What is it that people from the Bronx, Brooklyn, and Queens are actually doing to their rental cars??

Following the revelation earlier this week that Hertz and Dollar have surcharges for residents of these three boroughs of New York City (but not Manhattan or Staten Island), I decided to write to Dollar and Hertz and ask why some New Yorkers were worthy of higher rates than others.

Within a few hours, Donna from Dollar Rent-a-Car replied:

Unfortunately this is the locations policy. According to the location, rentals from people in these areas who have rented from Dollar have proven to be more of a liability.

Hmm. Well, at least Donna wrote back quickly. Still no reason why New Yorkers renting at a location in another state (e.g., in Philadelphia) get smacked with surcharges.

How about Hertz? 36 hours after the original inquiry, Rhonda wrote back:

Hertz does apply residence based rates for residents of New York City renting locally, that take into account the extraordinarily high liability costs associated with local rentals in the New York area. These rates are based on borough of residence. The same residence-based rates apply equally to all residents of a borough. The residence-based rates are not applied on the basis of race, ethnic origins, age or sex. Rather, they are based on historic liability costs associated with local rentals to residents of New York City boroughs.

“Extraordinarily high liability costs” ? Personal liability, as in running people over, or loss of the car? And if liability is higher, then isn’t that what insurance is for, instead of raising the base rate?

I once rented from Advantage Rent-a-Car in Seattle, and they demanded a copy of my insurance policy before they would let me waive their CDW, LDW, etc. I had to call USAA and have them fax a copy over. As obnoxious as that was, perhaps Hertz and Dollar should demand proof of insurance before they slap $55 a DAY in surcharges on the base rate!

New Yorkers, you’ve been warned!

The Consumerist points to a nasty punitive provision in the Dollar Rent-a-Car rental agreement.

1.O Higher rental rates for New York City (Brooklyn, Bronx, and Queens) resident renting in New York, Newark, NJ and Philadelphia may apply as follows:

* For Brooklyn residents the rates will be $55.00 higher per day.
* For Bronx residents the rates will be $53.00 higher per day.
* For Queens residents the rates will be $11.00 higher per day.

I’ve heard of rental rates varying depending on the country of the renter’s residence (obnoxious enough in its own right, frankly). But varying by city borough?? (Manhattan and Staten Island residents are in luck, no surcharge And $55 per day surcharge for Brooklynites?!!?) This sounds a heck of a lot like redlining.

But the shocker, for me at least, is that Dollar isn’t alone. Similar policies, with different surcharge rates, exist at Hertz for NYC rentals:

Higher rental rates for New York City residents may apply as
follows:

- for Queens residents rates are USD 15.00 per day higher
- for Bronx residents rates are USD 56.00 per day higher
- for Brooklyn residents rates are USD 34.00 per day higher

Hertz and Dollar must be run by Mets fans.

I couldn’t find outer-borough surcharges on Budget or Avis. Anyone out there know of other redlining car rentals?

Dollar already alienated me with their no-grace-period policy. That, plus the New Yorker Tax, suggest that they won’t be satisfied until everyone in America is offended.

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I know that car rental companies are getting more onerous in their restrictions on rentals. (Like low-mileage charges…)

I also previously discussed the reduction in the grace period from 59 minutes to 30 minutes at Hertz.

But yesterday, when I picked up a car from Dollar Rent a Car at Salt Lake City Airport, I was treated to two conditions in the contract that I’d never seen from a major rental agency at an airport:

- No grace period at all. None. Pick up the car at 12 noon, return it a week later at 12:10? Pay an extra hour.

- No taking the car out of state. I’ve seen this at Enterprise Rent-a-Car for insurance rentals, but at an airport? From a major agency that deals with tourists, businesspeople, etc.?

Dollar seems to be actively trying to alienate its customers. Is this a case of incompetence or malice?…