'Dodgy' rental car practices exposed in Choice study



This is a real problem, with lots of ripoffs. Europcar is not mentioned below but seems to have been the biggest cause of complaints that I have seen. I advise people to use Hertz, as they seem like a well-conducted business in my experience

THE "ludicrous" fees and policies of some of the nation's car hire companies have come under the spotlight in a new report.

Consumer watchdog Choice claims to have exposed a variety of “unfair” practices in its report, which analysed the contracts of car rental firms Avis, Bayswater, Budget, East Coast Car Rentals, Europcar, Hertz, Redspot and Thrifty.

Excess reduction policies, fees for not-at-fault accidents and “premium location” surcharges were among the fees and policies singled out as being "unfair".

One of the main offenders, East Coast Car Rentals, has come under fire for allegedly including a clause that essentially means they can rent out a car that doesn't work.

"With an insurance policy riddled with exceptions, a huge administrative surcharge and what seems like an illegal attempt at eroding consumers’ legal rights, East Coast Car Rentals has some of the nastiest fine print out there," the Choice report said.

Choice said it has reported the offending clause to the Australian Competition and Consumer Commission.

Meanwhile, Bayswater was criticised for its policy of charging travellers for not-at-fault accidents, even when the other driver has been located. "Their rates are some of the lowest, but we are unimpressed with their policy of charging consumers for not-at-fault accidents,” the report said. "Where the other driver is located, any costs would already be covered by their insurance, so it’s double-dipping."

The review comes at a time when customers are being driven mad by hire car rip-offs. A recent survey of 2500 Australians by consumer ratings agency Canstar Blue found that excessive fees and poor service are a major cause of frustration. The Choice study has added weight to these consumer complaints, finding that while car hire may seem cheap at first, hidden costs can add up quickly.

Excess reduction fees were singled out as one of the most expensive “optional” extras. The report said travellers seeking to avoid being hit with a hefty fee in the event of an accident are placed in a no-win situation. Standard excesses were said to be “unduly high”, however, the excess reduction policies themselves can add up to $40 a day to a car renter’s bill.

“Consumers should be aware of insurance exclusions. We found a number of companies charging up to $2200 on top of existing excesses for single vehicle accidents,” Choice spokeswoman Ingrid Just said. “Other companies only conditionally cover collisions with animals or those incurred whilst reversing.”

Other “unfair” practices in the report included customers being charged extra to pick up a car from a “premium location” such as an airport and fees for e-tag hire, which can result in consumers being forced to spend a lot more than expected. “Paying an extra 22 per cent on the total cost per rental simply because you pick up your car at an airport is ludicrous as is being charged for an e-tag even if you don’t use it on a toll road,” Ms Just said.

One car rental company was even busted charging a 9.95 per cent administration fee on the total cost of the rental.

Bayswater and East Coast Car Rentals have been contacted for comment.

Choice’s tips to avoid being stung by a dodgy car rental contract:

• Read contract terms and conditions carefully before signing

• Photograph your car rental vehicle at the beginning and end of hire

• Return your car during opening hours and insisting on an immediate inspection

• Familiarise yourself with hidden fees and charges by doing a run through the company’s online booking system

• Fill up the vehicle as close as possible to the drop off point and keep the receipt to avoid a refuelling fee

• Take out domestic travel insurance that covers rental car excess instead of paying car hire companies to reduce your liability

• If driving in the Eastern states, look into your e-tag options in advance – in many cases it is cheaper to buy a visitor’s pass or pay as you go than to rent an e-tag with your car

• Avoid one way fees, which are charged by most companies, by hiring from and returning to the same location

SOURCE

1 comment:

  1. People who choose to go for services offered by Hertz car rental wouldn't be frustrated at all since the company offers assistance from the time you got the car up until you surrender it.

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