Should I settle this damage claim with National?

Should I pay or not?
Mike Kay needs your help.

A few weeks ago, he rented a car from National in Washington. When he returned the vehicle, an agent showed him a scrape on the passenger side panel (see image, above).

“We were positive it did not happen on our watch,” he says. “The car had been parked in ways such that that damage could not have occurred.”

But he admits he had a weak case. He failed to check the car before renting. It was late at night, and his kids were cranky. No time for an inspection.

“Now they are demanding our credit card number without telling us first how much the repair will be, and threatening a collection agency otherwise,” he says. “Can they get away with heaping that insult on the initial injury?”

No they can’t, I replied. I told him he shouldn’t give National his credit card until it sent him a bill, and until he agreed with the bill. And I said I’d help him if National unleashed a collection agency on him.

I talked about the problem of questionable damage claims in a recent article for the trade publication Auto Rental News. The bottom line is that while they’re bad for consumers like Kay, they’re probably worse for the car rental industry.

National followed up with a $267 repair bill, plus charges for loss of use and diminution of value. But when Kay pushed back, it offered to settle the claim for half the amount and to drop the extra charges for loss of use and diminution.

“We’re inclined to accept the offer to rid ourselves of this nuisance,” he says. “Unless you suggest otherwise.”

Here’s a copy of the invoice (PDF).

In order to help you with this decision, here’s the second photo of the damage.

My response? If Kay thinks he is or thinks he might be responsible for the damage — in other words, if it could have happened on his watch — he ought to pay. But if he’s certain this was a pre-existing condition, he shouldn’t.

But I agreed to put this out to you, dear readers.

Look at the pictures. Check out the invoice. Consider the circumstances.

What would you do?

  • jennj99738

     If you’re making a claim through your own insurance company, yes, I can see them requiring payment directly to the body shop. If you don’t fix it, you could claim the same damage again later in another accident.  Some damage can be seen as old, preexisting damage, but not all.  Then the insurance company could pay for the same damage twice.  Your policy may require this as well. 

    If you were making a claim through the opposing party’s insurance company for something like this, generally, they’ll just give you a check and make you sign a release.  They don’t care if you fix it or not.  And by you, I don’t mean you personally.  ;)

  • jennj99738

    The customer can take the time to inspect the car and note any damage on the paperwork and photograph it and do the same thing when the car is returned.  Then, the customer has proof he didn’t cause the damage.

  • http://www.facebook.com/profile.php?id=100001823466572 Jen Armstrong

    I completely understand that dealing with tired, cranky kids at night isn’t the ideal situation for inspecting a rental car. Maybe it was there, maybe it wasn’t, and there’s no way to say either way now. At least the OP isn’t being charged for loss or use or diminuation of value. It’ll probably cost much more in time and trouble than the billed amount, so just pay it and be done with it!

  • sershev

    Contact the credit card company you paid for the rentals with and send them the bill. They should cover it without affecting your own insurance rates.

  • http://twitter.com/mom_in_amarillo mom_in_amarillo

    I think I’m going to avoid renting a car unless my life depends on it.  130 is an OK settlement…but I still agree with other posters…if you don’t double check, it’s on you to prove it wasn’t already there.  

  • Michael__K

    If the customer doesn’t do this, do they deserve to pay for damage that someone else also paid for?

    Of course, the vendor could take the time to photograph the car too and thus ensure that they bill the guilty and not the innocent.

    BTW, not every single person who rents a car has a camera-equipped phone with them.   And a scratch may not even be visible in an indoor-garage flash-photo of the entire length of the vehicle.

  • http://pulse.yahoo.com/_OEPJGQPIEB75YYDE5CJY6R3VFE Carver Clark Farrow II

     The insurance company conned you. They’d rather pay a body that they have a relationship with, and they will try to get you to agree.  But you weren’t required to actually fix the damage.

  • Joe Farrell

    That looks likes normal rental car wear and tear to me. I don’t think I have EVER seen a rental car without several of those scrapes and dings unless it had less than 1000 miles.  Especially now that cars are being kept for a year longer than they used to be. 

    The whole loss of use thing is a total scam but we’ve beaten that horse dead – the fact that they’ll drop that claim so fast is evidence of that. 

    The only way, however, that I would pay them is if they sign a release.  And that release needs to contain a non-disparagement and non-reporting/ future rental discrimination clause so they don’t black list you.

    Once you offer to pay and send them the settlement agreement, their lawyers will tell them not to sign – whereas if YOU made a claim against them  – and they paid you money you’d be signing a release if they paid you money.  So you need to tell them ‘its just a standard release.’

    With the agreement to pay them their requested amount – once the lawyers tell them not to sign – that will be the last you hear of it . . .

  • Cybrsk8r

    Yea, I think I would go with a money order in this case.

  • MarkieA

    I guess my only concerns about that are that National, 1) could quite easily pass this damage along to several unwitting customers and get paid many times over for the same damamge, and 2) now has a “devalued” car. Are they going to adjust this value appropriately, so that the next time someone damages the car, the “full value” of the car isn’t used?

  • technomage1

    I have my questions about the invoice – for example, the removal of the wheelhouse cover and taillight, and the time estimate for the repair – $130 is a small price to pay to make this go away.  Check and document the next time, lesson learned.

  • http://www.facebook.com/people/Shannon-Duane/727596077 Shannon Duane

     The problem with that in this case is that if this guy DIDN’T damage the car, National might be running a scam and pulling this on everyone.  I’m not saying they did.  But if I was SURE I didn’t damage the car, I would be wondering.  So, I think the guy should pay for sure, because he didn’t check the car.  But I think he is also within his rights to make sure the car gets fixed.  Because if I don’t see that my money went to fix the damage that I supposedly caused, I’m REALLY going to wonder whether I caused that damage…