Avis Rental Accident/Sedwick Claims - additional fees

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Jan 4, 2019
5
1
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#1
I was in a car accident in Oregon while driving an Avis rental 9/10/18. I did not opt for the additional insurance and therefore used my insurance company USAA to settle.
I kept all contracts, police reports and documents pertaining to the accident. USAA said the other driver was 80% at fault and I was 20% at fault.
Sedgwick Claims Mgmt Services- ABG Recovery US sent a letter stating that I am responsible for cost associated with damage regardless of fault.
Please find a sample from the letter below.

Dear Ms. Jones
**** The amount for which you are responsible is calculated as follows:
~Vehicle Damage: $5670.85
~Lost of Use: $386.36
~Administration Fee: $300.00
~ Storage & Towing: $0
~ Diminishment of Value: $567.09
We have received a check from your insurance company for $5170.85. You are responsible for paying the remaining balance of $1753.45 which includes your deductible of $500.00.

These fees seem exorbitant and fabricated. Am I obligated to pay this amount? Should I proceed with emailing Avis custserv@avis.com asking for proof of why the $1753.45 was requested from Sedgwick? I would appreciate input on how to proceed.

Thank you for taking the time to help!
SRJ
 

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
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113
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www.promalvacations.com
#2
It doesn’t matter who was at fault- you owe for the damages to the car. Your issues are the admin fees and loss of use and diminished value and you should fight this.

You want to ask for proof of diminished value and loss of use. They need to provide you with proof that they had no other cars on their lot to rent out while the car was being repaired to claim loss of use. And you also want proof of the diminished value.

Use our company contacts and tell them without proof of that you refuse to pay any more.
 
Jun 30, 2017
992
908
93
Maui Hawaii
#3
I was in a car accident in Oregon while driving an Avis rental 9/10/18. I did not opt for the additional insurance and therefore used my insurance company USAA to settle.
I kept all contracts, police reports and documents pertaining to the accident. USAA said the other driver was 80% at fault and I was 20% at fault.
Sedgwick Claims Mgmt Services- ABG Recovery US sent a letter stating that I am responsible for cost associated with damage regardless of fault.
Please find a sample from the letter below.

Dear Ms. Jones
**** The amount for which you are responsible is calculated as follows:
~Vehicle Damage: $5670.85
~Lost of Use: $386.36
~Administration Fee: $300.00
~ Storage & Towing: $0
~ Diminishment of Value: $567.09
We have received a check from your insurance company for $5170.85. You are responsible for paying the remaining balance of $1753.45 which includes your deductible of $500.00.

These fees seem exorbitant and fabricated. Am I obligated to pay this amount? Should I proceed with emailing Avis custserv@avis.com asking for proof of why the $1753.45 was requested from Sedgwick? I would appreciate input on how to proceed.

Thank you for taking the time to help!
SRJ
You need to go back to USAA and have them negotiate for you and get a release of the claim. That is their (USAA's) job. USAA also then needs to go after the person 80% responsible for the accident. Call USAA now.
 
Nov 20, 2015
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#5
If you rented your car using the USAA discount code, or rented through the USAA portal, then Avis, Hertz, Budget, and Enterprise will waive the loss of use, administrative fees, and diminished value charges. If this applies to you, you should call USAA member services and those claims should be withdrawn. This is a great benefit of USAA membership. Otherwise, you may have to negotiate as the others have said. I've found the rates for most locations through the portal to be among the best available anywhere.
 
Jan 4, 2019
5
1
1
47
#6
It doesn’t matter who was at fault- you owe for the damages to the car. Your issues are the admin fees and loss of use and diminished value and you should fight this.

You want to ask for proof of diminished value and loss of use. They need to provide you with proof that they had no other cars on their lot to rent out while the car was being repaired to claim loss of use. And you also want proof of the diminished value.

Use our company contacts and tell them without proof of that you refuse to pay any more.
This is the email I sent to AVIS Customer Service -
Dear Customer Service Representative:



I am reaching out to you regarding my Avis Rental Agreement U329829253 car accident which occurred in Oregon on September 10, 2018. I was contacted by Sedgwick Claims Management Service ABG Recovery US (please find copy of letter attached) via letter dated 12/27/18, received on 1/4/19.

