BajaNomad

MY AUTO ACCIDENT EXPERIENCE IN LA PAZ

Udo - 9-20-2013 at 10:55 AM

I had to fly to Cabo in the early part of September, 2013. So I rented a National car vehicle though their web site. The orice was low, and it was a compact car. I rented it for 5 days at $14.00 U.S. per day.
When I went to the National counter at Cabo airport to sign for the vehicle I rented, a very nicely mannered person helped me out, and walked me though the process of the rental.
Here is where things got somewhat complicated:

Even though my vehicle rental was low, I still had to add liability coverage, which now brought my vehicle daily coverage to about $22.00 U.S. per day...not bad, huh?
When I presented my American Express card for the rental, they wanted to add about $5,000 U.S. hold on the card in case of an accident to cover the car repairs.
I argued (nicely) with the agent. I could not come up with that amount with the AE, or by adding the two other cards that I brought.

SO:

Here is the deal that National came up with:
Pay up front for the daily rate, including liability and collision/damage, and the total fee would be $124.00 paid up front. And that was ALL that was charged to my AE card!
I thought that the fees were reasonable.

Now for the rest of the story:

While driving to Palermo's restaurant on the La Paz Malecón, a transit bus rear ended my car!



another view of the damage:


The distraught bus driver:



So I ended up at the police station for three hours waiting to fill out paperwork. I also called National, and they said they would have another car waiting for me at their malecon location.
We traded cars, and no hassles!!!
Returned the new car to Cabo airport...no hassles!!!

Happy ending.
The gentleman gave me his personal phone number and to give him a call next time I wish to rent a car at the airport, instead of going through the web site.
U2U me if you want his number and name.

woody with a view - 9-20-2013 at 10:59 AM

very nice!

edm1 - 9-20-2013 at 11:03 AM

What the hell was the $5000 repair hold up front for? They wanted you to self-insure? Just by their attempt to scam you makes stay away from them.

Glad you ended at the better end of the deal!

Barry A. - 9-20-2013 at 11:12 AM

Quote:
Originally posted by edm1
What the hell was the $5000 repair hold up front for? They wanted you to self-insure? Just by their attempt to scam you makes stay away from them.

Glad you ended at the better end of the deal!


Conversely, I see no "scam"-------just good business. Somebody other than the Rental Company normally has to pay for accidents and repairs------and in the end they shared the risk with you.

Glad this turned out well for you, Udo.

Barry

Udo - 9-20-2013 at 11:19 AM

Just as a clarification point...

I did not feel scammed, because I had done the same thing (the up-front $5,000 deposit, or credit hold on my card), and in the end, they always refunded and tore up the second credit hold. I was never double charged.
Just that this time, my AE card had a balance on it and could not come up with the $5,000 in credit hold. If my AE card would have had the ability for the "hold", I would have done it again.
This time things turned out differently, and in future occasions I will pay the lower "UP FRONT" total fees.

David K - 9-20-2013 at 11:23 AM

Bummer, but at least you were in La Paz and not out in the boonies!

DENNIS - 9-20-2013 at 11:38 AM

Quote:
Originally posted by Udo




I can just hear this guy, "Yeah...I rear-ended you, but it's your fault, gringo"

David K - 9-20-2013 at 11:40 AM

Ahhh Mexico... the Amigo Country! :lol:

motoged - 9-20-2013 at 11:52 AM

Udo,
Glad you were not injured :saint:

Good story....good outcome.....good info !

edm1 - 9-20-2013 at 11:55 AM

Quote:
Originally posted by Udo
Just as a clarification point...

I did not feel scammed, because I had done the same thing (the up-front $5,000 deposit, or credit hold on my card), and in the end, they always refunded and tore up the second credit hold. I was never double charged.
Just that this time, my AE card had a balance on it and could not come up with the $5,000 in credit hold. If my AE card would have had the ability for the "hold", I would have done it again.
This time things turned out differently, and in future occasions I will pay the lower "UP FRONT" total fees.


Really? I didn't know that's the way they work. Still I would be reluctant giving $5000 of my Amex, rental hold or not.

motoged - 9-20-2013 at 12:17 PM

This topic has appeared MANY times here before.

Folks, the credit card you hold might pay for Collision/Damage and Comprehensive. coverage....you just pay rental company for basic liability....and the credit card company absorbs the repair costs, not you.

Geoff (BajaBound), can you clarify this from your perspective?

Udo - 9-20-2013 at 02:28 PM

That's the point of the story.
Quote:
Originally posted by motoged
Udo,
Glad you were not injured :saint:

Good story....good outcome.....good info !

Udo - 9-20-2013 at 02:31 PM

Quote:
According to my AE customer agreement...(I have the COSTCO version of the AE card), AE pays for the liability portion of the insurance, not the vehicle damages.


quote]Originally posted by motoged
This topic has appeared MANY times here before.

