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-   -   How does car insurance work? Declined LDW on Car Rental, Got into accident (

  • May 12, 2016, 01:33 PM
    How does car insurance work? Declined LDW on Car Rental, Got into accident
    I live Toronto, Canada and on MAY 8, I reserved a car with THRIFTY Car Rentals at $32 for one day and declined their LDW (loss damage waiver). They ran out of cars and gave me a Dodge minivan which was available for the same price. I used my BMO Mastercard for the car rental (which I thought covered car rental insurance, but only with an add-on for $35/yr, which I DID NOT have before taking the rental vehicle). About 5 minutes of driving the vehicle out of the rental place, I got into an accident with another driver. My minivan T-boned (at about 20-30km/hr) the other car which was taking an improper left turn from opposite road. I was NOT at fault. Both airbags deployed on my minivan and there was damages to front bumper and windshield. I exchanged insurance info with other driver, and the firefighters helped with the scene. No police officers were called in (even though I requested by phone). My minivan was then towed (as well the other person's vehicle) to a nearby collision center (operated by police) where I did some paper work regarding the incident. The collision center estimated the damage to be $6,000. But I suspect the actual cost would be around $10,000. Anyway the same day after the accident, I called in my BMO Mastercard to purchase the car rental insurance for $35. I have yet to open any claims. The rental company is asking me to open a claim with my insurance... but I don't know how to proceed. I had a similar situation last year where I rented out from ENTERPRISES (declined their LDW) and a vehicle hit my car from behind (again I was NOT AT FAULT). I had valid car rental insurance with another credit card at that time. After couple of weeks, Enterprises send me a letter with damage repair bills (est $7000) to be paid by me (or my insurance) but then send me another letter couple of days later stating I am not responsible for the damages because I was not at fault and the other vehicle's insurance would be paying for it. Should I be expecting the same scenario from THRIFTY?
  • May 12, 2016, 02:18 PM
    You cant request accident insurance after the incident with MC. Why would you expect that. You should have requested that at the time of renting the car from Thrifty. You don't have a good driving record, and I doubt anything you say in this post is correct.

    What are you, a serial car rental aficionado who looks for accidents to happen. I don't get anything from your explanation. It is totally weird.
  • May 12, 2016, 02:28 PM
    Too late for LDW, without it inforce on your CC, you are on the hook UNLESS the other party is determined to be at fault. With that much damage, I would never have left the scene without a police report and you will never get one after the fact. Who determined it was, to quote you, "the other car which was taking an improper left turn from opposite road. I was NOT at fault"?
  • May 12, 2016, 05:37 PM
    First, you need to work with Thrifty and file a claim against the other driver's carrier. I'm not sure whether you or Thrifty should be the claimant here. Or be joint claimants.

    The next question is whether you have coverage through your personal car insurance if you have a policy. You don't have coverage through Thrifty or your credit card. In fact, if your credit card carrier found out you tried to get insurance after the fact, you might be prosecuted for fraud,

    So right now you are on the hook personally for the cost of repairing the minivan. You have a claim against the other driver assuming you are right that it was solely their fault.
  • May 12, 2016, 06:40 PM
    To late, you did not have and/or purchase the credit card insurance before the wreck. Had you called and purchased before you got into the car, great.

    Now it will not cover you at all.

    You will not be liable personally for this money. You may talk to your personal car insurance company(if you have any) sometimes (not always) they may cover a rental car, if you had purchased that rider before.

    Now, it appears you may have to just pay for the damages personally
  • May 13, 2016, 09:14 AM
    Yes I am certain I was not at fault.,-79.3744496,3a,75y,79.21h,90t/data=!3m6!1e1!3m4!1sDWlF2x2Q8a98Ss-gvDhhgQ!2e0!7i13312!8i6656

    This is me going straight at about 40-50 km/hr and t-boning the other vehicle (at about 20-30 km/hr after hitting the brakes) who was turning a left towards where the red mailbox is. I probably could have avoided it by defensive driving.

    The problem is I did not purchase LDW and did not have car rental insurance with my credit card at the time of accident.

    But the car rental had valid INSURANCE. If I was not at fault, wouldn't the car rental INSURANCE be able to make the other party's insurance pay for the damages to the car rental? Or does this process HAVE TO go through my own car insurance (personal or credit card)?
  • May 13, 2016, 10:03 AM
    Without a police report or witnesses you have no basis for saying you were not at fault. All the other person has to say is that they turned and you, driving too fast, hit them. From what you have posted, you may indeed be on the hook. What does the other parties insurance company say? They may say No Fault and then you will have to pay.
  • May 13, 2016, 10:11 AM
    LDW is not retroactive. It will not cover an accident after the fact. Much of this will depend on your personal insurance policy. Without a police report it's a he said/she said situation.

    Be prepared to pay and take this as a lesson learned that taking out an insurance policy may cost you, but it also protects you.
  • May 13, 2016, 08:12 PM
    What you are on the hook for is what amounts to a high deductible. Unless gross negligence is involved then it could be the whole thing. If you had full coverage insurance on your own vehicle... it might have covered anything over your deductible up to the responsibility on the rental. Mine does. But I would assume not all do.

    WIthout it.. you owe it. As was mentioned. Expensive lesson to learn but yes you are legally on the hook for it.

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