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After our Avis car rental was stolen, we got a $3,600 bill. Help!

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Michelle Couch-Friedman

Consumer reporter and ombudsman

After an enjoyable mid-winter getaway to Clearwater, Florida, Cynthia Sutherlin intended to return her Avis car rental and fly home. But the night before she was set to leave, a gang of thieves threw a wrench in that plan. Those bad guys brazenly stole her rental car from the valet at the luxury resort where she was staying. 

In the morning, Sutherlin checked out of the hotel, handed over her valet ticket, and waited for her rental car. And waited.

Finally, a confused employee told her that he couldn’t find the vehicle she’d paid $40 a night to park there. 

With just hours before her flight was set to take off, the resort’s general manager appeared on the scene. He apologized profusely and admitted that it appeared someone had stolen the rental car from their lot. But no worries, he said. The hotel would deliver Sutherlin and her husband Robert to the airport and he’d handle the theft report with the police and Avis.

The couple flew home, relieved that the stolen rental car was not their responsibility. 

That relief was short-lived. The Sutherlins were soon to find out that Avis definitely did consider the stolen rental car their responsibility. That message was received from the agency in the form of a $3,600 bill.

It’s months later and the Sutherlins are desperate. The police located the undamaged vehicle and returned it to Avis on the same day it was stolen. But Avis inexplicably took the rental car out of service for five weeks, billing the Sutherlins $3,600 for loss of use. That little detail led the insurance company to deny the claim. 

With nowhere else to turn, they hope Consumer Rescue can investigate and make this bill go away.

Can we do it?

Flying south for a short winter break

Last February, the Sutherlins decided to fly south for a short winter break from their home in Michigan. They would visit the Gulf Coast of Florida and stay at the pricey oceanfront Sandpearl Resort in Clearwater. 

The Avis rental car was stolen from the luxury hotel's valet parking, The location of the rental car theft in Clearwater, Thieves stole the Avis vehicle from the Sandpearl Resort
The Sutherlins chose the Sandpearl Resort in Clearwater, Florida, for their winter getaway. Valet parking for their Avis car rental, which would soon be stolen from the luxury hotel, cost $40 per day.

Advertised as an “elegant escape,” the beautiful Sandpearl sports a pristine sandy beach, upscale restaurants, pool, gym and impressive spa. With the mandatory $35 daily resort fee, taxes, and valet, standard rooms at the Sandpearl exceed $400 per night. 

The hotel had everything the couple wanted for their three-day reprieve from the harsh Michigan winter. 

Unfortunately, it also appears to have had, at least during this couple’s stay, a highly unwanted feature: severe security problems.  

Is this rental car stolen or just misplaced?

The couple had a lovely stay at the opulent Sandpearl Resort and didn’t want their getaway to end. The hotel exceeded their expectations in every way. Which makes what happened on the last day particularly hard to believe. 

While we were checking out of the hotel, the valet went to pull up the car for us. He came back and told us he could not find the vehicle. [The assistant general manager] was very helpful. He even comped one night of the stay as compensation for our troubles and my wife losing her jacket in the vehicle. He arranged for a ride to the airport and advised they would handle the insurance claim with Avis if the rental car was stolen or damaged. He said they would keep looking for the vehicle. 

It wasn’t until two weeks later that we found out the hotel had confirmed [through security video] that three individuals had come into the valet’s garage and drove away in the vehicle. It seemed they had somehow made a copy of the key fob.

Robert Sutherlin, Avis Budget customer

The hotel’s police report filed on the same day the Sutherlins flew home shows that the rental car was immediately confirmed as stolen. The thieves had been recorded on the resort’s security camera. Later that evening, the police recovered the undamaged vehicle miles away and released it to Avis. Three suspects were also identified and arrested. 

It’s unclear why the Sutherlins weren’t informed of the car’s fate sooner, but that delay only complicated things further. Cynthia was unaware, but her rental contract was still open. And Avis was billing her daily for a variety of fees associated with the stolen rental car. 

It would be five weeks before she learned that she had made a grave mistake to assume the missing vehicle was no longer her responsibility.

According to Avis, she was entirely responsible.

Why won’t Avis close the contract on the stolen rental car?

In April, as the strange incident at the end of their trip had drifted out of their minds, a letter from Avis snapped it right back. The car rental company expected Cynthia to pay thousands of dollars for its loss of use of the stolen vehicle.

