WeeklySA_AdminCAUTION:Terms may not be favourable in case of accident
By Thuli Zungu
Talk about car rentals and popular Soweto medico Dr Phori Maelane develops palpitations.
This after a car he had rented from Thrifty Car Rental was involved in an accident while being driven by his nephew- leaving him with a huge R30 000 bill to pay for the damage.
The stethoscope master, it would seem, failed to read the fine print. Worse, he claims the agent at Thrifty did not give him a thorough and comprehensive explanation about what he thought was insurance cover when he rented the vehicle.
His nephew was the one to use the vehicle and Maelane had signed as a co-driver, using his credit card.
The R30 000 bill was highly unexpected, more so since Maelane was a regular client for the rental company. In his diagnosis of the problem, Maelane puts the blame squarely on the lack of “transparency” by the car rental company.
The medico thinks there is a need to revisit their terms and conditions, which he says are prejudicial to the customer.
“They just ask you whether or not you want to take an insurance cover and before you know it, you are handed a pen to sign the contract. No one explains these terms and conditions,” he said.
Not one wont to take matters lying down, Maelane put up a brave fight but Thrifty rejected his claim for insurance on the basis that there was no cover.
He also escalated his complaint to the Gauteng Office of Consumer Affairs, only for their investigating officer to be told Thrifty is not an “insurance company”.
What left Maelane with egg on his face was the “belated” explanation that since the rented vehicle was involved in a single vehicle accident (as there was no other vehicle involved), he would be charged double the standard cover, which amounted to R30 000. While it is always advisable for consumers to ask the rental agent to explain in detail what they are covered for and to always read the Rental Agreement terms and conditions, a search by Consumer Eye shows most car hire companies do not offer insurance but they offer responsibility waivers.
These include top five car hire companies in the country, Avis, Europcar, Bidvest, First Car Rental and Hertz, all offer very similar responsibility waivers.
What will come as a sobering though for the consumer is that waivers are not honoured in case of “negligence”, such as driving under the influence of alcohol, reckless and negligent driving etc.
“In case of an accident, this means that the consumer will be held liable for the full amount of damage, and in a case of a write-off, for the full vehicle value” says Melissa Nortjie, marketing and strategy head at First Car Rental.
Consumers will also need to be aware that with regards to collision damage waiver, should the renter be involved in an accident, she/he would be responsible for a specific amount as indicated on the rental agreement.
“This is called drivers responsibility or in insurance terms, it would be an excess,” said Nortjie.
This would include damage to the vehicle or part thereof, or cost of the damage repair, whichever is lower.
Consumers are further warned that in the event they decline the option of a waiver when renting a vehicle, they are liable for the full amount of damages incurred or the specified liability.
Nortjie advises that one surest way of safeguarding yourself is to have own insurance, as some corporate companies do, where they opt for an own cover rate option upon opening an account through a sales representative within a car rental company.
Sadly, for Maelane, the advice came too late.
“I have asked Thrifty whether their insurance only covers accidents where two or multiple cars are involved, they have since not responded,” said a dejected Maelane..
