During the “National Day” holiday on the mainland, a case of employees of a car rental company secretly damaging vehicles for insurance claims has once again attracted attention. Four car rental company employees in Chengdu, Sichuan, engaged in attracting customers online at low prices, then used GPS to track the rented vehicles of customers. They would then smash the windshield when unattended or secretly create scratches when returning the vehicle, in order to claim repair fees and withhold deposits.
According to reports from mainland media on October 3rd, one of the four individuals was responsible for posting low-priced car rental information on online platforms, while the other three were in charge of handing over and receiving the rented vehicles.
When customers return the vehicles, they would create scratches on areas like the headlights and wheel hubs using files and stones when the customers were not paying attention. Subsequently, they would claim that the damages were caused by the customers, demanding repair fees ranging from thousands to tens of thousands of yuan.
They would also mark pre-existing but not very visible old damages on the vehicles beforehand, and then attribute these damages to the customers during the vehicle inspection upon return. If customers refuse to pay, they would not be able to retrieve their deposit.
Later, the four individuals started using GPS to track the rented vehicles of customers, heading to places where tourists stayed, damaging the front windshield of the cars when unattended, and then claiming 16,000 yuan in compensation from the renters.
Case records show that the four individuals committed a total of 7 offenses, swindling over 30,000 yuan, with an additional 12,000 yuan in attempted fraud. They were later sentenced to between one year and six months to two years in prison for fraud, and were fined.
Mainland media reports also revealed that some online advertisements for “1 yuan car rental” or “99 yuan luxury car rental” only displayed the rental fees for the vehicles. Customers were required to pay additional insurance fees, service fees, and fees for returning the vehicle to a different location when picking up the car. Some businesses even forcefully promoted expensive protection services.
According to a car rental risk alert, some businesses would claim that the reserved car model was sold out, forcing customers to pay more to switch to another model. Furthermore, some businesses made purchasing in-store protection services a condition for handing over the vehicle, and would not release the vehicle if the services were not purchased.
The alert also stated that some businesses did not clearly disclose mileage limits and restricted zones beforehand. Customers would only be informed of high fees after exceeding the mileage or entering forbidden areas.
Some car rental companies packaged their self-initiated “worry-free protection” and “exclusive services” as “insurance,” using phrases like “comprehensive insurance coverage” and “worry-free claims.”
These services are not insurance products provided by insurance companies; the scope of coverage, liability conditions, and compensation amounts are all determined by the car rental companies. Even if customers purchase the so-called “comprehensive insurance,” they may still face denial of claims or only receive partial compensation in case of vehicle damage.
The related news has triggered public doubts about the irregular practices in the car rental industry. A Weibo user stated that low-priced advertisements may not include insurance and service fees; consumers should verify all costs and take videos during pickup and return to have evidence, saying, “Don’t completely entrust the vehicle inspection to the business.”