My insurance company USAA sent a payment on 12/18/18 of $5,170.85 which is full payment for damages with the exception of the $500.00 deductible.

I respectfully request Proof of the $567.09 Diminished Value charge and $386.36 Loss of use charge. I am asking that you provide proof that Avis/Seattle/Portland had no other vehicles on the lot to rent while this car was being repaired as well as concrete proof of the $567.09 diminished value.

I respectfully refute the $300.00 administration fee. I do understand that I owe my $500.00 deductible as outlined in my USAA Insurance policy.



I look forward to hearing from you by January 15, 2019 as I am eager to rectify this matter. I also request that you contact Sedgwick Claims Management Service ABG Recovery US and ask them not to escalate this claim any further. I should have at least 60 days from the date of contact (12/27/18) to rectify this matter.

I ask that you please forward this email to the manager of your customer service/auto claims department.



Thank you,

SRJ
 
Jan 4, 2019
5
1
1
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#8
Jan 8th same day reply from - Joe Rogel - Sedgwick Recovery Claims Team Lead

Dear Ms. Jones,

I have received communication from Avis Budget Group regarding your inquiry in reference to the claim number noted above. As the claims administrator for Avis Budget Group (ABG), we have full authority to settle claims on their behalf.


I have reviewed your claim and see that we have received payment for vehicle damages from your insurance carrier, USAA however it leaves a balance due which includes your deductible and fees for which you are contractually liable. You requested support for the fees which is shown below:


13. Damage/Loss to the Car. If you do not accept LDW, or if the car is lost or damaged as a direct or indirect result of a violation of paragraph 14, or damaged as a result of an act of nature, you are responsible and you will pay us for all loss of or damage to the car regardless of cause, or who, or what caused it. If the car is damaged, you will pay our estimated repair cost, or if, in our sole discretion, we determine to sell the car in its damaged condition, you will pay the difference between the car’s retail fair market value before it was damaged and the sale proceeds. Where permitted by law, you authorize us to charge you for the actual cost of repair or replacement of lost or damaged items such as glass, mirrors, and antenna, as part of your rental charges at the time of return. If the car is stolen and not recovered you will pay us the car’s fair market value before it was stolen. As part of our loss, you’ll also pay for loss of use of the car, without regard to our fleet utilization, plus an administrative fee, plus towing and storage charges, if any (“Incidental Loss”). If your responsibility is covered by any insurance, credit card benefit, travel insurance or other such insurance or benefits, you authorize us to contact the benefit provider directly on your behalf and assign of your benefits directly to us to recover all consequential and incidental damages including but not limited to the repairs of the vehicle plus diminished value or the fair market retail value of the car (less salvage value plus costs incurred in the salvage-sale), and all loss of use, towing, storage and administrative fees.


I direct you to the bold/italicized portions of the rental terms and conditions above and the explanation of fees below.


Loss of use as shown above is based on the actual damaged vehicle without regard to fleet utilization. As such, no supporting documents are required. In this particular case, the loss of use charge was calculated based on the estimate repair time of the vehicle. 9.38 days at rental rate of $41.19/day.


Administrative fees are charged on a scale of the damage amount. Damage exceeding $3000 are billed at $200. Additionally there is a $100 appraisal fee.


Finally, diminished value is charged at a flat 10% of the damage amount. The industry accepted method of DV calculation is the 17c formula, which we have found comes out higher than the flat 10% used.


Please understand that Sedgwick on behalf of ABG is under no obligation to reduce or waive the fees for which you are contractually responsible. However, we do have the ability to negotiate settlement. The loss of use is owed as is. It is justified and supported by the estimate of damage. Additionally the appraisal is warranted as without the vehicle being damage, an appraisal would not be necessary. I am willing to settle the matter for a total of $986.36 which includes your deductible and the fees mentioned above.


My apologies for the extensive email, however I wanted to provide a full explanation of the renters responsibilities. If the above noted settlement offer is acceptable, I ask that you contact our FastTrack Team at 844-859-7291. They would be happy to assist with accepting a credit card payment or providing remittance information.


