Accident damage excess on a courtesy car.

[Dr Zoidberg]

When you get a courtesy car from a garage it's usual for there to be a very
large excess - £1500 is not uncommon - in the event of a claim.
Usually they will try and sell you a collision damage waiver for a tenner or
so , so there would be no excess or a much smaller one.

I spotted someone who works for one dealership claiming this recently

"I work as a service advisor for Volkswagen.... the way it works is this...
If you want the car for FREE thats fine you can... we will insure it 100%
fully comp for you no trouble whatsoever and it will cost you nothing.
However the excess on the vehicle is £1500 regardless of amount of damage.
It could just be a small scuff that might happen whilst you leave the car in
a car park. However it will be £1500 I will be taking off your hands to
repair this scratch.
£11.75 (£10+VAT) for the collision damage waver will make that excess £50.
Thats why the option for you to pay is there... not to skin you but to
actually save you money!!!
But of course if you want it free by all means take it free, its at your own
risk with the £1500 excess."

Irrespective of what it says on the form you sign , am I right in thinking
this would be seen as an Unfair Contract Term and completely uninforcable -
trying to charge you a £1500 excess no matter how small any hypothetical
damage was?

Either way I'd be avoiding a dealership like the plague if that's how they
treated customers.

Thanks

[Martin Bonner]

Post by Dr Zoidberg
When you get a courtesy car from a garage it's usual for there to be a very
large excess - £1500 is not uncommon - in the event of a claim.
Usually they will try and sell you a collision damage waiver for a tenner or
so , so there would be no excess or a much smaller one.
I spotted someone who works for one dealership claiming this recently
"However the excess on the vehicle is £1500 regardless of amount of damage.
It could just be a small scuff that might happen whilst you leave the car in
a car park. However it will be £1500 I will be taking off your hands to
repair this scratch."
Irrespective of what it says on the form you sign , am I right in thinking
this would be seen as an Unfair Contract Term and completely uninforcable -
trying to charge you a £1500 excess no matter how small any hypothetical
damage was?

IANAL. I cannot see how it could possibly be seen as fair. However,
his second sentence does not follow from his first. The excess is (of
course) £1500 regardless of damage - however, you only have to pay the
lower of the excess and the actual damage.

Post by Dr Zoidberg
Either way I'd be avoiding a dealership like the plague if that's how they
treated customers.

Quite. (Though it might be worth complaining to the MD and see if
they'll sack the guy.)

[The Todal]

Post by Martin Bonner

Post by Dr Zoidberg
When you get a courtesy car from a garage it's usual for there to be
a very large excess - £1500 is not uncommon - in the event of a
claim.
Usually they will try and sell you a collision damage waiver for a
tenner or so , so there would be no excess or a much smaller one.
I spotted someone who works for one dealership claiming this recently
"However the excess on the vehicle is £1500 regardless of amount of
damage. It could just be a small scuff that might happen whilst you
leave the car in a car park. However it will be £1500 I will be
taking off your hands to repair this scratch."
Irrespective of what it says on the form you sign , am I right in
thinking this would be seen as an Unfair Contract Term and
completely uninforcable - trying to charge you a £1500 excess no
matter how small any hypothetical damage was?

IANAL. I cannot see how it could possibly be seen as fair. However,
his second sentence does not follow from his first. The excess is (of
course) £1500 regardless of damage - however, you only have to pay the
lower of the excess and the actual damage.

Post by Dr Zoidberg
Either way I'd be avoiding a dealership like the plague if that's
how they treated customers.

Quite. (Though it might be worth complaining to the MD and see if
they'll sack the guy.)

I think the guy probably misunderstood the T&Cs of his company. A 1500
pounds excess simply means that the customer pays the first 1500 pounds of
any repair, not that he pays 1500 pounds no matter how trivial the damage.

On the other hand, I have had the misfortune to deal with a courtesy car
company who offer you a courtesy car if your own insurance doesn't provide
one, and they don't offer a collision damage waiver so that at the end of
the rental period they check for any tiny scratches or marks and present you
with a bill for around 500 pounds.

[Nick Odell]

Post by The Todal

Post by Martin Bonner

Post by Dr Zoidberg
When you get a courtesy car from a garage it's usual for there to be
a very large excess - £1500 is not uncommon - in the event of a
claim.
Usually they will try and sell you a collision damage waiver for a
tenner or so , so there would be no excess or a much smaller one.
I spotted someone who works for one dealership claiming this recently
"However the excess on the vehicle is £1500 regardless of amount of
damage. It could just be a small scuff that might happen whilst you
leave the car in a car park. However it will be £1500 I will be
taking off your hands to repair this scratch."
Irrespective of what it says on the form you sign , am I right in
thinking this would be seen as an Unfair Contract Term and
completely uninforcable - trying to charge you a £1500 excess no
matter how small any hypothetical damage was?

IANAL. I cannot see how it could possibly be seen as fair. However,
his second sentence does not follow from his first. The excess is (of
course) £1500 regardless of damage - however, you only have to pay the
lower of the excess and the actual damage.

Post by Dr Zoidberg
Either way I'd be avoiding a dealership like the plague if that's
how they treated customers.

