Allstate settlement for damaged rental question

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Feb 1, 2019
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#1
On August 24, 2018, my wife hit an elk in an Advantage rental car. She did not purchase the rental insurance from Advantage. We are not disputing that damage occurred.

On December 10, 2018, PurCo sent a bill to us for

$11,502.22 Physical Damage
$542.08 Loss of Use (19.25 days at $28.16)*
$250.00 Administrative Fee
$6,609.10 Diminution of Value
$45.00 DV Appraisal Fee
$18,948.40 Total Claim Amount
*Loss of use calculation is based upon the damage repair valuation. Actual loss of use days may vary.

Allstate told me that on December 21, 2018 they sent a counteroffer to PurCo. Allstate claims Purco did not reply. On January 3, 2019, Allstate sent PurCo a check for $2,481, and on January 15, 2019, Allstate sent a check for $10,152.87. That totals $12,633.87, which is the number Allstate offered in the counter. Allstate now lists the claim as closed as both checks are cashed despite no correspondence from PurCo.

I asked Allstate if there is a release of liability letter from PurCo. Allstate said no, there is not so I am wondering about the $6,314.53 difference.

I'd like email the PurCo rep (my first correspondence to him) saying I believe the claim is closed. Here is what I have drafted up:

Hello Mr. XYZ,

My name is n64ra, and I am contacting you in regards to claim #ABC.

I spoke to my insurance company Allstate, who sent over payment for this claim. Allstate verified the payment was accepted. Therefore, Allstate and I both believe this issue to be completely resolved and closed. We trust PurCo accepts this claim as closed.

If you have any questions, please contact Allstate directly.

Sincerely,

n64ra

Does that sound good? Or should tell him to reply to me? Or should I demand Allstate get PurCo to say the claim is closed? Or do nothing - just wait for Purco to maybe send something to me or Allstate?

Thanks
 

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
17,628
15,918
113
New York
www.promalvacations.com
#2
You personally may be liable for the balance. These companies often want to be paid for loss of use and diminutive value but they have to prove both to you. When dealing with your own personal auto insurance they generally will not pay loss of use or value.

Instead of dealing with Purco I suggest you use our company contacts for the rental company and appeal to them to drop those extra charges.
 
Feb 1, 2019
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#3
I was expecting Allstate to only pay the Physical Damage ($11,502.22), but they paid more than that ($12,633.87). At this point, I can't tell if that was to cover some of the Diminution of Value or all of the Loss of Use or what. I did notice $12,633.87 is just over 2/3 of the original ask ($18,948.40).

I can reword my email to Naomi Cantera, Corporate Customer Service Manager from your list.

Hello Ms. Cantera,

My name is n64ra, and I am contacting you in regards to claim #ABC from PurCo.

On December 10, 2018, PurCo sent a bill to me for $18,948.40 for a damaged Advantage rental car. My insurance company Allstate sent a counteroffer to PurCo on December 21, 2018 for $12,633.87, representing a fair and equitable amount for the damages. Between January 3, 2019 and January 15, 2019, Allstate sent checks totaling $12,633.87 to PurCo, and Allstate verified the payments were accepted. PurCo has never responded to Allstate during this time. Therefore, I believe this issue to be completely resolved and closed trust Advantage accepts this claim as closed. Please remove any remaining charges.

Thank you.

Sincerely,

n64ra
 
Feb 1, 2019
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#6
I emailed Allstate today to ask how they determined $12,633.87 as a settlement offer to PurCo. I will hold off on contacting Advantage, and I will not be contacting PurCo.
 
Feb 1, 2019
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#7
I received a voicemail from Allstate that said the "repair estimate ... was $11,502.22" and "They also requested for diminished value, and that's when we pay the $2,481." So I think Allstate should have paid $13,983.22 instead of $12,633.87. Sent a follow up to Allstate.
 
Feb 1, 2019
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#8
Can't find a way to edit what I just posted. Also meant to add I expect Allstate to explicitly say $2,481 is what they calculate diminished value to be.
 

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
17,628
15,918
113
New York
www.promalvacations.com
#9
The insurance companies don’t usually pay diminished value or any fees for the car being out of service either. That’s what they come after you for and what you have to negotiate yourself.

We have many posts on the car rental forum about this. You might want to read them and get ready for what the other people have done.
 
Feb 1, 2019
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#10
Allstate quickly called me, and I was able to answer. $10,152.87 is what Allstate calculated the repairs to be. $2,481 is what Allstate calculated the diminished value to be. Allstate used NADA (National Automobile Dealers Association) guidelines, which state hitting a large animal calculates to 7% loss of value. Allstate said PurCo accepted these values (by cashing the checks and by not countering).

I then asked about Administrative Fee, DV Appraisal Fee, and Loss of Use. The Allstate rep said those were not mentioned in the notes. I take that to mean I have to try to get those waived. Tomorrow I will email Naomi Cantera, Corporate Customer Service Manager for Advantage. How does the following sound?

Hello Ms. Cantera,

My name is n64ra, and I am contacting you in regards to claim #ABC from PurCo.

On December 10, 2018, PurCo sent a bill to me for $18,948.40 for a damaged Advantage rental car. My insurance company Allstate sent a counteroffer for $12,633.87 to cover the physical damage and diminution of value. PurCo accepted this value.
I am writing you now in regards to the remaining charges of $542.08 for Loss of Use, $250.00 for Administrative Fee, and $45.00 for DV Appraisal Fee. I respectfully request that you remove the Loss of Use charge or provide proof that Advantage had no other cars available on the lot during the time in which the vehicle was repaired. Please remove the two fees as they are excessive. Like Advantage, I am also forced to deal with the responsibilities and duties of processing a damage claim.

Please respond within 7 days (Feb 15) as I wish to close this claim as quickly as possible.

Thank you.

Sincerely,

n64ra
 
Feb 1, 2019
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#11
The insurance companies don’t usually pay diminished value or any fees for the car being out of service either. That’s what they come after you for and what you have to negotiate yourself.

We have many posts on the car rental forum about this. You might want to read them and get ready for what the other people have done.
See above. Allstate did pay diminished value!
 
Feb 1, 2019
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#14
Here is the reply from aezrac.com:


Thank you for taking the time to inform us about this matter.

After further review I can inform that we will need Purco to contact us and confirm the information provided previously. The bill is now handle by them, so if this was discuss with them, they have to contact us to inform about this matter and proceed with us. You already made an arrangement with them and they have to deal with us directly since you are already set up. Please let them know that we are waiting for them to contact us in order to discuss this further and we will assist as we know we have to. Thanks in advance for your time and patience with this matter.



If you have any further questions or concerns feel free to contact our customer service department: toll free (800) 777-5500. We are open Monday-Sunday 8:00 AM -11:00 PM.
We hope to hear soon from you. Have a wonderful day.
Kind Regards,
Dayra Giron

The broken English is a bit hard to follow. I take away that Advantage wants me to tell PurCo to contact them? I am planning to reply to Dayra saying here is the PurCo contact info. You do it.
 
Feb 1, 2019
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#15
aezrac replied I or my insurance should contact PurCo claiming it's not in aezrac's hands. My email today will go to your Company Contacts, starting with Naomi Cantera, Corporate Customer Service Manager for Advantage.
 
Feb 1, 2019
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#18
Ms. Cantera responded:


"I have forwarded your case to our claims department Management for them to review and reach out to you as soon as possible."

I have a feeling this is going back to the previous round of people...