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Loaner Car Warning


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Read the "free" rental agreement carefully. Lexus touts their no-cost loaner car as a real bonus for Lexus service customers, but you are personally responsible for any damage to the car while in your possession, even if the damage is caused by another driver/person. I was involved in a minor traffic accident caused by another driver making an unsafe lane change. The Lexus claims people (a company independent of Lexus) and I both believe the other driver to be at fault, but not surprisingly the other driver's insurance company denied liability. That's their job: Deny liability.

The Lexus claims adjuster applied no pressure to collect and just bounced it back to me. So much easier. I understand all of this. It's business, although I don't understand why Lexus bothers hiring a claims adjuster when the automatic bounce-back would seem to be so simple and quick. I must now either hire a lawyer or make a claim against my insurance, and either option will cost me money. Through no fault of my own, I will pay to repair a car that isn't mine for damage I didn't cause.

I've decided that since my car is out of warranty, I'll be using an independent Lexus mechanic within walking distance of my house for future service needs and may not buy another Lexus.

How ironic that this dealer will also lose money through no fault of their own.

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I don't understand your point? If it was a rental car it would be no different. Why would any company that is allowing you to use their loaner car cover damages that were caused when in your possession?

Now as far as the insurance issue...this is one of the most frustrating parts of my business. So many companies have started doing this. But did you call the police, or have any other witnesses? The attorney will be a waste of time, you can file with your carrier and pay your deductible and they will try to go after the other company (subrogation) it many times becomes much to costly to litigate so they don't recoup any money on these small claims...that means you don't get your money back. These direct carriers namely Geico has started this, now progressive and nationwide all seem to do this everytime if their insured hits another person and it is a word vs word situation. Even when it is clearly the other drivers is just impossible to prove and the other companies know it. Next time take pictures, get names of others, call the police. Now personally since the police don't do police reports unless there is an injury, for me I may or may not call the police.

What was the reason the other carrier denied the claim? I wouldnt give up so easy...many times that is what they want...they go away. Call and after the first person tells you it is denied, ask for a supervisor and keep going you never know they may assume liability. Best of luck...your issue is with the insurance company...actually the dishonest person that hit you...not Lexus.

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Yeah...I totally don't get your point. Why would you expect that you would not be responsible for damage done to the dealer's property while its in your possession, whether that property was loaned to you for free or not?

I agree...the issue here is not the Lexus dealer...they are a damaged party same as you. Its the other driver and his insurance company that are the issue.

Had you been in your own vehicle, you'd be in the same situation. Just because the loaner is provided to you at no cost doesn't mean you aren't responsible for it when its in your possession.

Do they not teach these things in school anymore? Personal responsibility for one's property, or the property of others when they let you borrow it?

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This is what I understand about rental cars and loaner cars. Unless the rental agency (which is Lexus in your case) offers an optional insurance plan (I don't recall them offering one as my Lexus dealership uses my personal car insurance when I sign out a loaner car), then it's your own personal car insurance is what's going to kick in when you are involved in any damage or accident to the rental vehicle you are driving. If you decline the optional insurance plan, consider it like you're driving your own personal car and when you get hit, the process will be the same. Only difference is that the car that is damaged isn't yours so you don't have to be too picky about how perfect the repair should look but you should try defend yourself in your case because the loaner car is damaged and the dealership will not pay for any damages to their vehicles.

In your case if the evidence proves that the other party is at fault, you should talk to your insurance and see what can be done. I'm THINKING (don't hold me accountable for this) the other party won't accept liability is because they're taking the easy way out by saying "You aren't driving your own car so we won't accept liability" but talk to your insurance and say that you have the rental agreement with your Lexus dealership to prove that the vehicle was legally released for your own use and that should help fight the other party's insurance

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