Folks, the credit card you hold might pay for Collision/Damage and Comprehensive. coverage....you just pay rental company for basic liability....and the credit card company absorbs the repair costs, not you.

Geoff (BajaBound), can you clarify this from your perspective?

dtutko1 - 9-20-2013 at 02:32 PM

Clean living once more rewarded!

motoged - 9-20-2013 at 03:18 PM

Quote:
Originally posted by Udo
According to my AE customer agreement...(I have the COSTCO version of the AE card), AE pays for the liability portion of the insurance, not the vehicle damages.


My VISA cards are the opposite....and their head office in Toronto e-mailed me a policy letter confirming that. So, I don't mind paying the basic liability....and don't mind VISA paying for any dents :biggrin:

This from the AE web site

durrelllrobert - 9-20-2013 at 07:42 PM

www.americanexpress.com/carrentalinsurance

CAR RENTAL LOSS AND DAMAGE INSURANCE¹RENT WITH ADDED PEACE OF MIND

With Car Rental Loss and Damage Insurance1, you can focus more on where you're going.

• Use Your Eligible Card - Reserve and pay for the entire eligible rental car on your eligible Card, and you can be covered if the car is damaged or stolen.

• Say "No Thanks"– Decline the collision damage waiver (CDW) offered by the Commercial Car Rental Company.

• Enjoy the Ride – Coverage applies to the first 30 consecutive days of most car rentals and there is no deductible. Worldwide Coverage² is not available for vehicles rented in Australia, Ireland, Israel, Italy, Jamaica and New Zealand nor Small Business Cardmembers except for Business Platinum® Card
__________________________________________________
When you agree to purchase insurance from the car rental agency you do not get a copy of the insurance policy because it does not exist. They self insure meaning that they are betting you will not have an accident and if you don't the agency just pockets the entire amount paid. company

motoged - 9-20-2013 at 08:29 PM

So, Udo "lives clean", just has the wrong card...:biggrin:

tripledigitken - 9-20-2013 at 08:35 PM

If National wanted to put a $5,000 hold on my card, I would walk to the next rental car company.

DianaT - 9-21-2013 at 07:59 AM

Definitely glad that your experience ended well --- expect it is never fun to be hit!

Curious, however, if that $5000.00 hold is common with other companies as well???

Udo - 9-21-2013 at 08:12 AM

To answer Diana's and Ken's question...

I have rented vehicles from other companies in Cabo. They all have the same $5,000 "deposit for vehicle damage hold".
Last year I joined the National Emerald club for the free rental days program...however, the program does not apply in Mexico, only at US locations (which I found out about three months ago.
In Cabo, National has treated me the best of all the agencies. If you want the list of agencies not to rent from, I'll give you the list. Where I got hurt was when my flight to Cabo was canceled and I was a day late for the rental.

DianaT - 9-21-2013 at 08:16 AM

Quote:
Originally posted by Udo
To answer Diana's and Ken's question...

I have rented vehicles from other companies in Cabo. They all have the same $5,000 "deposit for vehicle damage hold".
Last year I joined the National Emerald club for the free rental days program...however, the program does not apply in Mexico, only at US locations (which I found out about three months ago.
In Cabo, National has treated me the best of all the agencies. If you want the list of agencies not to rent from, I'll give you the list. Where I got hurt was when my flight to Cabo was canceled and I was a day late for the rental.


Thanks Udo, I wonder if it is the same on the mainland. We have always traveled by car or bus but are thinking about renting a car on the mainland. Same companies, so I imagine it is the same??

Did they charge for that day considering why you were late?

tripledigitken - 9-21-2013 at 11:28 AM

Udo,

The last time I rented a car in Mexico was about 10 years ago and it was on the mainland. I really don't think I had to front $5k, but I could have. After looking at a few sites it appears it is the custom for rental car companies in Mexico to require the deposit ($3k-$5k).

However, as many policies in Mexico are, they are negotiable.

Your situation, which could have taken an ugly course, turned out well.

Ken

Udo - 9-21-2013 at 12:41 PM

Charging me for the late day would have been better than them tearing up the old reservation and having to start over again.
Then they really gave me the screws...The company was budget and their location was at least a long block away from any other company, or I would have walked.
Seems that many businesses in Mexico feel that they can take advantage of a situation and make whatever money they can, rather than build a rapport with the customer for future times.

In my instance, National was willing to go the extra mile to keep me as a repeat customer.
Quote:
Originally posted by DianaT
Quote:
Originally posted by Udo
To answer Diana's and Ken's question...

