Insurance Problem
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| Fri, 11-11-2005 - 11:02pm |
Hi All,
I'm hoping someone can advise me on a problem I'm having.
A couple of weeks ago my daughter and I were in a car accident. We were waiting to turn onto our street when someone slammed into the back of us. Our car is in the shop being repaired and the other guy's insurance is paying for it. My husband rented a car that same day, expecting other guy's insurance to cover the costs. He took out optional insurance on the car, thinking he had to.
I spoke to the other guy's insurance company the next day and the woman told me that she would call the rental company and have the rental "switched over" to the insurance company. I assumed that it would no longer be in my husband's name. Yesterday we got a call from the rental company that the insurance has been accumulating at $16 and is now at $288! My husband called the company and cancelled the insurance and found out that the rental is still in his name, but the insurance company is paying the rental fee. They don't cover the insurance because we have collision and our insurance company would cover an accident in the renatl car.
That's all well and good, but does it sound right that the rental company would just continue to bill us for insurance, knowing that we're renting because we're accident victims and the insurance company is paying the rental fee? And is it shady for the insurance company to just pick up the tab for the rental, but leave the car in my husband's name so the renter's insurance can accumulate for two weeks?
I'm calling the insurance company again on Monday to try to get them to pay this fee. Do you think I have a chance?
Thanks.

I'm doubting you'll get reimbursed since the insurance was an extra, and usually the insurance companies only pay for specific things...and I doubt they would pay for your rental insurance. The rental insurance was in your name, so the rental company would be billing you, not the insurance company no matter who was paying for the actual rental of the auto.
I think you're just stuck in a bad situation, but it's worth a shot anyway.
I hope everything works out!
Littlesbigs
I just wanted to add that the rental would still be under your husband's name because if something happened to the car, your husband would be responsible. The insurance company is only paying for the car, they are not responsible for it.
Imagine this scenario:
You rear-end someone while in the rental car. You are responsible for the damages to the rental car and any other damage that you cause. The insurance company that is paying for your rental car is not responsible, but rather it is up to you and your own insurance company to settle it.
I don't think that the first insurance company was trying to dupe you and the rental company was not being shady because the insurance was an option that your husband had to agree to. The rental company can't know whether you really need the extra insurance or not. So, if your husband agreed to the insurance, but the insurance company that is paying the bill will not pay for it, it is customary for any above and beyond charges to be billed to the driver.
Windy
All sounds correct, to me, by reasons the other posters have explained. It's true that your husband slipped up by not asking whether his insurance would cover the rental, so now is obligated to pay for insurance - to which he signed.
However, it may be possible to have those insurance premiums reversed by showing proof of insurance to the rental company; proof that insurance has been in place since the day the car was first rented.
Hope it works out.
Msfit
&nbs