Quite. (Though it might be worth complaining to the MD and see if
they'll sack the guy.)

I think the guy probably misunderstood the T&Cs of his company. A 1500
pounds excess simply means that the customer pays the first 1500 pounds of
any repair, not that he pays 1500 pounds no matter how trivial the damage.
On the other hand, I have had the misfortune to deal with a courtesy car
company who offer you a courtesy car if your own insurance doesn't provide
one, and they don't offer a collision damage waiver so that at the end of
the rental period they check for any tiny scratches or marks and present you
with a bill for around 500 pounds.

I realise that this is an extract from a vehicle hire contract, not a
courtesy car loan but when Arnold Clark say...

"An excess charge will apply in the event of vehicle damage......"

....I'm pretty sure they mean a fixed charge regardless of the cost of
damage done. Especially as they go on to say...

"The excess charge applicable to your rental vehicle is highlighted on
your rental agreement."

Nick

[Monty L]

"Dr Zoidberg" <AlexNOOOO!!!!!!!!@drzoidberg.co.uk> wrote in message news:gemqud$gd4$***@registered.motzarella.org...
When you get a courtesy car from a garage it's usual for there to be a very
large excess - £1500 is not uncommon - in the event of a claim.
Usually they will try and sell you a collision damage waiver for a tenner or
so , so there would be no excess or a much smaller one.

My local VW garage ask customers to ensure that their own insurance policy
covers courtesy cars. I think most fully comp policies do - mine does.

[The Todal]

Post by Dr Zoidberg
When you get a courtesy car from a garage it's usual for there to be a very
large excess - £1500 is not uncommon - in the event of a claim.
Usually they will try and sell you a collision damage waiver for a tenner or
so , so there would be no excess or a much smaller one.
My local VW garage ask customers to ensure that their own insurance policy
covers courtesy cars. I think most fully comp policies do - mine does.

Are you sure? Mine covers courtesy cars only if they are supplied by my own
comprehensive insurers.

[Invisible Man]

Post by The Todal

Post by Dr Zoidberg
When you get a courtesy car from a garage it's usual for there to be a very
large excess - £1500 is not uncommon - in the event of a claim.
Usually they will try and sell you a collision damage waiver for a tenner or
so , so there would be no excess or a much smaller one.
My local VW garage ask customers to ensure that their own insurance policy
covers courtesy cars. I think most fully comp policies do - mine does.

Are you sure? Mine covers courtesy cars only if they are supplied by my own
comprehensive insurers.

Most insurance certificates used to and some still do cover the use of a
vehicle not owned by you and not hired to you under a HP agreement or
similar. (Often referred to as the driving other cars extension.)
The policy cover in such cases is however for some third party
liabilities. It does NOT include damage to the vehicle you are using.

[Monty L]

Post by The Todal

Post by Dr Zoidberg
When you get a courtesy car from a garage it's usual for there to be a very
large excess - £1500 is not uncommon - in the event of a claim.
Usually they will try and sell you a collision damage waiver for a tenner or
so , so there would be no excess or a much smaller one.
My local VW garage ask customers to ensure that their own insurance policy
covers courtesy cars. I think most fully comp policies do - mine does.

Are you sure? Mine covers courtesy cars only if they are supplied by my own
comprehensive insurers.

Yes, I am sure. My Certificate of Motor Insurance says:
" 1(a) Registration mark of vehicle
XXXXXXXXXX (my car)
(b) Any motor car which is loaned or hired to the Policyholder under the
Insurer's Motor Damage Claim Service or by a member of the Motor Trade while
the vehicle specified is in the custody of the Motor Trader for service,
repair or MOT"

On the back of the Certificate it further says:
"Temporary replacement cars
The cover for a loan or hire car referred to in paragraph 1.(b) of the
Certificate of Motor Insurance is:
Motor Trade Courtesy Car - Comprehensive cover including all policy
excesses.
Motor Damage Claim Service (selected repairer service) Temporary
Replacement Car - Comprehensive, no excess.

Otherwise all policy terms and conditions apply."

[Cash]

Post by Dr Zoidberg
When you get a courtesy car from a garage it's usual for there to be
a very large excess - £1500 is not uncommon - in the event of a claim.
Usually they will try and sell you a collision damage waiver for a
tenner or so , so there would be no excess or a much smaller one.
My local VW garage ask customers to ensure that their own insurance
policy covers courtesy cars. I think most fully comp policies do -
mine does.

Most full comp policies will insure you to drive any car not owned by you -
but with the exclusion that it is only Third Party or Act Only cover (not
full comp).

Cash

[Smolley]

Post by Cash

Post by Dr Zoidberg
When you get a courtesy car from a garage it's usual for there to be
a very large excess - £1500 is not uncommon - in the event of a claim.
Usually they will try and sell you a collision damage waiver for a
tenner or so , so there would be no excess or a much smaller one.
My local VW garage ask customers to ensure that their own insurance
policy covers courtesy cars. I think most fully comp policies do -
mine does.

Most full comp policies will insure you to drive any car not owned by you -
but with the exclusion that it is only Third Party or Act Only cover (not
full comp).
Cash

I have phoned my insurance company and had the cover transferred to the
loaned car on a temporary basis, no problem at all.