Thrifty wants diminished value

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Oct 24, 2018
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#1
I need help with same issue. I have Erie Insurance in Maryland rented a car in Indiana from Thrifty. I was hit by an uninsured motorist resulting in $5000 in damages which was paid by Erie minus my uninsured motorist deductible of $250. Now, Thrifty is billing me $1250 for loss of use ($300) administrative fee ($150) and diminution of value ($800). I am being told by Thrify and Erie that this balance is now my responsibility because none of this is considered covered damages under my auto polity. Any advice or suggestions? Should I got to my state insurance commission for help? Thank you
 
Oct 24, 2018
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#2
Joe's suggested response to a car rental company trying to get a diminished value payment

Dear Purco:
We deny your claim since you cannot prove damages. The vehicle is already a rental and has diminished value the result of being used in fleet operations. Evidence of bad faith is a lack of adjustment for that part of the claim at the outset.


(what joe is saying is, within their claim of diminished value, do you see an adjustment for diminished value due to the fact that this is a rental car? If you dont, this diminished value claim was written in bad faith)

We deny we have damaged Budget in excess of the value of the repairs, which have already been paid.

We rely on the decision of our insurance company to deny your claim for further damages. We contend we owe you and your principal zero further damages. We revoke any consent to charge our credit card previously given.

We remind you that the contract contains an attorneys fee clause which is made mutual by the laws of both Hawaii and our state of residence. You cannot prove diminution of value nor can you prove loss of use damages, thus, we deny owe you anything. The contact provides for payment of those damages if you can prove them to a preponderance of the evidence. Our insurance carrier rejected your claim, which proves to us your further claims are without merit.

If you wish to sue us, please do so, in this manner we can resolve this claim. I remind Purco once again that we will seek full indemnification if you bring a further claim and are unsuccessful.

Won't this approach get the renter blacklisted by the insurance company and its affiliates?
 
Sep 19, 2015
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#4
That letter is not actually appropriate as you were hit by an uninsured driver and do not deny that there was damage?

Do they have an appraisal for diminished value?

No car that has been in an accident is worth the same post accident.

If your policy does not cover these things, then your insurance company is right. What kind of proof have they shown.

One thing I should mention -- one of these companies, Purco is really aggressive -- they have taken people to court over various fees less than $500 -- and won -- in different states, so not relevant in Maryland, but it shows what they are willing to do.

"On Jan. 2, the district judge in PurCo v. Koenig ordered renter Judith Koenig to pay PurCo $247,890 in attorney’s fees and $11,120.25 in litigation costs for prevailing on its claim of $378 in loss-of-use damages and a contractual administrative fee. These amounts represent the fees and costs incurred by PurCo in the suit. "

But here is a renter who had better success with negotiating the fees:

https://forum.elliott.org/threads/m...-and-credit-card-company-actually-cover.7651/
 
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Likes: Neil Maley
Feb 23, 2018
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#6
Obtain a Diminished Value Appraisal from a competent independent appraiser, preferably one that does not use short-cuts such as formulas, algorithms, NADA comparisons, carfax.com ads, etc. You are, unfortunately, on the hook for these charges.
 
Mar 17, 2015
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I would also talk to your insurance company, many times they make the claimant sign a statement saying it is in full satisfaction of the claim. If they did not, go back to your insurance again and show them this bill. This is why we have insurance. You pay for it, so should be able to utilize it fully. Not get the run around when someone did not do their job properly.
 
Oct 24, 2018
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#8
So this has been going on two weeks. It has become my full-time job unfortunately. My insurance company is now telling me that my Thrifty contract does not mention anything about potential liability for diminished value and Thrifty has not sent any back up of their diminution of value calculation. According to my insurance company diminution of value is a gray area in Indiana. I cannot find any mention of it in the Indiana rental statute IC 24-4-9. I am in pre-collections with Thrifty and was told in a threatening letter I have two weeks before being sent to collections and permanently blacklisted by Hertz, Dollar and Thrifty. I have written to Hertz corporate by email (not heard back) and am contemplating contacting the MD insurance commission and a consumer advocate. Also I think Thrifty have have committed violations of the FDCPA, but I am not sure I will pursue that.

Any further advice is welcomed!
 
Oct 24, 2018
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#9
I want to add the Erie insurance said they did not get a release from Thrifty when they paid $4700 for property damage. Also at first they told me that since they paid under the policy what they are required to that they had no standing to continue to advocate for me on the Loss of Use and Diminution of Value claims. Also, They they did not get a release and never do in these situations. Should they have gotten one?

I can hold out and let them send me to collections, but since the national rental industry is controlled by 3 companies, I will be severely limited renting cars in the future if I cannot rent from Hertz, Thrifty or Dollar. The latter two often have the lowest national rates.
 

