What is the term Applicable Excess on a rental car agreement mean? Does it mean I only pay up to the amount of repair?

Question

I accidentally put the wrong fuel type in a rental car and they had to do repairs. The Applicable Excess amount on the agreement is 3000, total cost of repair just under 10,000, does this mean I only have to pay 3000 or the excess over 3000 (7000)? I declined additional coverage, they are saying I owe the entire 10,000, is that legally the case?

James L. Arrasmith · Answer

In rental car agreements, the "Applicable Excess" typically represents the maximum amount you would need to pay in case of damage when you have insurance coverage - similar to an insurance deductible. However, since you declined additional coverage, this excess limit unfortunately doesn't protect you. 
 
Without additional coverage or insurance, you're generally liable for the full amount of damages under California law and standard rental agreements. This means the rental company can legally require you to pay the entire $10,000 repair cost. The $3,000 excess amount would only apply if you had purchased their insurance or damage waiver options. 
 
Your best course of action might be to check if your personal auto insurance or credit card provides rental car coverage - many do, even if you weren't aware of it at the time. You could also try negotiating with the rental company for a reduced payment plan. If you believe the repair costs are inflated, you have the right to request detailed documentation of all repairs and potentially seek an independent assessment.

Q: What is the term Applicable Excess on a rental car agreement mean? Does it mean I only pay up to the amount of repair?