Kind Regards,

Joe Rogel | Recovery Claims Team Lead
Sedgwick Claims Management Services, Inc.
Direct 216-520-7534 | Email Joseph.Rogel@sedgwick.com
***********************************************************************************
~ Is this my best possible outcome? Should I peruse with AVIS or Should I settle with Sedgwick directly for the $986.36? Thanks so much for your help!
SRJ
 
Jun 30, 2017
992
908
93
Maui Hawaii
#9
Jan 8th same day reply from - Joe Rogel - Sedgwick Recovery Claims Team Lead

Dear Ms. Jones,

I have received communication from Avis Budget Group regarding your inquiry in reference to the claim number noted above. As the claims administrator for Avis Budget Group (ABG), we have full authority to settle claims on their behalf.


I have reviewed your claim and see that we have received payment for vehicle damages from your insurance carrier, USAA however it leaves a balance due which includes your deductible and fees for which you are contractually liable. You requested support for the fees which is shown below:


13. Damage/Loss to the Car. If you do not accept LDW, or if the car is lost or damaged as a direct or indirect result of a violation of paragraph 14, or damaged as a result of an act of nature, you are responsible and you will pay us for all loss of or damage to the car regardless of cause, or who, or what caused it. If the car is damaged, you will pay our estimated repair cost, or if, in our sole discretion, we determine to sell the car in its damaged condition, you will pay the difference between the car’s retail fair market value before it was damaged and the sale proceeds. Where permitted by law, you authorize us to charge you for the actual cost of repair or replacement of lost or damaged items such as glass, mirrors, and antenna, as part of your rental charges at the time of return. If the car is stolen and not recovered you will pay us the car’s fair market value before it was stolen. As part of our loss, you’ll also pay for loss of use of the car, without regard to our fleet utilization, plus an administrative fee, plus towing and storage charges, if any (“Incidental Loss”). If your responsibility is covered by any insurance, credit card benefit, travel insurance or other such insurance or benefits, you authorize us to contact the benefit provider directly on your behalf and assign of your benefits directly to us to recover all consequential and incidental damages including but not limited to the repairs of the vehicle plus diminished value or the fair market retail value of the car (less salvage value plus costs incurred in the salvage-sale), and all loss of use, towing, storage and administrative fees.


I direct you to the bold/italicized portions of the rental terms and conditions above and the explanation of fees below.


Loss of use as shown above is based on the actual damaged vehicle without regard to fleet utilization. As such, no supporting documents are required. In this particular case, the loss of use charge was calculated based on the estimate repair time of the vehicle. 9.38 days at rental rate of $41.19/day.


Administrative fees are charged on a scale of the damage amount. Damage exceeding $3000 are billed at $200. Additionally there is a $100 appraisal fee.


Finally, diminished value is charged at a flat 10% of the damage amount. The industry accepted method of DV calculation is the 17c formula, which we have found comes out higher than the flat 10% used.


Please understand that Sedgwick on behalf of ABG is under no obligation to reduce or waive the fees for which you are contractually responsible. However, we do have the ability to negotiate settlement. The loss of use is owed as is. It is justified and supported by the estimate of damage. Additionally the appraisal is warranted as without the vehicle being damage, an appraisal would not be necessary. I am willing to settle the matter for a total of $986.36 which includes your deductible and the fees mentioned above.


My apologies for the extensive email, however I wanted to provide a full explanation of the renters responsibilities. If the above noted settlement offer is acceptable, I ask that you contact our FastTrack Team at 844-859-7291. They would be happy to assist with accepting a credit card payment or providing remittance information.


Kind Regards,

Joe Rogel | Recovery Claims Team Lead
Sedgwick Claims Management Services, Inc.
Direct 216-520-7534 | Email Joseph.Rogel@sedgwick.com
***********************************************************************************
~ Is this my best possible outcome? Should I peruse with AVIS or Should I settle with Sedgwick directly for the $986.36? Thanks so much for your help!
SRJ
Again, you need to call USAA. They are your representatvie and they can advise you if there are any other options.
 
Likes: Neil Maley