Alamo 'Loss Of Use' fee

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Nov 5, 2018
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#1
I have two car rental insurance questions I would like to ask. One has to do with the consumers legal rights for an updated revised receipt of what is owed after a car insurance company has paid their part, and the other is about ‘Loss Of Use’ fees. I recently rented a car from Alamo and got into an accident, which I was at fault and hit another car. My car insurance paid off the person I hit and paid off most of the damage that was done to the car rental. My bill was for $1999.19 for damage to the car rental and my insurance company paid off $1014.04 of that. The car rental company sent me a letter saying I owed them the remaining balance of $985.15. I asked for the car rental company to send me a revised updated itemized bill in the amount of $985.15 so I could review what my car insurance paid out and so I could also review the remaining balance which I owe. Instead they sent me the original itemized bill for $1999.19 and said they could not send me a revised itemized bill in the amount of $985.15, for which they claim I owe. They can only send me the original bill. My question is don’t they legally have to give me an updated revised receipt in the amount for which I owe them ($985.15) instead of the original bill? It only seems right (fair) that if I owe them $985.15 that they should be able to produce a receipt/bill for that amount.

My second question has to do with ‘Loss Of Use’ fees. The car company claims I owe them $499.19 for loss of use of their car while it was being repaired. The car was in their shop for a total of 4 days. The car rental fee is $69.73 per day. The cost for ‘Loss Of Use’ fees should therefore be $278.98 (4 days X $69.73). However, I’m being asked to pay $499.19 based off the following formula:

Loss of Use = (total labor hours from the repair estimate divided by 4, multiplied by the daily rate on the rental agreement).

Using my case as an example that would be:
Loss of Use = (28.70/4.00) days @ $69.73 per day @ 100.00 % occupancy = $499.96.

However, the above formula calculates to $500.31 not $499.96. I asked them to explain the discrepancy and they would not. How can they not explain the discrepency? But that’s not my question. My question is, If the cost of the damage to the rental vehicle was $1370.94, and that amount includes labor costs and repairs; How is it that they can charge me for labor AGAIN in the Loss of Use formula? That seems like double charge for labor which doesn’t seem right.
 

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
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www.promalvacations.com
#2
Is the loss of use fee included in the $985 they billed you for? How much is the deductible for your insurance? You would owe at least whatever your deductible is in your policy.

You should go back to your insurance company and ask why they didn’t pay the full amount of the bill. If you have a $500 deductible and the loss of use is included in the $985- that could be the difference. If it’s not- your insurance company has to tell you what they didn’t pay for.

Yes, loss of use is often charged for the days the car is out of service while being repaired. Look at your contract with the car rental company- it’s usually stated. I wouldn’t quibble about a few cents difference because they can also claim diminished value of the car as well.

Here is the caveat to all this and what you can go back at them for- tell them to prove to you that the car would have been actually rented for the four days it was out of service. Ask them to show you that they had to rent out a higher class car for the rental cost of the type of car you had proving they ran out of the car class you had for those four days by providing their fleet rental logs. (They will tell you they don’t have to show you)

If they refuse- use our company contacts and start weird by one by one to the Executives and try and get that dropped.
 
Nov 5, 2018
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#3
Is the loss of use fee included in the $985 they billed you for? How much is the deductible for your insurance? You would owe at least whatever your deductible is in your policy.

You should go back to your insurance company and ask why they didn’t pay the full amount of the bill. If you have a $500 deductible and the loss of use is included in the $985- that could be the difference. If it’s not- your insurance company has to tell you what they didn’t pay for.

Yes, loss of use is often charged for the days the car is out of service while being repaired. Look at your contract with the car rental company- it’s usually stated. I wouldn’t quibble about a few cents difference because they can also claim diminished value of the car as well.

Here is the caveat to all this and what you can go back at them for- tell them to prove to you that the car would have been actually rented for the four days it was out of service. Ask them to show you that they had to rent out a higher class car for the rental cost of the type of car you had proving they ran out of the car class you had for those four days by providing their fleet rental logs. (They will tell you they don’t have to show you)

If they refuse- use our company contacts and start weird by one by one to the Executives and try and get that dropped.
Yes, the loss of use is part of the $985. My deductible is $300. I asked for the fleet logs and they provided me a screen shot that appears to show that of the 4 days the car was under repair only one day the car rental was at capacity. In other words, it appears that for 3 of the 4 days there were cars on the lot that could have been rented out and they didn’t suffer a loss.

My issue is how can I be charged (again) for labor charges in the 'Loss of Use' formula? I already paid for labor charges to have the car repaired under the damage cost. It’s like they are charging me twice for labor which seems unethical. Also, I know its nit picking about a few cents. But perception is everything to the consumer. If a simple formula that they use to calculate 'Loss of Use' doesn't add up correctly then one has to wonder about the rest of their calculations.
 
Mar 14, 2018
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#5
Yes, the loss of use is part of the $985. My deductible is $300. I asked for the fleet logs and they provided me a screen shot that appears to show that of the 4 days the car was under repair only one day the car rental was at capacity. In other words, it appears that for 3 of the 4 days there were cars on the lot that could have been rented out and they didn’t suffer a loss.

My issue is how can I be charged (again) for labor charges in the 'Loss of Use' formula? I already paid for labor charges to have the car repaired under the damage cost. It’s like they are charging me twice for labor which seems unethical. Also, I know its nit picking about a few cents. But perception is everything to the consumer. If a simple formula that they use to calculate 'Loss of Use' doesn't add up correctly then one has to wonder about the rest of their calculations.

They aren't charging for labor twice. They aren't documenting how long the car is actually out of service. Instead, they assume 4 hours of repair can be done per day, so a 28 hour repair will take 7 days.

You should absolutely push back on this. If the car was out of service for 4 days (which seems about right for 28 hours of work), all they should be charging for is 4 days.