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Car rental age surchage (<25)

Discussion in 'Fred's House of Pancakes' started by jmann, Jan 20, 2007.

  1. jmann

    jmann Member

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    Time for a RANT:
    Someone has to do something about this blatant discrimination. When I rent from enterprise In FLL, for example, I pay an extra $10 a day. Wth is that $10 for? It is not insurance; I have my own. It does not cover any additional risk for the agency, as I am paying for my own insurance. It does not reflect my creditworthiness (which is better than 95% of their clients anyway). Wth is it for? I Bring my own insurance. I have my own credit. What relevant criteria makes me different from someone who is 25? From the point of renting a car, we are the same. If they were selling me a car, they would not charge me more. In fact depending on the brand, I get one of those "recent collage graduate" rebates.

    I have asked ever car rental reservation employee and representative I have come in contact with. The answers have varied from a dumbfounded "I have no idea, I am curious now" to "you represent an additional risk." which when I say "you are telling me me that I am paying $10 for insurance" and he/she says "that is not insurance." and I say "If I am paying for insurance separately or using my own insurance, how exactly do I represent an additional risk to you?" and I get that same dumbfounded answer again. So... I am now working my way up to the CEO of enterprise looking for the answer.

    On a side question to my curiosity, has anyone ever opened a corporate account just to get around those fees?

    And Enterprise is a rare exception in at least having their additional fees being remotely reasonable in comparison to the others companies fees.

    Answers anyone?
     
  2. Tideland Prius

    Tideland Prius Moderator of the North
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    Around here, you can't rent a car if you're under 23.

    However, our private vehicle insurance is similar. They claim they don't discriminate against race, age, sex, religion, yadda yadda yadda. Yet for some reason, I'm paying more than my dad because I'm in the "16-25 year old category." I have a clean record since I got my licence and yet I'm paying the same as my friend who's crashed (and totalled) 2 cars. (Given a level playing field of course. He's paying more for the claims but that applies to anyone who makes a claim).
     
  3. jmann

    jmann Member

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    <div class='quotetop'>QUOTE(Tideland Prius @ Jan 20 2007, 11:08 PM) [snapback]378516[/snapback]</div>
    Get a new agent.

    I got a new agent and the whole insurance costs for my household (five drivers) HALVED. That is right, it HALVED. Get a new agent. Your insurer and agent does not want your business.

    Also remember that your risk is not based only on your driving record. Your credit history, marital status, and car, for example significantly represent your risk. Of course, this is all assuming that the statistical models used to determine risk are accurate. Are they? well no not perfectly accurate, but the correlations do exist.

    Get your FICO score above 780 and get married and you will be paying significantly less.
     
  4. hyo silver

    hyo silver Awaaaaay

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    <div class='quotetop'>QUOTE(jmann @ Jan 21 2007, 12:16 AM) [snapback]378521[/snapback]</div>
    That's a little drastic to save a few bucks, isn't it? :D
     
  5. cwerdna

    cwerdna Senior Member

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    When I was under 25, I also encountered being charged extra by some rental car agencies. There are some that won't even rent to you at all if you're under 25 unless it's rented via corporate account.
     
  6. fshagan

    fshagan Senior Member

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    We had trouble even with corporate accounts and young drivers, so that isn't always a way around it.

    The car rental companies really don't want your business, and they are hoping that $10 will scare you away. And the insurance companies think you're a greater risk. And that's because you have the misfortune of being in an age group that has a higher incidence of drinking and driving , has auto accidents as the leading cause of death, and are the absolute worst drivers statistically speaking, except for those over 75 years of age.

    There is one consolation for being in a statistical quagmire: you will grow out of it. There aren't many societal prejudices that go away just because you get older.
     
  7. Sufferin' Prius Envy

    Sufferin' Prius Envy Platinum Member

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    The rental companies just playing the percentages.

    The percentage of drivers, under 25, who will drive a rental car like a maniac because, 'hey, it ain't my car' - is much higher than the over 25 crowd.

    Ten bucks sounds about reasonable, considering the extra wear and tear on the tires, stereo speakers, engine, transmission, suspension, upholstery, etc, etc, etc.

    - YOUR insurance doesn't cover that stuff, unless its egregious . . . and then, you insurance may not cover it after all, because it was purposeful destruction of property.

    Ten bucks? Just be glad they let you have the car . . . punk. ;)
     
  8. cwerdna

    cwerdna Senior Member

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    <div class='quotetop'>QUOTE(fshagan @ Jan 20 2007, 11:05 PM) [snapback]378586[/snapback]</div>
    I see. I interviewed w/some companies (one of which I still work for) when I was <25 and they got me and all their <25 candidates rental cars w/o problem even though that rental agency ordinarily won't allow anyone <25 to rent at all.

