Rental-car fees and insurance annoying
people’s bottoms. Cash often attaches to sunshine and it’s hard to see your own bias.
9. Closed versus communicative: ‘‘It’s none of your business’’ is a fine response to an inquisitive five-year-old. When it comes to money and adult families, confidentiality is not a God-given right. If you are asking for money, your siblings deserve to know. Remarkably, one UK survey shows almost a third of 18 to 54-year-olds ask their parents for cash, and just 9 per cent feel guilty.
10. Legacy versus jealousy: Putting any financial skew on the contents of your will is a one-way road to jealousy. You might think your reasons are solid, but it could be the nail in the coffin of your children’s relationship with each other. Being judged by a parent for being too rich, too needy or too irresponsible is one heck of a parting statement.
❚ Janine Starks is a financial commentator with expertise in banking, personal finance and funds management. Opinions in this column represent her personal views. They are general in nature and are not a recommendation, opinion or guidance to any individuals in relation to acquiring or disposing of a financial product. Readers should not rely on these opinions and should always seek specific independent financial advice appropriate to their own individual circumstances. Phil Rumble thought he had booked a rental car for $48.50 a day for a trip to Hawke’s Bay.
But when he and his partner went to pick up the vehicle, they discovered that this price was just the beginning. There was another $30 a day for airport parking fees, another 15 per cent for GST and they would have to pay $40 each day if they wanted a no-excess insurance policy.
When they opted to skip the fee and stick with the $3500 excess, Rumble was warned that if there were scratches on the car when it was returned to Hertz, he would be expected to pay.
‘‘It feels like I had the wool pulled over my eyes. It just seems very on the nose to keep the initial price down but then they suddenly sting you after they’ve got your card details,’’ he said.
Hertz has been approached for comment.
A survey of car rental companies reveals that Rumble’s experience is not unique.
Hertz’s website says it charges $40.14 a day for a no-excess insurance option for economygrade cars.
Apex charges $20 a day for no excess for a mid-size sedan hired for a week, Budget charges either $25 or $28 a day to reduce excess to $300, Go Rental charges $21 a day for a small car for a week with no excess and Jucy has a daily charge of $17 on a compact car for no excess. Airport fees are also common.
Consumer NZ spokeswoman Jessica Wilson said Rumble’s was a common complaint.
‘‘The standard excess charged by rental car companies can be more than $3000, 10 times what you’d pay if you had to make an insurance claim for your own car,’’ she said.
And a driver who had more than one accident might have to pay an excess for each ding or scratch.
Even when drivers were not at fault in an accident they would have to pay the excess and could only hope that if the cost was recovered from the other driver or the other driver’s insurance company, they could be reimbursed.
‘‘If you want to reduce the excess, you have to pay the rental company extra. But the cost of doing this is often not clear at the time you book.
‘‘Rental companies should be disclosing the cost alongside the headline price so consumers can make an informed decision and compare what companies are charging.’’
Tim Alpe, head of Jucy, said there were no industry rules. ‘‘Each company charges based on what the value of the car is or what they believe it is.’’
Customers would choose to reduce their excess to give them peace of mind, he said. ‘‘You have third-party cover with your rental rate so if you have a crash and it causes damage to another car that’s covered but there’s the excess on the vehicle you’ve rented. [Taking the excess reduction option] takes away the stress of having that liability.’’
Wilson said it could sometimes be cheaper to use travel insurance, instead.
Many travel insurance policies will cover a rental car excess. ‘‘However, amounts vary from $2000 up to $10,000 so you’ll need to check the policy to make sure you’re covered.’’
Consumer found policies that would cover rental car excesses for $26 to $90 a week.
‘‘But there’s one obvious hitch: if the rental vehicle is damaged, you’ll still have to pay the excess upfront to the rental car company and then claim it back from your travel insurer. Do you have a spare $3500 to cover that and the time to run around filing a claim?’’