After they got over the initial shock, the Sutherlins forwarded the letter to their insurance carrier through American Express. Assuming that insurance would take care of everything from there, they soon got the most unpleasant shock of all.

Amex wasn’t going to pay for the stolen vehicle. It rejected the Sutherlins’ claim, stating that the Avis rental contract was still open. But more importantly, the adjuster explained their policy doesn’t cover loss of use. According to his report, the couple would be responsible for paying the entire bill. 

Reading through the policy, the Sutherlins were convinced that loss of use was, in fact, a covered fee. They filed an appeal with American Express and initially got some hopeful news. The supervisor agreed and overruled the original adjuster’s determination, but he, too, was unwilling to approve the claim. This senior adjuster had other reasons for allowing the case to hang in limbo. 

That’s when Robert Sutherlin had enough of what he called a frustrating, emotional game of “ping pong” between Avis and American Express. Having found multiple articles covering cases our advocacy team has tackled, he hoped we might be able to successfully take on their complicated battle, too. 

With his fingers crossed, Sutherlin sent his request for help to the Consumer Rescue team

Asking Consumer Rescue to investigate this car rental fiasco

Avis Car Rental sent Cynthia a demand letter for $3,649 for the stolen vehicle, which was mostly for loss-of-use. That’s when we learned that even though the car wasn’t damaged during the theft, it was out of service for five weeks. Amex insurance refused to pay the claim because there was no explanation as to why the car was removed from service for all that time. Additionally, the rental car contract is still open!  

We don’t know what to do. Avis has already billed our credit card for the entire amount. If Amex doesn’t approve the claim and Avis doesn’t adjust the bill we’re on the hook for thousands of dollars for something we shouldn’t be responsible for. 

Can you help us?

Robert Sutherlin to Consumer Rescue

Looking over the Sutherlins’ paper trail, I could see that they had initially made some common consumer mistakes. By flying home without filing a police report and insisting that Avis close their car rental contract, they had left Cynthia’s liability door open. Of course, by now, the couple was already painfully aware of that fact. 

By the time Sutherlin’s request for help landed on my desk, he had diligently documented his mostly unsuccessful attempts to resolve the problem for over four months. He had created illustrated charts, written detailed explanations, and lengthy opinionated narratives in his vigorous push to either get Avis to drop the sky-high invoice or for Amex to approve the claim.

To this consumer advocate, his efforts were admirable. 

With Avis showing no signs of dropping the charges, Sutherlin refocused his attention on getting insurance to cover the bill. For that to happen, Amex needed two things to re-evaluate the claim: 

  • Proof that Avis had finally closed the contract.
  • An itemized demand letter that contained an explanation for why the undamaged rental car had been removed from service for five weeks after it was stolen.

My impression was that Avis would be the place to start. After all, both of the documents on the list would need to come from the car rental company. Only after we had those vital pieces of information would Amex reconsider the claim.

Asking Avis about the status of this stolen rental car

Our executive contact at Avis is always prompt in responding to our team’s inquiries. 

In Sutherlin’s case, I wasn’t sure what was preventing Avis from providing the requested information to the insurance company. But I knew the clock was ticking. Insurance companies have time limits in which all requested documents must be received and processed. I wanted to make sure Amex received all the required details before time ran out for the couple 

But this case would prove a bit more difficult than others. After my first inquiry to Avis about the Sutherlins’ case, our executive asked the local team to address the outstanding requests from Amex. 

Four weeks later, Sutherlin reported that there was very little forward movement on his insurance claim. Amex had received confirmation that the contract was finally closed. However, there was still not a satisfactory explanation from Avis for the five week loss of use of the recovered stolen rental car.  

I followed up with Avis.

Hey ***

This case is still outstanding. 

Amex insurance underwriters continue to refuse to pay the bill because it is unclear why this Budget location took the car out of inventory for 5 weeks when (in writing) the police department and [Avis] say that the [although the car was stolen] it wasn’t damaged — and it was a brand new [vehicle] as well.

The bill appears to be completely for “loss of use” with no explanation as to why there was a loss of use… so Amex isn’t going to pay the bill.

Michelle Couch-Friedman, Consumer advocate

Then finally came some good news.

Amex partially approves the insurance claim

Shortly after, the Sutherlins got the first piece of good news in their battle with Avis. Now Amex would approve most, but not all, of the charges associated with the stolen rental car. 