Neil Maley

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Advocate
Dec 27, 2014
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www.promalvacations.com
#10
Have you followed our advice and tried to fight this through Corporate? You are owed an invoice showing the diminished value.

https://forum.elliott.org/threads/how-to-deal-with-a-car-rental-damage-claim.1514/

You might need to contact an attorney if you are concerned about your credit report right now. If they put something in your credit file you have a right to answer it and have that answer shown on your report.
 
Feb 17, 2018
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#11
Loss of Use and Administrative Fees are contractual fees based on your rental contract, these are rarely paid by automobile insurance. Some credit cards though may provide some coverage that may pay it though.

Diminished value claim is a legal concept which allows the injured party to recoup lost value due to the vehicle having been in an accident. Thanks CarFax! ;)

You mentioned Indiana, so I'm assuming that is where the accident happen. You will find some good information on diminished value claims at https://www.indianapilaw.com/vehicle-accidents/diminished-value-claims/ .

The most common method used to determine diminished values, which was validated in a Georgia legal case, is the 17c formula. Google it for all you ever wanted to ever know about it.
 
Oct 24, 2018
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#12
Have you followed our advice and tried to fight this through Corporate? You are owed an invoice showing the diminished value.

https://forum.elliott.org/threads/how-to-deal-with-a-car-rental-damage-claim.1514/

You might need to contact an attorney if you are concerned about your credit report right now. If they put something in your credit file you have a right to answer it and have that answer shown on your report.

I emailed the first corporate Monday but on response as of Thursday night. I am not sure when to contact 2nd corporate person as I apparently only have about 10 days before this goes to collections. I am not sure why you mention my credit file at this point?
 
Oct 24, 2018
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#14
Didn’t you say you are concerned about them sending you to collections?

If a week passes, then you write to the next executive we show on our company contacts.
Yes I am concerned about being sent to collections but not necessarily about my credit report at this time. I am sending my 2nd letter to corporate today and am also waiting for a call back from Erie Insurance who is still supposed to be working on resolving this with Thrifty.
 
Oct 24, 2018
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#15
Second email sent to Hertz. My Erie agent said he has never had an insured billed by insurance company for loss of use and dimished value. I am will to pursue this for a while but not to point where I risk owing tens of thousands in attorney fees and court costs out of my own pocket.
 
Oct 24, 2018
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#17
Update, I think Erie got tired of me and they escalated this claim to resolution. They paid Thrifty for diminution of value and Thrify waived the loss of use and admin fees. While Erie initially said they had no standing to advocate for me on these three fees after paying for the rental vehicle repair under my uninsured motorist coverage, in the end they said that the claim was covered and they had responsiblity under my auto policy to work out the actual damages directly with Thrifty. I never did hear from corporate and hope that I have not already been blacklisted.

Last week I rented another car but this time I used a credit card which has primary coverage. I am honestly not sure if that is a good or bad idea.
 
Jun 30, 2017
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#19
Update, I think Erie got tired of me and they escalated this claim to resolution. They paid Thrifty for diminution of value and Thrify waived the loss of use and admin fees. While Erie initially said they had no standing to advocate for me on these three fees after paying for the rental vehicle repair under my uninsured motorist coverage, in the end they said that the claim was covered and they had responsibility under my auto policy to work out the actual damages directly with Thrifty. I never did hear from corporate and hope that I have not already been blacklisted.

Last week I rented another car but this time I used a credit card which has primary coverage. I am honestly not sure if that is a good or bad idea.
Glad to see that your insurer stepped up as you have paid them to do.

We have had two auto rental damage claims (both our fault) and used our credit card as primary insurance both times. In each case, they paid without a problem. The only issue we had was that in one case the rental agency took 8 mos to provide the paperwork, but we kept the CC updated and they paid without hesitation. I routinely use my CC as primary on rentals worldwide (have rented for many weeks in NZ, Canada, and Fr Polynesia in the last year) without any concern.
 
Likes: jsn55
Oct 24, 2018
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#20
Glad to see that your insurer stepped up as you have paid them to do.

We have had two auto rental damage claims (both our fault) and used our credit card as primary insurance both times. In each case, they paid without a problem. The only issue we had was that in one case the rental agency took 8 mos to provide the paperwork, but we kept the CC updated and they paid without hesitation. I routinely use my CC as primary on rentals worldwide (have rented for many weeks in NZ, Canada, and Fr Polynesia in the last year) without any concern.

Interesting. So do you have any deductible with the credit card? Would they cover loss of use and diminution claims? How many claims does the credit card company allow?
 
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