Thread: Car Hire Charge for Lost Keys

Hi guys, I could do with some help with this one, please...

I travel on business every week and, in doing so, rent a car from the same hire company at the airport. Just before Christmas I had a car for a few days, which I returned around 5.30am on a Saturday. Somehow, though, in my rush to catch my flight I managed to lose the keys and, as there was nobody around at that time in the morning, had to call the rental company to let them know, once I landed in London. I always take full collision damage waiver on the cars I hire, simply because the first couple of times I hired they tried to keep my deposit, blaming me for damage already done to the car before I rented it. Fortunately I had noted the damage and their onsite agent had signed the rental agreement to confirm this, so I got the money back. CDW, they told me, clears me of any liability for damage to the car, reducing any excess to £0.

Anyway, getting back to the current problem - I called the rental office and reported the keys lost. As I had full insurance I was told not to worry, as I would be covered. However, last week I received an invoice from them, charging me £95 for the lost keys. I contacted reservations and the girl I spoke with checked things out and confirmed that I should not have been charged. She put me through to customer services, but the next girl I spoke to told me a completely different story, saying that the keys were not covered by the insurance and that the £95 charge was standard. Now, I have looked through the CDW policy and have read the terms and conditions of the rental and there is nothing in there to state this charge. After arguing the case with various customer service agents, I asked to be put through to the supervisor. She agreed to do some more investigation and call me back, which she did. She argued that the keys weren't covered as they were considered 'an accessory' to the vehicle. Now, perhaps I'm missing something here, but it's rather tricky to for a car to perform it's intended function in life without a set of keys, so can they really be considered an accessory?!

Her argument is that, as the keys are considered an accessory, I had a duty of care to look after them. There is a section in the contract about this, but it doesn't really back up her case and, more importantly, another section of the terms states that the maximum liability for loss or damage to "the vehicle or its accessories is limited to the price paid for CDW and the excess payable, where CDW has been purchased."

Now, I see this as pretty straight forward, in that the terms and conditions state that I am covered, but the hire company don't see it this way, so it looks like I am going to have to fight with them over it. I really can't believe they are being so obtuse over £95, bearing in mind that I spend about £800 a month with them. Has anybody else had to deal with anything like this? I don't really want to have to go down the small claims route with this, but if it comes to it, I will...

I received a final email from the company on Friday, stating that the CDW did not cover accessories and that that was their final word on the subject. Should I now put my comments in writing and issue an lba? I have asked to speak to somebody more senior, but they are apparently always 'busy', or 'out of the office'. I really don't know where else to go with it. Any advice would be gratefully received.

I have a copy of the Ts&Cs on my office laptop, along with the email they sent, so will post these tomorrow, but in the meantime, if anybody has any thoughts, I'd like to hear them.

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I did try calling as somebody else, but nobody seemed to know the answer. They took my details and said they would call back about it, but I never heard anything from them. Thanks for the suggestion about the IO. I hadn't thought of that...

Thanks, Ian. Appreciate the comments, but aren't the keys part of the car? Surely they should be covered by the insurance. That's the point of paying such a ridiculous amount for it! Also, this company is trying to argue that the keys are an accessory. If that is the case, they are covered under the terms and conditions. Please see below for the email I received from the team leader, as well as a pdf showing the terms and conditions of the rental. Sorry, this is such a long post. I have highlighted sections 5-7, which they are using to deny the claim, and section 12, which states that loss or damage to the vehicle and its accessories are covered.

Originally Posted by Rental Company

Dear Mr *****

Further to our telephone conversation earlier today regarding our charge to you for lost keys. The keys are an accessory to the vehicle and not part of the vehicle itself and therefore not covered under your agreement.

The MasterCover Plus purchased upon collection of your hire vehicle at *******Airport includes:

Cover for theft of the vehicle
A zero excess if the vehicle sustains damage or loss
Damage to Windscreen and tyres
Personal Accident Insurance
Personal belongings coverage

Please note that loss of keys is not covered under the policy as this is deemed as "duty of care". Please refer to your terms and conditions of rental, paragraphs 5 and 7.

(See attached file: UK (in English 2).pdf)

As requested, I have passed your case over to our Escalations Manager who will be contacting you as soon as possible.

