Source: Consumer NZ
A recent investigation reveals how autoUnion pressures customers into paying large bonds to cover the excess on an insurance policy some believe is dodgy.
Chris Schulz, senior investigative journalist at Consumer NZ, is warning those looking for an affordable car hire option in Auckland or Christchurch to avoid car rental company autoUnion. Despite alluringly cheap daily rates, Schulz believes autoUnion’s cheap deals could end up costing a fortune.
Consumer initially received a tip-off from an autoUnion customer, Jesse Ashwell, about the car rental company’s potentially fraudulent practices.
“Ashwell bought insurance online when she first booked her car, but when she turned up at the car yard, she was asked to pay a $3,000 bond to cover the insurance excess on an additional ‘basic cover’ insurance policy.
“She didn’t receive a copy of an insurance policy document or any information about autoUnion’s insurance provider – despite requesting it,” says Schulz.
Ashwell says: “I refused to pay a $3,000 bond so it took two and a half hours to sort out the rental. When I finally got to the car, I found a dirty, smelly Toyota Aqua.”
“The car broke down on the third day of hire. Ashwell was accused of filling it up with the wrong petrol (which she denies and has a receipt to prove) and her credit card was charged over $1500 to cover the damage autoUnion alleged she’d caused” says Schulz.
“We’re concerned autoUnion is targeting people looking for a super-cheap rental car, charging them a hefty bond to cover their insurance excess and then finding a reason to hold onto that bond.”
A spokesperson for autoUnion explained it is a budget rental car company and admitted it had had issues with some customers being confused by the company’s insurance policies – especially if they’d already paid for insurance when booking through a third-party company. But the spokesperson said autoUnion would never attempt to scam people in this way.
But Schulz believes autoUnion is up to no good and likely to be breaking the law.
He urges others looking to hire a cheap rental car to avoid autoUnion at all costs.
“It’s understandable that people will be tempted when a rental car is that cheap – but, in the case of autoUnion, it’s not worth it.
“Ashwell was pressured to buy an additional insurance product that we haven’t seen any evidence exists, accused of something she’s confident she didn’t do and then charged for alleged damage.
“AutoUnion’s behaviour is unacceptable and we’re concerned others may have been stung by similar charges.”
If you’ve had a similar experience to Ashwell, please share your story with us at playfair@consumer.org.nz.
“We want to get to the bottom of what’s going on with autoUnion, and if necessary, shut down this practice.”
Tips for renting a car
Check to see if the company is registered with the Rental Vehicle Association
Read reviews and check the terms and conditions of any deal before entering into a contract. If a deal seems too good to be true, it probably is.
Book directly through the rental company’s website.
Car hirers should be up front about their insurance policies and provider’s details.
If you’re asked to pay a bond, make sure you know what the bond covers and read the terms and conditions thoroughly.
Notes
You can read more details about Consumer’s investigation into auto-Union on its website: Is an Auckland car rental company profiting from ‘fake’ insurance? ( https://consumernz.cmail20.com/t/i-l-fikwx-ijjdkdttjk-j/ )