If you’re organising a rental car for a road trip and you’re offered “extra cover” as part of the package, make sure you read the fine print before signing as you may not be covered for natural disasters or major weather events.
Legal Aid Queensland consumer advocate and senior lawyer Loretta Kreet said the organisation had fielded calls from people whose rental cars were damaged in natural disasters and were being held financially responsible.
“Unfortunately, this is a common problem,” Ms Kreet said. “People think that as they paid extra money for protection against damage, they’re covered for any losses beyond the excess.
“But many car rental companies only offer Damage Waiver Reductions and despite what people may think, this is often not insurance.
“One caller who had to abandon their rental car in a forced fire evacuation in New South Wales has been told they will have to pay the daily rental rate until the rental company can get in to the area, inspect and recover the car.
“Not only are they still having to pay the daily rate, they may also be up for the recovery costs as well as any replacement costs if the car is destroyed by bushfire,” she said.
“Another caller late last year was renting a car which was damaged in one of the big hail storms and they were told they would have to pay for the damage.
“There are other types of insurance, including travel insurance people can explore and we would always encourage them to shop around and ask questions of the insurers to find the right cover to suit their needs so they can focus on enjoying their trip.”
Ms Kreet said people with a damaged rental car who are challenging liability for the damages, should write to their rental car company first to try to access its complaints mechanism. If they’re unsuccessful, they should get legal advice about other ways they may be able to resolve their complaint.
People can get legal advice from Legal Aid Queensland by calling 1300 65 11 88 or through a local community legal centre.
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Media contact: Amanda Catania (3917 0407) or Caroline Page (3917 0457)
Last updated 10 January 2020