I have rented vehicles from other companies in Cabo. They all have the same $5,000 "deposit for vehicle damage hold".
Last year I joined the National Emerald club for the free rental days program...however, the program does not apply in Mexico, only at US locations (which I found out about three months ago.
In Cabo, National has treated me the best of all the agencies. If you want the list of agencies not to rent from, I'll give you the list. Where I got hurt was when my flight to Cabo was canceled and I was a day late for the rental.


Thanks Udo, I wonder if it is the same on the mainland. We have always traveled by car or bus but are thinking about renting a car on the mainland. Same companies, so I imagine it is the same??

Did they charge for that day considering why you were late?

vandenberg - 9-21-2013 at 01:19 PM

About 4 years ago we rented a car in Guadalajara for 2 weeks through our hotel, the Francis, and no deposit was asked for.
If my memory is correct, the total for the 2 weeks was around $300.00 US. Was a very small Chevy, but it served its purpose.
Traveled for those 2 weeks through the interior, visiting the old colonial cities.

durrelllrobert - 9-21-2013 at 04:30 PM

Quote:
Originally posted by vandenberg
About 4 years ago we rented a car in Guadalajara for 2 weeks through our hotel, the Francis, and no deposit was asked for.
If my memory is correct, the total for the 2 weeks was around $300.00 US. Was a very small Chevy, but it served its purpose.
Traveled for those 2 weeks through the interior, visiting the old colonial cities.
I've stayed at various resorts all over Mexico and whenever I got cabin fever I've rented a car (some real Junkers) at the hotel desk with never a problem. But these are not rental car agencies/ franchises.

DianaT - 9-21-2013 at 04:52 PM

Quote:
Originally posted by vandenberg
About 4 years ago we rented a car in Guadalajara for 2 weeks through our hotel, the Francis, and no deposit was asked for.
If my memory is correct, the total for the 2 weeks was around $300.00 US. Was a very small Chevy, but it served its purpose.
Traveled for those 2 weeks through the interior, visiting the old colonial cities.


Thanks to everyone for answering my question which may have qualified as a small hijack --- opps. :biggrin:

We are just so anxious to get back to the heart of Mexico.

Bubba - 9-22-2013 at 10:56 AM

Quote:
Originally posted by DENNIS
Quote:
Originally posted by Udo




I can just hear this guy, "Yeah...I rear-ended you, but it's your fault, gringo"


And the lady behind him finds it all quite funny.

Udo - 9-22-2013 at 11:31 AM

You have an eye for details, huh?

durrelllrobert - 9-22-2013 at 12:01 PM

I just looked at the Payless rental agency site in Cabo and this is what they say:
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&a...


Personal Accident Insurance/Effects Coverage
PAC/PAI- $4.95 per day plus applicable taxes
Personal Accident Coverage/Personal Accident Insurance: By electing to purchase optional PAC/PAI coverage at the designated daily rate, the renter and any of his passengers are insured while occupying the rental vehicle subject to all provisions of the group policy. PAC/PAI cost may vary by location.

Grace Period
Rental is based on a 24-hour period. The client receives a 59-minute grace period. If he/she keeps the vehicle after this time, an hourly rate will apply from minute one.

Hold Policy
It is the policy of Payless to have the confirmed vehicle available during normal business hours for the calendar day of the scheduled arrival.

BajaLuna - 9-22-2013 at 03:10 PM

glad it for turned out ok, UDO! And glad you all weren't hurt! It sure could have been a lot worse.

We rented a car this past Spring from Fox car rental in Loreto and had to put down 500.00 deposit. We did shop around, at first their estimate was almost a grand for 8 days but we were able to get them down, and it ended up costing us 600.00 for a rental car for 8 days. OUCH! The insurance was through the roof, but the daily cost of the car was what you pay just about everywhere, but whew they got us on the insurance!

OH and also, our agreement and contract was in US dollars, but when we settled up at the airport upon returning the car, they billed it in pesos, and we ended up paying more because of the inflated exchange rate that they used. So in otherwards they quoted us and we agreed to the amount of the price in USD but they billed us in pesos. We should have argued with them more, but when you are about to catch your plane, and they are going to take it out of your account anyways no matter what beef you have with it..what can you do? Trust me I was not a happy camper about any of our experience. We went to our bank, but they said, so sorry Charlie, "it is what it is, you signed the contract"!

I agree, some companies don't care about building a business based on repeat customers. Glad National had a good outcome for you!

Udo - 9-22-2013 at 03:27 PM

I agree with you, Krystal, about being billed in Pesos. But I feel I was being treated fairly on the exchange of $13.10 m.n. per USD. Pretty close to what the current exchange was at the time.

Our daily rate, including the full insurance for a skate board-sized car, was $24.30 in USD. But there was also the VAT for the airport rental, about another $2.00+- US per day.

As far as I am concerned, National is now my top rental in Baja.