company. If the letters are not specific to the charges, I recommend writing them and asking for a complete breakdown.
No, they just said $800, and quoted some bit from the contract. I'm happy to scan a copy and post it here. Thanks for your input.
 
#6
Has the letters they sent you stated what the $800 charge is for? The insurance normally will not pay for any of the additional fees that may be stipulated in the rental contract, such as Loss of Use. You will need to know what they are charging you for, to effectively address it with the company. If the letters are not specific to the charges, I recommend writing them and asking for a complete breakdown.
Thank you for all your help - I am following up w/ my insurance company and will follow up here once I know what's what.
 
Jun 30, 2017
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#7
In July, 2017 I had a rental car from Nextcar in Baltimore. During my trip, I scraped against a post, causing a small scrape on the drivers' rear panel. I paid my $500 deductible to Nextcar, then another $127, then my insurance took care of the rest and closed the claim. Now I am receiving monthly letters from a 3rd party Bluebird Auto Recovery demanding $800 for their "recovery" costs. This seems ridiculous, and a scrape should not cost over $1300. (I know body work is expensive, but please. They're going to sell the car with new model years anyway.)

What can I do to make this 3rd party back off?

Thank you!
This is a two panel damage. $1300 is a good price for a repair.
 
#9
contact your insurance and ask for a copy of the 'property damage release' the insurance company got when they paid the final amount and closed this claim.
UPDATE: My insurance informed me that they *did* pay the $800+ recovery fee, and the co. accepted and cashed the check, which means (according to my claims adjuster) that we are released from further claims. He is now handling this. I'll post if I hear anything additional.

Thank you for your help & responses here - I had no idea what to do. I appreciate your help & expertise!
 
#11
Has the letters they sent you stated what the $800 charge is for? The insurance normally will not pay for any of the additional fees that may be stipulated in the rental contract, such as Loss of Use. You will need to know what they are charging you for, to effectively address it with the company. If the letters are not specific to the charges, I recommend writing them and asking for a complete breakdown.
The letter states "loss of use" and that I'm responsible for a "reasonable charge" which they set at $150, but then they want $800. Still figuring this out with my insurance company - AmFam - which did not obtain a signed release. I'm going to recommend that anyone reading this NOT use AmFam in the future!
 
Feb 9, 2016
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#13
The letter states "loss of use" and that I'm responsible for a "reasonable charge" which they set at $150, but then they want $800. Still figuring this out with my insurance company - AmFam - which did not obtain a signed release. I'm going to recommend that anyone reading this NOT use AmFam in the future!
you need to direct the car rental company to the insurance company and the insurance company to the car rental company. The insurance company is your representative. If they didn't obtain a release that is an error that they are going to have to deal with.
 
#14
In July, 2017 I had a rental car from Nextcar in Baltimore. During my trip, I scraped against a post, causing a small scrape on the drivers' rear panel. I paid my $500 deductible to Nextcar, then another $127, then my insurance took care of the rest and closed the claim. Now I am receiving monthly letters from a 3rd party Bluebird Auto Recovery demanding $800 for their "recovery" costs. This seems ridiculous, and a scrape should not cost over $1300. (I know body work is expensive, but please. They're going to sell the car with new model years anyway.)

What can I do to make this 3rd party back off?

Thank you!
 
#15
UPDATE:

I sent American Family an email (as suggested above) asking why they did not obtain a release from Bluebird. They negotiated with Bluebird, arguing I had paid my $500 deductible, and Bluebird reduced the fee to $307. My insurance company wrote me a check for $307 so I could pay Bluebird - I would have preferred they paid them directly. I wrote them the check with a full release indicated on the back.

THANK YOU Elliott.org & everyone who helped in this forum.
Lessons learned: NEVER rent from Nextcar, and I will likely be changing my insurance carrier - and asking around for a representative who actually obtains releases in accidents.
 

jsn55

Verified Member
Dec 26, 2014
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#16
UPDATE:

I sent American Family an email (as suggested above) asking why they did not obtain a release from Bluebird. They negotiated with Bluebird, arguing I had paid my $500 deductible, and Bluebird reduced the fee to $307. My insurance company wrote me a check for $307 so I could pay Bluebird - I would have preferred they paid them directly. I wrote them the check with a full release indicated on the back.

THANK YOU Elliott.org & everyone who helped in this forum.
Lessons learned: NEVER rent from Nextcar, and I will likely be changing my insurance carrier - and asking around for a representative who actually obtains releases in accidents.
Glad this seems settled ... not sure if you know that several major credit cards offer built-in rental car insurance coverage. Chase Sapphire Visa gives you primary coverage so settling a claim is a breeze. I had a very positive experience after shattering the cargo door window of an SUV a couple of years ago.