Johannesburg - Your flight arrives at the airport, you grab your luggage and head straight for the car hire agency. The process seems efficient enough - you have access to a car in an affordable class and you’re mobile.
But are you aware of the risk you’re taking when you provide your card details for that security deposit and sign the paperwork?
I’d think twice before renting a car, from the complaints I've encountered. Security deposits that are later fought over; damages claimed for after the fact; or a sudden, unexpected liability for damages, despite taking out what you thought was insurance. Here are a few such examples:
“I took out insurance and now they want me to pay for R5317.90 in damage. They say the insurance is for when the car is very, very damaged,” said Siza Sopapaza.
“On the phone the lady said they had withheld my R4000 deposit, but my bank balance seemed to be fine. It was a scratch, and I told them about it.”
Turns out there was no such “insurance” - the waiver that Sopapaza took out only provided cover for what is known as a “limited liability”. More on that later.
Irene Allen said: “My husband had to fly down from Joburg to Cape Town on 29 September 2015 to bury his mother. When he got there, he hired a car for the day at the airport from a car rental agency for R148.99 and also paid a R6000 security deposit, which was supposedly not actually taken out of my account, but was on 'holding'.
“Well, they did take it out of my account and despite numerous phone calls from me to them and numerous assurances from them to me that the money had been released, I have not had a refund.”
Then there’s the case of Joe Coates, who hired a Fiat 500 Cabriolet from Europcar and took their “super waiver” option. While stuck in traffic in Durbanville, a “youngster” playing on her phone drove into the back of Coates.
“We pulled over, took her details and drove to the Bellville police station and filed a report. We also contacted Europcar, told them of the incident and said the car was fortunately still driveable so we would hand it in as per our rental agreement. A short while later we had a call from the driver of the car who gave us all the insurance details including contact numbers, contact person and the claim number with OUTsurance.
“On handing in the car on December 1, we furnished Europcar with all of the information that we had and filled out a motor incident report.
But that was far from the end of it.
“On 9 December I received an invoice from Europcar for the additional amount I owed for the ‘excess’, which I immediately e-mailed to OUTsurance.
“On 23 December Europcar debited my credit card in the amount of R 5999.18. This is where the fun starts: the phoning of both Europcar and OUTsurance. The bottom line is that OUTsurance, right from the beginning of January, said they had approved the payment of the claim in full and were just waiting for the final VAT invoice so they could process it. I have absolutely no problem with them at all.”
Unsurprisingly, Coates was displeased with the way Europcar handled the matter - vacillating over invoices, yet the car was already back in their fleet in January: “During one of the calls Europcar told me that the car was repaired and back in the fleet.
“This means that Europcar had given one of the firms that had quoted the go-ahead to repair and had then been invoiced for the completed work. They would have paid this invoice soon after, otherwise the car would not have been released back to them.”
Coates wrote to me at the beginning of June, but back in December he was sent a credit note which stated R4500 “damage super liability” would be paid to him but that he was liable for the assessment and claim admin fees which add up to almost R1500. This despite the fact that Europcar debited the full amount from Coates and OUTsurance had paid them the full claim value.
Coates wrote: “I’m appalled that Europcar has the temerity to charge a ‘service fee’ when they have failed dismally in providing any kind of service.
“If I had not continually phoned your office and finally resorted to getting the media involved, I have no doubt that this entire sorry mess would still be dragging along.”
‘Goodwill gesture’
When I asked why Coates was not being reimbursed for the full amount, a claims administrator said that as a “goodwill gesture” he would now finally be paid all his dues.
I pointed out that this hardly constituted a “goodwill gesture” in light of the shoddy treatment he had received, which is when Judy Karam, the call centre manager and spokeswoman, took over: “Europcar acknowledges and accepts accountability for Mr Coates’ complaint. We believe that the frustration and length of time for resolution could have been avoided and the series of events could have been more efficiently managed.
“Europcar accepts that although there may be reasons for the delay and misunderstanding, it is part of our brand promise and obligation to customers to assist in managing these types of queries to conclusion in as short a time as possible. A summary of the issue and our remediation actions: The third party that crashed into Mr Coates was handed over to a collection agency who only submitted the requested tax invoice to the third party’s insurance company in March 2016.
“This issue has been addressed going forward with both internal staff and the collection agency in question.
“In terms of the refunded amount to Mr Coates, Europcar received the settlement (excluding VAT) on 6 July by the insurance company.
“A Speedpoint transfer was done on the same day by Europcar to Mr Coates for an amount of R5999.18 - this amount included the limited liability and all administration fees accrued. The administration fees are generally charged for, however, due to the length of time it took for this case to be resolved, Europcar waived these charges.
“We have made contact with Mr Coates and have formally apologised for the inconvenience this matter has caused.”
Waivers are not insurance
Fair enough and Coates is satisfied they were improving their systems.
An important fact to consider is that the waivers offered by car hire companies are not comprehensive insurance.
Southern African Vehicle Rental and Leasing Association (Savrala) president Marc Corcoran said: “Our role, as an industry self-regulator, is to ensure that our members comply with Savrala’s code of conduct which requires that members’ processes must always be customer-focused.
“Savrala is unable to assist with complaints from non-Savrala members.
“As an overview, the car rental transaction is quite unique in the tourism/transport sector. An individual with about R1000 on their credit card, for example, could hire a vehicle for a day which may be valued at R200 000.
“The other challenge the industry has is to apply reasonable processes and systems that get a customer into a vehicle as soon as possible without exposing the company to risk, particularly given the value of the asset.
“The Europcar case highlights the need for the re-introduction of compulsory third party insurance.”
Despite the delay in resolving Coates’ matter and the endless frustration, the device-distracted driver had third party insurance.
Had she not, he would have had to absorb the costs.
Wise up. Here’s how!
Don’t sign blindly: Corcoran says whether you book via a call centre or online, always ask for and review the terms and conditions.
“This is important, as certain conditions may differ between members. As this is a very competitive industry, the terms and conditions may well include or exclude certain covers under certain circumstances. Read your T&Cs!”
Inspections: Ensure any damage is noted before you take the car because if you haven't noticed a scratch on the bumper or a crack in the windscreen, you will be held liable.
Know what you're in for:“Southern African Vehicle Rental and Leasing Association does not offer car insurance but waivers,” Corcoran said. “When you accept a collision, theft or damage waiver, you purchase the right to waiver any potential damage/loss to the vehicle to a fixed value, referred to as the liability or responsibility amount.”
Market share: Savrala represents 90 percent of the car hire sector. Members are required to offer upfront and detailed pricing; vehicles that are serviced and inspected to the manufacturer's minimum operating standards; risk protection products and recourse through a complaints procedure. See www.savrala.co.za.
The Star