Law Office Report - December 2009
"Before and After" Practice
Attorney Thomas W. BertzFor those of you who rent cars, there is a growing industry-wide car rental practice of which you should be aware. The practice is called “Before & After.” When rental cars are severely damaged, many rental companies no longer repair the damaged vehicles because they are concerned about potential liability if they put the cars back in their fleet. In those cases, when there is severe damage to the vehicles, they determine the “Before” value of the damaged cars at the time they are rented, and then they sell the damaged cars at a salvage sale which is the “After” value. The renters are billed for the difference!
Prior to the “Before & After” practice, most of the renters’ own auto insurance policies covered the cost for the repairs, however, they will not cover the difference between the “Before & After” values. As a car renter, what should you do? The answer is simple; purchase the “Collision Damage Waiver” from the rental company so that you are covered. It may be somewhat expensive, but it is better than to go self-insured and be exposed to a liability that can approach $10,000 or more.