The balance of the claim had to do with the original three day rental, taxes, fees and a $680 late charge.

Robert found the late charge to be particularly hard to swallow. 

That doesn’t seem fair that we should have to pay a late charge. Obviously we couldn’t return the car on time since thieves stole it and then Avis had it in [its] possession shortly after that. Would you agree, Michelle?

Robert to Consumer Rescue

I certainly did agree and so I asked our executive contact at Avis to re-evaluate the charges.

Hi ***

We’ve made a lot of progress on this strange case!

Your team provided the information Amex needed to cover the loss-of-use fees. But they rejected the $680 “Late Fee,” which seems to be because the Loss of Use already covers any time that the car was out of commission AND the car was discovered by the police on the same day it went missing. It’s unclear why Avis would charge an additional late fee as well. 

Could your team have a look at that particular charge and see if that is a redundant fee that should be removed?     Thank you!!  😃🚗   Michelle

Finally, we can successfully put this car rental fiasco to rest

Within an hour of my email, but five months after this frustrating struggle kicked-off with the shocking theft of the rental car from the luxury resort, the Sutherlins’ battle came to a successful conclusion.

Hi Michelle

I refunded the late fee billed on the rental based on the details you provided.    

Avis Budget spokesperson

Of course, the Sutherlins were greatly relieved to finally and truly be able to put this car rental fiasco to rest.

Hello Michelle, 

We really appreciate your help. 

Thank you for helping us and other consumers!!

The Sutherlins

You’re very welcome! This is exactly why Consumer Rescue exists — to defend consumers when they’ve exhausted all other avenues. We can reach people you can’t. And we’re happy to do it!!

Tips: What to do before and after your rental car is stolen

When you take the wheel of a rental car and drive off, you are accepting full responsibility for that automobile. That means that anything that happens to the vehicle while your contract is open, you will be expected to pay for.  

Anything. And I do mean anything.

So it’s critical that you always make absolutely certain that you have a comprehensive car insurance plan in place before taking the keys. If you don’t, none of the following tips will protect you against the expensive repercussions of having your rental car stolen. (See what happened to a young traveler who was unwittingly driving a rental car with no insurance.)

Buy a Comprehensive Damage Waiver (CDW) policy from the car rental company

Travelers who want to be fully protected and don’t want to deal with the struggles that often encompass an insurance claim associated with the loss or damage of their rental car may want to consider buying the Comprehensive Damage Waiver (CDW) product sold by car rental companies. 

Note: Sometimes this product is called Loss Damage Waiver (LDW).

If you buy CDW/LDW from the car rental company and the vehicle is stolen, the agency will take care of nearly all the claim details. The coverage can be expensive though, depending on the length of the rental, as you’ll pay for it by the day. But read through some of the car rental fiascos here on Consumer Rescue and you might just decide it’s worth it for the peace of mind. 

Here’s what you need to do if a thief steals your rental car.

Report the theft to the car rental company

Unless the vehicle has been stolen in a hijack situation and you’re in immediate danger, your first call should be to the car rental company. Depending on the agency and location, there may be a GPS tracker on the rental car. That information can help determine whether or not the car is actually stolen or if a valet (or customer) has simply misplaced it. In either case, you should ask for additional instructions from the car rental agency so that you do whatever you can do to mitigate your monetary loss.  If you’ve purchased CDW policy, that protection can be activated at that time. 

File a stolen car rental police report

Just as if your own car was stolen, you should never abandon your rental if it goes missing. It is imperative that you take the time to file a police report even if it means that you miss your flight home. Remember, you are responsible for that vehicle until the car rental company closes out the contract. You must do your part to help the car rental company recover its property as quickly as possible. 

You will also need that police report to begin the process of filing an insurance claim, so it’s critical that you not skip this step.(See what can happen if you don’t: His rental car crashed into the sea. Now he’s in a $27,825 insurance nightmare)

Alert your car insurance company that the vehicle was stolen

As soon as you become aware that your rental car has been stolen, you must alert your insurance company. They also will want to mitigate the cost of the theft and so it’s important to allow your insurance provider to get involved in the investigation ASAP. Delays in reporting the loss can cause delays in your claim being paid and can even, in some circumstances, invalidate your car insurance coverage.  

