Insurance Company changed mind on rental car

[loyolacub68]

What is the name of your state?
California

Hello,

I recently was involved in an accident where someones car did not have the emergency brake engaged and their car rolled into my parked car. Initially, Farmers Insurance authorized Enterprise to loan me a rental free of charge at up to $100 a day. Enterprise put me into a car that cost $70 per day.

After my car was repaired, I returned the rental car. About two days later, I received a call from Enterprise stating that Farmers had changed their mind and would only cover up to $28 per day for the rental car. Enterprise then charged my credit card the $312 balance that was left unpaid by Farmers.

After numerous calls to Farmers, they basically have said that they will still not pay for the difference, even after they had originally said they would pay the $100 a day. I have called my credit card company to contest the charge. Is there any kind of law that prevents against this type of treatment? Thanks in advance for any help.

-Michael

 

[moburkes]

So, what rental amount is listed in your contract with the insurance company? Cause the contract is what counts (hint: written).

 

[las365]

Initially, Farmers Insurance authorized Enterprise to loan me a rental free of charge at up to $100 a day.

How was this information conveyed to you and/or Enterprise? Was in in writing?

 

[efflandt]

Do you have any rental coverage from "your own" insurance company? If not, and you only have one vehicle, that may be something to look into for the future.

 

[ecmst12]

That's a ridiculous amount of money to authorize for a rental. I could only guess that it was a mistake. If you didn't get it in writing, the insurance company will say that they never told you any such thing and their policy is $28/day.

 

[loyolacub68]

How was this information conveyed to you and/or Enterprise? Was in in writing?

I have a carbon copy of the contract I signed from Enterprise when I received the car that says the car is 69.99 a day and that I was authorized for up to $100 a day. Enterprise also said that they were sent a letter from Farmers Insurance stating that I was authorized for $100 per day.

 

[loyolacub68]

That's a ridiculous amount of money to authorize for a rental. I could only guess that it was a mistake. If you didn't get it in writing, the insurance company will say that they never told you any such thing and their policy is $28/day.

It is in writing, Farmers told Enterprise that amount and it is listed on my contract I signed when I received the car and it is stated on a letter that Farmers sent to Enterprise.

 

[ecmst12]

Then get a copy of the letter, and send it to Farmers, with a request to be reimbursed for the difference. If they still refuse, you may have to go to court, or file a complaint with the department of insurance.

 

[loyolacub68]

Then get a copy of the letter, and send it to Farmers, with a request to be reimbursed for the difference. If they still refuse, you may have to go to court, or file a complaint with the department of insurance.

They know of that letter and are still denying to cover the cost. I am going to call them tomorrow and let them know that I am going to ask my CC company to resolve the problem and that I will file a complaint with the California department of insurance. I just wanted to see what the law is. What keeps them from doing things like this? Is it because they are regulated by the department of insurance?