I rented a car and declined the insurance the rental company offered.
Then I got in an accident and the car was totaled. When I went back to
the rental office to fill out the paperwork, they charged me $500 for
my deductible. Just recently, four months after the accident, they
sent me a bill for almost $12,000. I know I was responsible for the
car, but I'm sure the car was insured and they got paid by their
insurance company. So, my question is can they still charge me for the
car even though I'm sure they already collected the money for it? Is
this legal? And is there anything I can do about it?

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Clarification of Question by rufus28-ga on 23 Feb 2006 07:31 PST

I just want to add to whoever might answer my question that the reason
I rented the car is because my car was totaled as a result of another
car accident. The insurance company of the person who hit me was
paying for the rental. But they
only covered $30/day so I didn't have the money to pay for the
insurance. I had the car for a long time. Would they in any way be
held liable for any of this since they were paying for the car?

I'm sure they already collected the money for it....

How are you 'sure'.  Do you have legal proof?  
Even if they are insured (which they would be incase someone likes you
claims bankruptcy and they can't collect) they need to try and collect
from YOU first.  If not, why would they bother offering insurance at
all!  If you can just walk away the rental company themselves would
never be able to afford to cover things.

Sorry you made such a poor decision but you're going to have to pony up.

Other thread on same topic:

http://answers.google.com/answers/threadview?id=432468

I've heard that some credit cards cover rental insurance as well as
some insurance carriers(capitol one, AAA). Could be worth checking
into.

I assumed the questioner had looked into that option, but your right:

Yes...with many CC you may have automatic CLDW if you charge the
complete rental to the card and if you decline ALL CLDW type insurance
from the rental agency.

I'm not sure you are using the right term in your question...you paid
a $500 deductible?  Deductable would indicate that you had insurance. 
Please clarify.

Thank you for your inputs. I'll take any advise I can get at this point. 
As for your question, when they charged me the $500, they called it a
deductible. That's why I'm calling it that. At the time they told me
that's all I'm responsible for.
I also forgot to mention that the reason I rented the car is because
my car was totaled as a result of another car accident. The insurance
company of the person who hit me was paying for the rental. But they
only covered $30/day so I didn't have the money to pay for the
insurance. I had the car for a long time.

You have your own car plus you were recently in an accident. Are we to
understand that you do not have your own auto insurance?  If not, then
you are responsible for all the damages.  If you have your won auto
insurance then you should be covered for this loss.

"when they charged me the $500, they called it a
deductible. That's why I'm calling it that. At the time they told me
that's all I'm responsible for"

If they charged you a deductible that implies you had insurance.  Do
you have anything in writing that says that was your total liability? 
For instance, if I was in your situation and they said 'hey, pay us
the $500 deductible' I would have responded by saying ' sure, here is
$500 bucks deductible, give me a receipt for it that says what I am
paying this for'  This receipt should then lay out the fact that this
is a deductible being paid on the totalled vehicle and that this is
the sum and only payment due by you.

So...Did you get a receipt for your $500?  If not, why not? You might
have some legal wiggle room here but it will become a he said/she
said.  Your point would be...Dear Mr. Rental Agency, please explain to
the courts the nature of the $500 fee paid to you by Mr. Rufus 28?

As an example...I work for a bank...if I have a client that has gone
into arrears on a loan such that it has gone to collection I screw
that up for the bank by taking even 1 penny in payment directly from
client.  Has the rental agency screwed up their claim against you by
taking a $500 'deductible'? I really hope you have a receipt.


As to the point about your own insurance....I would again assume you
wouldn't be at this point so far down the road if you had your own
insurance.  Assumption is that you don't.  If you do you should be
talking to them not Google Answers!

Well I do have my own car insurance, but I don't have full coverage. I
only have liability coverage with them. I am still going to check with
them if they would cover anything. But my last question was about the
insurance company that was paying for the rental. Would they be liable
for anything? They are the insurance company that the guy that hit my
car has. They were paying for the rental car for me, since he was
responsible for totaling my car.

When they 'agreed' to pay the cost of the rental $30/per
day...again...what does your paper work say...I can't imagine that an
insurance company just sent you cash to cover a rental without some
paperwork to sign...

I don't see how it makes any difference that an insurance company was
giving you money towards the rental.  This rental car was replacement
transportation for your own vehicle.  Pretend you had this same
accident with your own car.  If you don't have insurance, and you
didn't get any on the rental car, then it is just as if you wrecked
your own personal car.

Unfortunately, you seem to be out of luck and are responsible for the
total damage to the car, assuming it is your fault.  If someone else
was also at fault, then you may want to pursue them as well.  But as
far as the rental car company is concerned, you owe them.

This is why you are supposed to have insurance.  By not having full
insurance, you are saving money in exchange for taking a big risk.