Yours sincerely

Emma Gibson
*** Team Leader
******* Vehicle Rental UK Limited
Tel: ++44 (0) 116 *******
Fax: ++44 (0) 116 *******

Originally Posted by Terms and Conditions

In these terms and conditions (a) “the Company” means the Company whose
details appear on the front of this form (b) “the Customer” means the person, firm or
organisation by or on behalf of whom vehicles are rented under these Terms and
Conditions (c) “Authorised Driver” means the driver(s) additional to the Customer
approved and entered overleaf by the Company. The Customer will ensure that
any Authorised Driver will comply with these Terms and Conditions (d) “Vehicle”
means the Vehicle described overleaf (e) “DLW” means Damage Liability Waiver (f)
“TPI” means Third Party Insurance relating to Third Party motor liability (g)
“Insurer” means the insurance company with which TPI is arranged.
1. The Company agrees to rent and the Customer agrees to take the Vehicle on the
Terms and Conditions as set out herein.
2. The Customer will pay the Company on demand all charges due hereunder
including where relevant, sums in respect of DLW, surcharges, additional
charges and VAT or other taxes thereon.
3. DLW and TPI are available through the Company. There will be an additional
charge, subject to the terms of issue, for DLW. There will be no additional
charge for TPI. The Company will always require a current, full driving licence
held for at least 12 months prior to rental, and reserves the right to inspect such
a licence. TPI will not cover loss of or damage to the Vehicle caused by driver
abuse; nor will DLW apply in these circumstances. Vehicles for which DLW
and TPI are taken out are rented to the Customer on the condition that the
Customer complies with their respective terms and conditions. The Insurer will
not accept liability for loss and damage caused while a vehicle is rented to a
Customer who does not comply with these terms and conditions; nor will DLW
apply in these circumstances. The Customer agrees to make any payment
necessary to put the Company in the same position as it would have been in if
the breach of the relevant terms and conditions had not occurred. The Customer
will supply any information concerning the driver(s) of the rented Vehicle to
the Company upon demand and undertakes to allow the Company direct access
to the driver(s) of the Vehicle and will fully co-operate in obtaining such
access. If DLW is not taken out by the Customer, the Customer will be liable
for the full cost of any damage sustained by the Vehicle. In all cases where
Customer’s own insurance has not been arranged, TPI is mandatory. For the
avoidance of doubt Waiver Excess applies not only to damage but also to
theft of the Vehicle. The Customer will use his best endeavours to supply full
details of any Third Party Vehicle involved in any accident with the Vehicle.
4. If the Customer has opted to arrange his own insurance on the Vehicle, the
cover must be comprehensive. Any excess on the policy is the responsibility
of the Customer. The Company reserves the right to ask for satisfactory proof
of the Customer’s own insurance prior to the commencement of rental. The
Customer is responsible for ensuring the Vehicle is properly insured from the
time of delivery until 12.00 hours on the first working day following
termination of the rental and indemnifies the Company against the loss incurred
or damage to the Vehicle in the event that such cover fails to be effective. If the
Customer becomes aware of any changes in his insurance cover during the
period of the rental Company’s Insurance Department (James House, 55 Welford
Road, Leicester LE2 7AR) must be notified immediately in writing. In the event
of accident/loss or damage to the Vehicle the Company will undertake repairs or
select a repairer if applicable and will invoice the Customer for such repairs and
any associated costs. Such invoice will be subject to payment on demand.
The Company may at its discretion accept payment from the Customer’s insurer,
however ultimate responsibility is with the Customer. The Company reserves
the right to inspect the Customer’s driving licence or that of his servant or agent
and the Customer undertakes to ensure that any driver using the rented Vehicle
holds a full (not provisional) licence.
5. The Customer acknowledges that notwithstanding the provisions of (3) and (4)
above he has a duty to ensure that all reasonable care is taken of the Vehicle
against damage or loss throughout the rental period. The Customer accepts
responsibility for any loss or damage to the Vehicle caused by his wilful act or
negligence. This includes but is not restricted to responsibility for any loss or
damage to the Vehicle or its accessories as a result of theft occurring when the
Customer or his servant or agent has left the keys in or with the Vehicle and the
Customer hereby indemnifies the Company against such loss or damage.
6. (a) The Customer undertakes to ensure that the Vehicle is not subject to
overloading in respect of number of persons or weight of goods carried
within the Vehicle during the rental period.
(b) If the Vehicle is used outside the mainland UK, the Customer undertakes to
ensure that the Vehicle is checked for illegal immigrants before returning to
the UK.
7. The Customer undertakes to return the Vehicle with all tyres, tools, audio
equipment and other accessories in the same condition as when received to the
place and on the date set down overleaf. If special cleaning is required for
whatever reason the Company will make a separate charge to cover the cost of
any cleaning and/or repair work required.
8. The Company undertakes to provide a Vehicle to the Customer which is in
good working order and which functions satisfactorily throughout the rental
period. If the Vehicle breaks down during the rental period (but only for
reasons attributable to the Company’s negligence or wilful default), the
Company undertakes to place the Customer in the position which he would
have been in had the breach not taken place. Therefore the Company will,
where the Vehicle breaks down in mainland UK, arrange, as soon as reasonably
practicable after being informed of the breakdown, (a) recovery and repair of the
rented Vehicle so that it is rendered functional, to a satisfactory extent, for the
remainder of the rental period and/or, (b) where the rented Vehicle cannot be so
repaired, provision of a replacement vehicle, of an equivalent standard and size
to the rented Vehicle, to the Customer for the remainder of the rental period.
Provision of this service in circumstances other than those shown above shall
be at the discretion of the Company.
9. Where the Vehicle develops a fault during the rental period owing to any
reason whatsoever, the Customer undertakes to inform the Company
immediately, and not to use the Vehicle while it is in an unroadworthy
condition.
10. Vehicles are rented at a daily rate according to the agreed charge, one day being
defined as any period of 24 hours from the time of commencement of the rental
