Damaged Rental, Paid for Damage waiver, Received a Bill from Sedgiwck

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Jan 2, 2019
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#1
I received a bill from Sedgiwck about a month after damaging a rental car from Budget for $1,200. The accident happened in a parking lot, put a big dent in the passenger side door, and did not involve another vehicle. The letter stated I was at fault and I am.

However, I paid for the loss and damage waiver. It is accepted on the rental agreement. I filled out the indecent form and gave it to the garage attendant when returning the car. Furthermore, Sedgiwck has filed with my insurance company! This is irritating considering I never had the option to simply pay Sedgiwck. But that is beside the point since I paid for the waiver from Budget.

Naturally, I contacted my insurance provider and informed them of the waiver as well as provided copies of all my rental documents. I have had no contact with Sedgiwck or Budget since they chose to drag my insurance company in.

Should I just wait it out at this point or get in contact with Sedgiwck/Budget myself?







Sedgwick after accident (not at fault)
 

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
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www.promalvacations.com
#2
What state did this happen in? Some states don’t accept LDW because it’s not insurance, and require personal auto insurance.

From Budgets website:

California, Iowa, Indiana, Louisiana, Hawaii, Massachusetts, Minnesota, New York, Nevada, Rhode Island and Texas, Consumer Protection:Under the laws of these states, a personal automobile insurance policy MUST cover the rental of this motor vehicle against damage to the vehicle and against loss of use of the vehicle. Therefore, purchase of any loss damage waiver or insurance for the risk of possible loss or damage to the car covered by the Agreement is NOT necessary if your policy was issued in one of these states. You should check your personal automobile insurance policy to review if the purchase of LDW would be duplicative of coverage afforded under your personal automobile insurance policy.

https://www.budget.com/en/products-services/protections/loss-damage-waiver
 
Jan 2, 2019
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#3
Hi Neil. Thanks for the response. This car was rented in Texas and the damage happened in Texas. Though, my personal auto insurance is from an agent in Oklahoma where I am a resident.
 

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
17,051
15,556
113
New York
www.promalvacations.com
#4
I believe the law means the state you are renting in, not the state you live in. Since the rental and accident happened in Texas and Texas is one that doesn’t recognize the LDW. That’s why your personal insurance has to cover the rental.
 
Sep 12, 2018
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#5
If it’s true that some states don’t recognize the LDW (and I’m not arguing that they don’t) what did the OP pay extra for? Is Budget really saying, “In several states, our LDW offers no benefits, but we offer it anyway, just in case we can hoodwink you into paying for it.”?
 
Likes: Mel65
Sep 19, 2015
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#6
Neil I read this the LDW exclusion to mean that by law a resident of TX who has car insurance in TX has coverage on a rental vehicle as it is mandated.

The law has to do with car insurance issued in the state and its coverage and it extends to rentals

Budget is saying that buying the LDW would duplicate the coverage in TX not that it is not recognized.

OP if you paid for the loss damage waiver you should be covered. Do not let them take this out of your insurance
 

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
17,051
15,556
113
New York
www.promalvacations.com
#7
Use our company contacts and write to Budget. They ultimately are the ones who need to make a determination and to settle this for you.

https://www.elliott.org/company-contacts/avis-budget/

These companies like Sedgwick that are the collection companies for the car rental companies are ruthless and I believe they try to intimidate the consumer to pay as it’s less work for them. Budgets corporate office can stop them.

Use this post about how to write and create a paper trail -

https://forum.elliott.org/threads/resolving-consumer-complaints-and-developing-a-paper-trail.8903/
 
Mar 23, 2015
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#8
Neil I read this the LDW exclusion to mean that by law a resident of TX who has car insurance in TX has coverage on a rental vehicle as it is mandated.

The law has to do with car insurance issued in the state and its coverage and it extends to rentals

Budget is saying that buying the LDW would duplicate the coverage in TX not that it is not recognized.

OP if you paid for the loss damage waiver you should be covered. Do not let them take this out of your insurance
You provided clarity around a confusing topic...at least to me. Thank you.
 
Sep 19, 2015
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#9
Mel65 here is a statement from a TX insurance company:

“Find out how much coverage you have on your own car. In most cases, the coverage and deductibles you have on your personal auto policy would apply to a rental car, providing it’s used for pleasure and not business.”

TX law makes one’s automobile insurance also apply to rentals for personal use — is which is why John Doe in Houston with car insurance would be covered for a rental in Dallas or New York if he is on a pleasure trip so no need to buy LDW. But Jane Smith who lives in NYC and no car or car insurance may want to get LDW for her trip to Dallas in case she has an accident.

Insurance is so confusing because the states are so different.
 
Jan 2, 2019
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#10
I called Sedgwick today. They screwed up the paperwork apparently. My damage waiver is valid. Yay! The caseworker is suppose to call my insurance company to cancel the claim and send me a letter of claim dismissal. We will see if that happens. So now my insurance knows I dinged up a rental due to Budget's clerical "error". Lovely. Could have been worse though.

Thanks for all of the feedback here. This is a very useful forum.
 
Likes: Neil Maley