    The company is very large and maybe the size along w/amount of business they did that made the difference. On a side note, on one of these interview trips, I heard one of the candidates got into an accident w/the rental. Oops. That's NOT a good way to make an impression.
     
  9. Godiva

    Godiva AmeriKan Citizen

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    Call it age descrimination but the rental companies have statistics on their side.

    Just wait until you're discriminated against for getting that job or that promotion because you're too OLD.
     
  10. jmann

    jmann Member

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    <div class='quotetop'>QUOTE(Godiva @ Jan 21 2007, 02:50 AM) [snapback]378599[/snapback]</div>
    This is a good summary of the rational everyone is this thread listed so far. So are you telling me that the $10-45 per day surcharge is insurance? Because My insurance is paying to insure the car while it is rented to me and I have been specifically informed that it is not an insurance fee.
     
  11. burritos

    burritos Senior Member

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    <div class='quotetop'>QUOTE(jmann @ Jan 21 2007, 12:41 PM) [snapback]378689[/snapback]</div>
    Just because you have insurance doesn't mean they don't lose money if you wreck. I'm sure it's more than inconvenient and statistically, you and your sub 26 y/o brethren wreck more than the rest of us. If you do wreck, I'm sure that your insurance company will do what it can to delay payment which of course costs the company's bottom line.

    They could hypothetically just spread the insurance cost equally amongst all drivers, but just like regular insurance that's unfair to the statistically age safe drivers and probably will chase away valuable business as probably the bulk of their business is the above 25 y/o group.

    Just be glad you can rent a car. If you don't like it, you can always start your own car rental company and rent at the same rate for all comers.
     
  12. jmann

    jmann Member

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    <div class='quotetop'>QUOTE(burritos @ Jan 21 2007, 01:26 PM) [snapback]378714[/snapback]</div>
    This is called "loss of use," any loss including the loss of revenue that the rental agency inures. If my insurance covers this, why would I have to pay it again? Note that the insurance offered by credit card companies does not include this.

    Nonetheless, keep in mind that at $10-45/day that is the equivalent to a $3650-$16200 annual policy which FAR exceeds the actual cost of insuring a vehicle.

    This brings me to an interesting side point: My credit card companies have offered me the same supplemental car rental insurance since I was 18 at no additional cost.
     
  13. eagle33199

    eagle33199 Platinum Member

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    Lets put it this way... If they can justify charging you more (which, given the industry, they can), why shouldn't they? they're out to make a profit, plain and simple. For young people especially, they know that if you're traveling odds are you'll have a friend pick you up and drive you around... but if you don't know anyone in the city, you're stuck having to rent from them, regardless of the cost.

    And like others have said, they have statistics on their side. Insurance companies charge more for the "at risk" population - whether it be personal history, youth, or the fact that you own a red sports car. And as stated above, younger drivers tend to be more aggressive - indicating a greater wear on the vehicle.

    Finally, on a recent trip to New Mexico with a bunch of college friends, we rented an SUV (since we were renting mountain bikes and driving to a campsite about 2 hours away and the local friends cars couldn't handle it) and several times during the trip you heard someone say "do whatever you want, it's a rental" or something else more colorful to that effect. (and yet in the end we all pitched in and spent some time cleaning out the inside...)

    So yes, younger drivers do tend to cost them more. Is it unfair that everyone gets penalized because there are a few irresponsible people out there? probably... but it all comes down to the fact that they are doing business to make money - if they can charge more, why shouldn't they?
     
  14. jtullos

    jtullos New Member

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    I remember going through that crap not too long ago. Yes, it's stupid, yes, it's unfair, but unfortunately, that's the way it is for now. You could try to push them to change the policy (they probably won't simply make the rate equal for everyone), but it could go to something worse, where you have to go through a full insurance/credit/DMV check before you can rent a car.

    As to the attitude that you can do what you want to it, since it's a rental. I've never had that attitude, and think it's very wrong. I was raised to always have respect for other people's property. So to me, it's a rental, I have to treat it better than I treat my own car.
     
  15. JimN

    JimN Let the games begin!

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    <div class='quotetop'>QUOTE(jtullos @ Jan 22 2007, 11:22 AM) [snapback]378979[/snapback]</div>
    With people like you maybe there is still some hope for this country. When I took a 2004 Prius for a test drive the salesman seemed a bit surprised how I handled the car. He seemed to be expecting some sort of harsh treatment. Perhaps abuse of others' property is not confined to the young as I am not exactly a teenager.
     
  16. Pinto Girl

    Pinto Girl New Member

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    <div class='quotetop'>QUOTE(Sufferin' Prius Envy @ Jan 21 2007, 02:08 AM) [snapback]378587[/snapback]</div>
    Word.
     
  17. jmann

    jmann Member

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    UPDATE:

    I just opened up a corporate account to eliminate this problem for me, my family, my siblings, and my friends. Loophole found; end of complaint.