Avis Budget Car Rental has agreed to pay nearly $34 million to resolve claims that it did not carry liability insurance as promised in rental agreements.
The settlement benefits consumers who rented an Avis or Budget vehicle in Florida between June 12, 2008 and January 1, 2016 and whose rental receipt included the words “SLI .00/Day Accepted” or “ALI .00/Day Accepted “. Renters who have been involved in accidents and have pending liability claims or whose liability claims have already been paid are not included in the settlement.
Avis Budget Group is a car rental company that offers rentals under multiple brands including Avis, Budget, Zipcar and many more. These brands allow travelers to rent vehicles while away from home.
Unfortunately, according to a class action lawsuit, Avis Budget failed to carry the required liability insurance it promised in the rental agreements. Plaintiffs in the case say Avis promised to purchase an additional $1 million liability insurance policy from ACE American Insurance Co. to cover non-US citizens and vehicles rented in Florida. Despite the promise to purchase this coverage in the rental contracts, Avis Budget reportedly failed to obtain the policy.
The plaintiffs in the Avis class action claim that the car rental company violated the terms of its contract and therefore violated Florida law.
Avis has admitted no wrongdoing, but has agreed to pay $33.9 million to resolve those allegations. The settlement helps all parties avoid the risks and costs of pursuing litigation through to trial.
Under the terms of the settlement, class members may receive a cash payment based on the number of days they rented a vehicle from Avis. Class members are estimated to receive between $6.51 and $7.46 per rental day depending on the number of claims filed. Minimum payments of $6.51 would result in average payments of $87.32 plus interest, although the exact payments vary.
The objection deadline is October 22, 2022. The unsubscribe deadline has already passed. The final settlement approval hearing is scheduled for November 10, 2022.
In order to receive a settlement payment, Class Members must submit a valid Claim Form by January 20, 2023.