agreement. A grace period of 59 minutes is allowed for after time due back.
After this a day’s charge will be made.
11. (a) In the event that the Customer requires a Vehicle for a longer period than the
agreed rental period the Customer must notify the Company at least 2hours
prior to the termination of the agreed rental period. In the event that the
Customer fails to notify the Company of such requirement his authority to
retain said Vehicle may, at the Company’s discretion, terminate and, in that
event, the Customer will become liable for any loss or damage incurred by
the Company as a result. The Company reserves the right, in the event of
such failure of notification, to use such lawful means as it may choose to
recover said Vehicle.
(b) If the rental is to be extended beyond 28 days the Customer must notify the
Company of the mileage of the Vehicle. The Company reserves the right to
substitute a suitable replacement Vehicle.
(c) In the event that a Vehicle on rent reaches the mileage at which a routine
service is due the Customer undertakes to notify the Company and make
that Vehicle available to the Company for such servicing to be carried out
or for the Vehicle to be replaced at the Company’s discretion.
12. If at termination, the Customer has complied with all the terms and conditions
stipulated herein, then, but not otherwise, and subject to condition 5 above,
responsibility for loss or damage to the Vehicle or its accessories is:
(a) The full cost of any damage to the Vehicle if DLW has not been purchased.
(b) Insured by the Customer where the Customer has arranged his own
insurance in accordance with clause 4 above..
(c) Limited to the price paid for DLW and the excess payable, where DLW has
been purchased.
13. All Vehicles are supplied with a full tank of fuel. If a Vehicle is delivered to the
Customer, the Customer is liable for the cost of the fuel from the time it leaves
the Company’s branch until such time as it is returned to a Company branch.
All Vehicles will be refuelled upon return to a Company branch and the
Customer accepts responsibility for the cost of such refuelling at the prevailing
Company rate per litre.
14. (a) The Customer is liable for all penalties incurred during the rental period
including, but not restricted to, parking, clamping, bus lane and speeding
fines, congestion and compound charges and in addition when the
Company has to provide the Customer’s details to the authority levying such
penalty, or it remains unpaid the Customer shall also be charged no more
than an amount equivalent to the actual cost of the penalty.
(b) At the termination of the rental it is the Customer’s responsibility to ensure
that the Vehicle is parked in a suitable place to allow collection at any time
up to a period of 6 working hours from termination without the imposition of
any parking or clamping fines or towing or compound charges. If this
provision is not complied with then the Customer shall be responsible for
such penalties. If these remain unpaid they shall be charged to the
Customer, together with an amount equivalent to the actual cost of the
penalty incurred.
(c) If the Vehicle is seized by Customs & Excise or the Immigration Authorities
the Customer shall be charged for any Civil Penalty and restoration charges
and loss of income whilst the Company cannot rent out the Vehicle.
15. The Vehicle will not be used:
(i) For the carriage of passengers or property for hire or reward.
(ii) For racing, pacemaking, reliability trials, speed testing or driving instruction.
(iii) To propel or tow any other vehicle or trailer except where the Vehicle is
covered by the Customer’s own insurance and the Company’s
written consent has been obtained.
(iv) In violation of the provision of any legislation, order or regulation affecting
the use, loading or condition of the Vehicle or for any illegal purpose.
(v) Outside mainland United Kingdom without the express agreement of the
Company.
16. The Vehicle will not be driven by any person:
(i) Other than the Customer or an Authorised Driver.
(ii) Who is under the age specified by the Company from time to time (details
of which will be available at the time of reservation). At certain locations
an upper age limit may apply.
(iii) Who has not held a valid full driving licence for a minimum period of 12
months.
(iv) Who is under the influence of alcohol, hallucinatory drugs, narcotics or
barbiturates.
(v) Whose driving licence is subject to restrictions due to disability or infirmity.
17. The Customer acknowledges that any property placed within the Vehicle is
there at his own risk and that the Company has no responsibility for such
Property.
18. The Customer will at the Company’s request do all required by the Company
on its behalf and on behalf of the Insurers and permit his name to be used by
the Company for enforcing any rights or remedies against any persons in
connection with the Vehicle.
19. The Customer or any Authorised Driver of the Vehicle will in no way be
deemed to be the agent, servant or employee of the Company.
20. The Company will not either on its own behalf or on behalf of the Insurers, waive
any of its rights hereunder except in writing signed by a duly authorised
representative of the Company or the Insurers respectively.
21. The Company reserves the right not to reimburse any repairs in excess of £10
not authorised in advance by the Company.
22. If the Customer is a Company or other organisation for which a credit account
has been opened these terms and conditions must be read in conjunction with
the Corporate Terms and Conditions of Trading given to the Customer at the
time of opening the account as varied from time to time. In the event of any
inconsistencies the Corporate Terms and Conditions shall prevail.
23. The Company reserves the right to terminate the rental to which this agreement
refers if it becomes aware of any breach by the Customer of these Terms and
Conditions. Upon breach of the above terms and conditions the Company
may give your personal details to credit reference agencies, the Driver & Vehicle
Licensing Authority (DVLA), Customs & Excise, the police, debt collectors,
and any other relevant organisation. The Company may also give your
personal details to the British Vehicle Rental and Leasing Association, who
may pass your details on to any of its Members for any purpose stated in the
Data Protection Act 1988.
24. Government taxes and other levies will be charged as required by current
legislation.
25. The Customer acknowledges that the Company is entitled to charge any credit,
charge or debit card nominated at the time the rental is effected for any charges
due to the Company pursuant to this agreement.
26. If the Customer has chosen to pay in a currency other than that used by the
Company when the quote was prepared, that choice has been made in the
knowledge that the Company has used an Exchange Rate based on a
commercial exchange rate supplied by Barclays Bank, plus 2.75%. The
Customer accepts that a choice of currency was available and that their decision
is final.
453D/10/06/05