Provide all the requested information in a timely manner

After you’ve filed your claim, the next step is to provide all the documents required for approval. This step can be tedious and time-consuming and many car rental customers have found this process nearly impossible to navigate. In today’s world of automated customer service, the initial claims process is often handled by artificial intelligence. A human may not even review your case until every requested document is noted to have been received.

And unfortunately, we know that sometimes the evidence that is being requested may be impossible to obtain… like repair bills for a stolen vehicle that was never recovered, as I reported on last year over at The Points Guy. 

If you hit that type of unyielding roadblock, you may need the assistance of a skilled advocacy team. SO…

Ask Consumer Rescue for help

The aftermath of having your rental car stolen can be traumatizing, expensive and confusing. But it doesn’t have to be. 

As the Sutherlins did, if you’re in a similar situation, you can send your request for help to our consumer advocacy team. If, after reviewing the details, we find that the facts are on your side, we’ll be happy to investigate and mediate your case. Our services are always fast, friendly, and always free. (Michelle Couch-Friedman, Founder and CEO of Consumer Rescue)

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Michelle Couch-Friedman

Michelle Couch-Friedman is the founder and CEO of Consumer Rescue. She is a consumer advocate, reporter, travel writer, mediator, and licensed psychotherapist. Michelle is also the travel ombudsman columnist for The Points Guy, a contributing author at Fodor's Travel and is the former executive director of the nonprofit Elliott Advocacy. During her six years managing that organization, she resolved thousands of cases for troubled travelers and other consumers. You can read hundreds of 5-star reviews Michelle earned during her service to the nonprofit on Great Nonprofits. Michelle is a public speaker, and her expert guidance has been cited in the Washington Post, MarketWatch, Consumer Reports, Travel & Leisure, the Wall Street Journal, Newsweek, Popular Science, CNN, CNBC, Boston Globe, CBS News, National Geographic, Travel Weekly, Reader's Digest and more. You might even catch Michelle on TV reporting on a situation. :) Professionally, Michelle is a member of the Society of American Travel Writers (SATW) and the American Society of Journalists and Authors (asja). Today, she continues to spend as much time as possible fiercely defending consumers and traveling the world with her family. Contact her at Michelle Couch-Friedman or on Linkedin, Twitter or Facebook.
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KJ

Great resolution but I sure wish we knew WHY Avis put the car out of commission! I surprise AMEX agreed to pay it but glad for the consumers.

Michelle Couch-Friedman

Me, too. I'm not 100% sure, but I suspect it might have something to do with the court case against the criminals. Maybe they needed to keep the car in impound. The court case went to trial last month.

copyace

I'm glad everything was resolved, but Michelle, wasn't Sandpearl Resort also liable in some respect? They charged for valet services and had the key in their possession. Why wasn't a claim made against their insurance company?

KJ

I agree! But I bet that claim ticket says they are not responsible. I wonder if it was an inside job…

Michelle Couch-Friedman

Yes, the claim ticket does say the hotel isn't responsible for lost or damaged items… I assume that covers the actual car as well! Of course, that might not hold up in court…

copyace

That kind of wording on the claim ticket doesn’t necessarily hold water — most parking providers carry general liability insurance, and even if Sandpearl uses a third party company as their valet provider they can’t escape just by pointing fingers.

Michelle Couch-Friedman

I really don’t know for sure. But I was planning ahead… if Amex didn’t cover this I thought the hotel should.

Tim

Before getting the LDW/CDW, check with your credit card company–they might have that coverage or able to provide it cheaper. For instance, the AmEx I have does have an car rental insurance that covers just about everything and is one price per rental that is cheaper than the rental car company for rentals that are longer than one day.

Ben

Apparently they had that AmEx coverage. A lot of good it did them.

Michelle Couch-Friedman

While it is true that CDW is included in some premium credit card memberships, the traveler will run into the same problem as this couple with the third-party insurance provider… there are often a lot of hoops to jump to get the claims approved. I've written about those struggles before, both here and over at The Points Guy.

DChamp56

Curious, would you have missed your flight, to file the stolen car paperwork with the auto rental company, or fly home, and call and let them know there?
Also, the hotel with the poor security could/should have taken care of some part of the charges.
All in all, great job Michelle! You really came through for them!

Michelle Couch-Friedman

I would have missed the flight and filed the paperwork. The car is completely my responsibility until the agency closes out the contract, so it may be inconvenient, but a traveler should never just walk away from an unknown situation when a rental car is in their name.