Can I be charged a fee for declining a rental company’s CDW?

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Mar 5, 2018
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#1
Booked a 3 week rental with a company called Clubs Cars at MIA. Saw they had horrible reviews only AFTER making the booking so I thought I’d better check their T&C’s so there are no surprises on pickup. At least they have them posted, which is more than I can say for some companies! Two things struck me as extremely shady:

“RECOVERY DAMAGE FEE) WILL BE APPLIED IF YOU DECIDE TO USE: YOUR OWN CAR INSURANCE / YOUR OWN CREDIT CAR INSURANCE / ANY INSURANCE OR PROTECTION BOUGHT IN ANY WEBSITE: A $10 per day will be applied to your contract. this charge can be avoided taking our CDW protection, which offer total protection for our car.”

and

“The deposits is based on the type of vehicle and insurance coverage, usually from $100.00 to $2500 Only credit card deposits.”

Am I reading this right that they are proposing to charge me $10 per day for declining their CDW even though I am fully insured already for both liability and collision damage in a rental? And I know they have a right to take a deposit, but I thought it was illegal to base the amount on what type of insurance you carry.

I will probably end up cancelling, but I still want to know if these policies are legal.
 
Mar 25, 2015
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#2
it will be a hold on your credit card and you will get it back at the end of your rental. so not illegal. just really inconvenient.
 
Mar 5, 2018
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#3
it will be a hold on your credit card and you will get it back at the end of your rental. so not illegal. just really inconvenient.
Looking at my post I realize it may be confusing. On the website these are actually presented in separate sections, as two SEPARATE fees. I get that the second one is a damage deposit that should be refundable, but it looks to me like this fee in the first part is really that, a fee that you are charged for having your own insurance coverage. Here is the website, for reference: http://clubscarrental.com/english/faq.aspx
 
Jan 6, 2015
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#4
My reading on their web site is "yes" about the $10 per day. This strikes me as similar to the cash vs. credit price at certain fuel stops. In addition they limit carriers to the following: State Farm, Liberty Mutual, Geico, Progressive, All State and Infinity.

and they require proof that said insurance has collision coverage. The deposit is typical ...
 
Sep 19, 2015
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#5
Yes they seem to charge $10 per day not to take their CDW— seem like a terrible company with initially low rental fees and then many extras. I would cancel the reservation. Is it legal? Perhaps. One would have to read the laws but I am not sure that there is a specific law prohibiting junk fees.
 
Last edited:
Mar 5, 2018
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#7
I canceled. I prefer to support small local businesses when possible but perhaps that’s not a good idea in this business.

Also, it seems like it’s borderline extortion to charge people a fee for not buying an overpriced CDW.
 
Likes: Neil Maley

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
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www.promalvacations.com
#8
I canceled. I prefer to support small local businesses when possible but perhaps that’s not a good idea in this business.

Also, it seems like it’s borderline extortion to charge people a fee for not buying an overpriced CDW.
I think you did a wise thing. What brought you to this company? I’ve never heard of them but it shows you need to read everything before you book. Thankfully you didn’t book a non refundable rate.
 
Jan 6, 2015
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#9
Neil: I saw that they rent exotics and convertibles, which would be draw in Miami. $1400 per day for the top end Ferrari ..
 

Barry Graham

Administrator
Staff Member
Director
Jan 7, 2015
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#12
In some countries all of the rental agencies charge extra for using your credit card insurance rather than theirs. So this is not new.
 

jsn55

Verified Member
Dec 26, 2014
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#13
Good call, Olaf. The rental car companies are pulling enough shenanigans that you don't need to add to them by renting a vehicle from a company nobody ever heard of. Whomever you book with, be very careful about all the details, take the photos, etc ... even the national brands are trying to scam their customers these days. Reading our insurance forum is a hair-raiser. For the record, I have rarely purchased the company's insurance, always use my own except in places like Ireland and Italy. Nobody has ever said a word about any kind of penalty ... but all my rentals have been in the US or Western Europe.
 
Likes: Neil Maley