The U.S. car rental market is expected to more than double by 2033. For consumers, it’s easier than ever to book online or via apps. But with all the off-brand companies, hidden fees, and unexpected charges, this growth may also represent more consumer exploitation.
Last November, Avis was ordered to pay $19 million to resolve a class-action lawsuit over its subsidiary, Payless Car Rental, improperly charging customers. If you were one of them, you’ve had to wait years for compensation–the suit was filed in 2016.
Earlier this year, I traveled to Tampa for a conference. I had found a good deal on Kayak on a compact vehicle for two days: $36 total – thankfully within my human rights lawyer budget. I arrived at the rental counter, waited in line with other sweaty travelers, and eventually reached the agent. I showed my proof of insurance and declined the additional insurance coverage. I even declined the SunPass toll transponder (I live dangerously). Before signing the contract, I was asked by the young clerk if my insurance coverage also included “Loss of use” protection.
Excuse me?
He recited the terms: my insurance must provide for coverage should the vehicle be unavailable for renting following my use of the car. He told me it was required.
“I can get that added for you, sir, for just $40. Per day,” he said. More than twice what I had expected to pay for the entire rental. With no other form of transportation and a long line of other grumpy cheapskates behind me, I begrudgingly accepted the charges and asked to speak to a supervisor. As you might expect, they were unavailable – they always are.
Of course, any savvy consumer will read the fine print and find the usual requirements of proof of insurance and being over the age of 25. But keep reading and you will find that some agencies limit the number of miles per day. Some charge you for returning a vehicle one minute late. Some charge you for returning a vehicle early. And sometimes employees at the rental agency will not know their own policies until a customer asks.
Part of the problem lies with third-party sites such as Expedia and Kayak, which do not include the “terms and conditions” of the rental agencies. But most of the problem lies with the rental agencies themselves, which do not provide their terms and conditions on their own poorly maintained websites.
My Tampa experience was just the beginning of my miseducation in the rental car business. I thought I had heard all their tricks. I discovered my knowledge was at a basic 4-cylinder level – this hustle is high octane. Pretexts for charging additional fees include:
“Your driver’s license address does not match the primary insurance address.”
“Your collision and comprehensive deductible are not sufficient per our rental policy.”
“Your insurance carrier is not currently recognized by our system.”
To be sure, certain countries and territories, for example, Puerto Rico, have supplemental requirements, such as an international driver’s permit. Often, additional fees are revealed only at the counter, when no realistic alternatives are available.
At some car rental agencies, there is not even a human agent present to greet you with the surprise charges. Just offsite from Houston Intercontinental Airport, one car rental building houses several agencies, where customers enter phone booth-style kiosks and are connected via video call to an agent located somewhere else in the world. A human chatbot, where customer service is neither service nor for the customer.
The industry’s race-to-the-bottom tactics are predatory. This past summer, I rented a vehicle in Orlando for less than a day, just a brief layover to visit an ill friend. I thought I had managed to dodge all the imposed extras and hidden fees, but when I returned the vehicle, with more time spent at the counter than miles driven, a young manager informed me a slight crack had been detected in the windshield. I would have to pay the $1,675 deductible.
The crack was a mark that resembled lint, not visible unless one was looking for something to report. The proof that it was I was the customer who caused the supposed crack was the pre-rental inspection slip that did not show my objection. I argued both points forcefully and respectfully, but they had home-court advantage as I risked missing my flight. The indifferent manager told me to just report it to my insurance so they would pay my claim and later reimburse me. So matter of fact. Is that the business model?
I did not open a claim. Instead, I contested the charges with my credit card, which had them removed. I called my bank to thank them and ask if this is a common occurrence. Unfortunately, the agent was not at liberty to speak on-the-record but confirmed she has ample experience handling these matters.
“Lo barato sale caro” says my grandmother when her thrifty ways lead to lemons. She loves a good deal, but the saying can be true: “The cheap ends up expensive” (or “you get what you pay for”).
So, renters beware. A phone call before signing up with the too-good-to-be-true rental agency may save you some headaches and hidden fees. If they answer.