A car rental insurance lawsuit may be an option for foreign customers who paid for extra car rental insurance but did not receive coverage. According to a class action lawsuit filed in Florida, several car rental companies have been allegedly charging customers from outside the United States and Canada for insurance and not providing it. As a result of this alleged scheme to pocket the insurance premiums, foreign customers who rented a car through Alamo, Enterprise and other rental companies may be able to pursue a claim with the help of a consumer fraud attorney.
For more information, contact Attorney Group today. Our consultations are free, confidential and without any obligation on your part. We can help answer your questions, and if you choose to pursue a claim, we can connect you with an affiliated consumer fraud attorney who can assist you throughout the legal process.
Car Rental in the United States
Millions of people rent vehicles in the United States each year, generating millions of dollars in revenue. In an industry that reportedly generates billions of dollars each year worldwide, the United States ranks first among countries that have rental car companies doing business. In addition to the many Americans who rent cars from rental car companies in the United States, many people from foreign countries rent vehicles while visiting family or doing business in the U.S.
Car Rental Insurance Coverage
Car renters who permanently live within the United States are usually charged separately for the car rental itself and an insurance policy. In some cases, the coverage a person has on their own car might carry over to a rental car, possibly making it unnecessary for a renter to pay for coverage they already have.
Insurance offered by most rental car companies may include:
- Supplemental Liability: Coverage intended to help protect someone if they injure someone else or damage their property while driving.
- Damage Waiver: For an additional charge, rental car companies may offer a damage waiver to cover the cost of repairing a damaged rental car.
- Personal Effects Coverage: Coverage to help cover personal belongings if they are stolen from the rental car.
- Personal Accident Insurance: Insurance coverage designed to help pay for medical bills in the case of a rental car accident.
In some cases, the renter may or may not need any of these coverages, particularly if they already are insured.
Car Rental Insurance Lawsuit Claims
According to a class action lawsuit filed in December 2017, Enterprise and its affiliates allegedly promised its foreign customers a legitimate excess insurance policy in the amount of $1 million dollars. Defendants in the case, however, failed to fulfill their contractual obligations and did not provide any insurance policy.
According to the class action, Enterprise, Alamo, and other rental car companies, “simply pocket the premiums and decline to provide the consideration for such premiums.” Because individual states require insurers to be licensed, car rental companies do not have the authority to issue an insurance policy to its foreign customers.
How a Car Rental Insurance Lawsuit Can Help
When a company engages in false or misleading advertising of its products, or otherwise commits deceptive trade practices, that company could be liable for any damage that result.
The actions of the defendants could constitute fraud and misrepresentation, breach of contract as well as violations of various state laws, including violations of state consumer protection laws. Although cases so far have been limited to the state of Florida, it is believed that rental car companies are engaging in similar practices nationwide.
Compensation may be sought for:
- Costs incurred by owners, including loss of value, attributable to any wrongful conduct
- Refund of the purchase price paid for affected services
- Damages related to violations of consumer protection acts
- Attorneys’ fees
Foreign customers who have purchased rental car insurance may be eligible to pursue damages and are encouraged to seek the advice of an experienced consumer fraud attorney to learn more about their rights and remedies.
The Time You Have to Pursue a Claim is Limited. Contact Us Today.
For more information, contact Attorney Group. You can fill out the form on this page or contact us by phone or email.
After you contact us, an attorney will follow up to answer questions that you might have. There is no cost or obligation to speak with us, and any information you provide will be kept confidential.
Please note that the law limits the time you have to pursue a claim or file a lawsuit for an injury. If you think you have a case, you should not delay taking action.