Qustion: Our rental car was sideswiped by a tour bus when my wife and I were on vacation. We rented the car from Dollar, but we declined insurance because we have an auto policy with Safeco and a rep said we’d be covered if we had an accident. Safeco paid most of the $4,000 claim but refused to cover charges for what Dollar said was the car’s diminished value, loss of use and administrative fees. Those totaled $1,050. Help! - Jeffery Fear, Los Angeles
Answer: What a rotten way to end your vacation. You were smart to check your auto policy beforehand so you knew whether you needed the rental company’s pricey insurance (called the collision/loss damage waiver, or LDW), which runs $15 to $30 a day.
Problem is, rental-car firms are increasingly tacking on new fees when a car is damaged, including diminished value (to reflect the reduced resale potential of [...]
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