Update: Just had a call from the escalations manager reffered to in the previous letter, shown above. He has dug his heels in and stated that they believe that loss of keys is negligent and is, therefore, not covered! Grrr.... Looks like I'm going to have to go all the way on this one. I think I'll try my credit card company first and see if I can suspend that payment. Anyone have any experience of this?

I have to agree with the Hire Company that keys are not covered under CDW policies, therefore you will be liable for full cost of replacement. However you could possibly claim on your household policy, as most include a section for loss of keys.

Well, apparently they are covered! Alamo have just called back and apologised profusely, stating that, upon further investigation, they have discovered that keys are covered by the MasterCover Plus policy, so they will be refunding my £95. Success!!

Thanks, all, for your comments.

I mentioned it a few times this morning when the manager chap called and when he told me that they were not prepared to do anything else, I said that I would take it to the small claims court. I don't know what helped more, but I was surprised when he called me back and said that he had made a mistake and that I was covered. I think what surprised me most was the fact that he had finished the call and continued to research the insurance issue, rather than just ignoring it. Massive respect to him for actually calling back and admitting that they had made a mistake...

I always take full collision damage waiver on the cars I hire, simply because the first couple of times I hired they tried to keep my deposit, blaming me for damage already done to the car before I rented it.

And you used them again ???

Yes, company policy, unfortunately, that I have to go with the cheapest company, which they are...