How to Resolve Car Rental Disputes over Damages and Charges

Introduction

Hey there — It looks like you’ve found our blog! Here at Chiriqui Car Rentals, we’ve got lots of articles detailing all the information you need to know about renting a car in Panama! In this article, we’ll be talking about the car rental disputes and charges you may encounter when renting a car in Panama. Although everyone hopes to avoid a situation like this, it’s always good to be prepared and know how to handle these events. We’ll explain a step-by-step process for these situations and provide a list of helpful preventative measures you can take beforehand. 

If you are traveling in Panama via a rental car, you will be well informed ahead of time for any unforeseen events. And if you're currently experiencing and working through a car rental dispute, we hope this article helps you out! As always, if you have any more questions, give us a shout through our contact page; we’re always happy to help.

What are Car Rental Disputes?

A common car rental issue that renters face is when the rental agency charges you more or withholds the safety deposit, citing a reason that you don’t agree with. This may be damage to the rental car or possibly even smaller disputes over things like mileage being too high or other smaller fees. It’s possible you feel that you were overcharged unnecessarily. In some cases, that could be true, but in others, the charges may be justified. If damage is caused while you are in possession of the car, it is your responsibility. Some companies withhold the safety deposit or they may add an additional charge to your base price when damage is incurred. 

How to Resolve Car Rental Disputes over Damages and Charges

Review your Rental Agreement

We cannot overemphasize the importance of this step when talking about car rental disputes. You must be aware of the terms and conditions to which you have agreed. Important details to check here are the safety deposit and the procedures for returning the deposit, the deductible (or how much of the cost of repair for third-party damage you could be responsible for), and smaller restrictions that, if not followed, can infer extra charges. This includes things like Mileage Restrictions and Age Restrictions.

Got questions about car rental insurance? Check out our article How to Choose the Right Panama Car Rental Insurance!

Communicate in Person

To avoid car rental disputes when returning the vehicle, check your receipt and review all charges to be sure you are not overcharged. It’s much easier and better to do this before you leave so you can ask any questions. Ask the agent to break down all the fees so you can see what is added to the final cost.

If communicating in person isn’t possible, contact them as soon as possible. The sooner you address any concerns, the more likely you'll resolve them without complications. 

Resolve any Car Rental Disputes in Person, if possible.

If you have a question or feel that you have been charged a fee that you didn’t agree to or believe you didn’t incur, ask the agent. They may be able to explain the terms of the agreement and why there is a fee that you didn’t expect. If this is the case, and the contract that you signed is in agreement with the fee, you have no choice but to pay the fee and move on. 

If you were charged for pre-existing damage, show any photos you have from the time of pick up. Refer to the form where all existing damage was taken note of beforehand. If there are photos as well as a written description of the condition of the car when rented, that should suffice. When dealing with car rental disputes, any information like this is valuable.

Sometimes, the damage was caused during the rental, and you may expect your insurance policy to cover it. It is very important to go over the policy with the agent, review the terms, and make sure that all parties are on the same page regarding what your insurance does and does not cover. Oftentimes, the insurance is only for third parties (liability) and does not cover the damage that you may cause during the rental. If the policy excludes this, you must pay the extra charge.

Escalate Car Rental Disputes if Needed

We sincerely hope that you are able to resolve any car rental disputes without stress, but if not, there is a final step. You can try reporting it to a Consumer Protection Agency, who can help with dealing with the car rental company. If they cannot help settle the dispute, you also have the option of taking legal action. Just be aware of the costs associated with that as well, as it may not be worth it.

Be Respectful

When dealing with agents over car rental disputes, it’s easy to feel like you are being treated unfairly. Remember, the agent is likely just doing their job and following company regulations.

3 Tips and Tricks for Avoiding Car Rental Disputes in the Future

Document Pre-Existing Damage

Documenting all pre-existing damage can prevent future car rental disputes. We recommend taking photos from several angles of all sides of the car and reviewing them with the agent to make sure that all existing damage is noted.

Be Mindful on the Road

This may sound redundant, but it's very important to be careful when renting a car. Always have your wits about you, especially in Panama! 

Be Honest with Agents

When communicating with the agent, you must be honest and upfront to settle all car rental disputes. Usually, if you can back your words with photo evidence, you can present a clear and accurate picture of events to the agent.

Closing

In conclusion, renting a car in Panama can be a great and hassle-free experience. However, among all the successful stories, there are always those who’ve faced challenges with car rental disputes. We hope that you don’t find yourself wrestling with a rental company over damage charges. But with everything we’ve included in this article, you’ll be well-prepared to handle any issues that may arise.  

Check out the rest of our articles about renting a car in Panama here!