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Loss of Use?

Discussion in 'Car rentals' started by Chrisg, Dec 6, 2017.

  1. Chrisg

    Joined:
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    I recently rented a car in Albuquerque, NM and was told by the agent that New Mexico is a "loss of use state" and that if I did not accept their insurance, and if I was in an accident, I was subject to paying full rental value of the car while it was being repaired. I have never heard this before and seems to be a tactic to bully people into accepting their insurance. I asked another rental car company about loss of use when I returned the car and that person gave some vague answer, indicating that he really didn't know what I was talking about. Searching the internet, I found that there was a case where a person was able to get "loss of use" for his car from the person who hit him, but nothing else, except discovering this forum... What is this loss of use thing and is it just another technique to bully people into taking the rental car company's insurance?
     
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  2. Just A Guy

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    The concept of loss of use is that, in the event you damage the car so that it has to be repaired, you have to make the rental car company whole for the revenue they lost out on while the car was in the shop. Rental companies will typically try to bill for it, most insurance companies (including credit card insurance) won't pay for it, and consumers can typically get it waived if they push back hard enough. If you're even in the situation where you're being charged for loss of use, tell the rental company they need to provide you with rental logs from that location, showing that, during the period that they car was in the shop, they were sold out of that type of car in that location. If the company wasn't sold out, they didn't miss out on any revenue, since they didn't have to turn down any customers.
     
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  3. Neil

    Neil Moderator
    Staff Member Advocate

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    When we rent in the US, our GEICO insurance covers car rentals and since we have collision I don’t worry about this and don’t buy supplemtal here.
    I agree with you- this is a strong arm tactic to push you to buy insurance. If it were me, I would use our company contacts we have on top of our page and contact the corporate office of the company you rented from and report this tactic. It’s even better if you have the name of the employee.
     
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    Just A Guy likes this.

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