New York Law Journal Rips Into Rental Companies

Wise Clients Inspect Rental Cars Carefully

Thomas A Dickerson was in no mood for pulling punches when he wrote as follows in New York Law Journal. “After 40 years of writing about travel law … the worst by far violators of consumer rights in the travel industry are some U.S. rental car companies.” Take the recent Heather Venerus case as an example.


Avis / Budget Sold Hollow Supplemental Insurance


Heather Venerus complained to the 11th Circuit Court that “Avis / Budget were selling supplemental liability insurance or additional liability insurance (SLI / ALI) to a class of foreign car renters. This was inter alia breach of contract, and violation of the Florida Deceptive and Unfair Trade Practices Act.”

She further claimed Avis / Budget, “promised SLI / ALI coverage as a policy provided through Ace American Insurance Company, an insurer authorized to provide such coverage in Florida. However, Avis / Budget never purchased the policy, or provided it to the foreign renters who purchased the optional coverage.

This was despite Avis / Budget’s contractual obligation to do so.” Instead, Thomas A Dickerson describes how Avis / Budget “purported to insure the foreign renters itself, with contractual liability coverage that had no policy or written terms.”

Lacking the authority to transact such insurance in Florida, Avis / Budget allegedly left the renters without the legally valid insurance coverage they were promised and had purchased.” The court notes Avis / Budget did not dispute the fact.


How Rental Industry Rip-Off Waivers May Fleece


Thomas A Dickerson goes on to explain, “a variety of deceptive and unfair business practices by some rental car companies” over the past 25 years. He cites as example Hertz selling collision damage wavers of $1,000 deductibles for $6 a day.

This rate annualized to almost double the value of the cover, and was therefore unreasonably high. Moreover the clients may not have known this might duplicate their own existing insurance. There are many more examples of malpractice in the New York Law Journal report.

Thomas A. Dickerson is a retired Associate Justice of the Appellate Division, Second Department of the New York State Supreme Court. We can therefore trust the information he provides, and use it as direction to inform our own decisions.

Bonzah exists to provide a better solution to the insurance needs of rental car clients. You could save over $100 on a 5-day rental and get up to $35,000 in return with no deductibles. Moreover, our cover is valid, legal, and arranged through Arch Insurance for your peace of mind.

Recent News:

Did Tempers Flare at Salt Lake City Airport

What Could a Collision Damage Waiver Mean?

Wise Clients Inspect Rental Cars Carefully: Osseous BY CC 2.0

Thomas A Dickerson Report