Travel Troubleshooter: Budget in Sioux Falls bills $2,133 for hail damage that never happened

After a customer returns her rental car, the company bills her for hail damage. But there was no hailstorm.

By Christopher Elliott/Travel Troubleshooter

August 4, 2023 at 12:50PM
Downtown Sioux Falls, S.D. (Travel South Dakota/The Minnesota Star Tribune)


Q: I rented a car from Budget in Sioux Falls, S.D., and then drove to Montana. I returned the car, undamaged, to the same Budget location a week later.

A few weeks later, I received a claim for hail damage from PurCo Fleet Services on behalf of Budget, asking for $2,133 to repair hail damage.

PurCo claims that there was a hailstorm in Sioux Falls while we were there. There was no storm at that time or at any other time during our trip. I have proven that by sending PurCo weather reports, but they will not listen.

Budget and PurCo have since added other damage to the body shop report. They sent blurry photos with the damage mysteriously masked by the reflection of an overhead light. Please help us.

A: Something's not right. Budget should have talked to you about any potential damage when you returned the car — if, indeed, the car got pelted with hail while you had it. Waiting until weeks later to report the damage to you makes me suspicious. But the fact that there was no recorded hailstorm in your area, plus the blurry photos, makes me deeply suspicious.

You say you were only in Sioux Falls briefly and then drove to Montana. You sent documentation that showed the weather along your route was clear. Reviewing the car's GPS records would have confirmed your story.

You should always take "before" and "after" photos of your rental car to verify that the car wasn't damaged. You should also ask a rental company representative to do a quick inspection and sign off on the car when you return it. Hail damage is not difficult to spot, so if there was a problem, you could have filled out a claim form on the spot.

By the way, if you have auto or travel insurance, it would probably cover hail damage. You wouldn't have been on the hook for $2,133.

Let me be clear: If you drive a rental car in a hailstorm, you're responsible for any damage. But the rental company has to process the damage claim in a timely way. And the photos should have been clear and time-stamped.

I asked Budget about the claim. A few days later, you received a letter from the company saying that you had been added to its Do Not Rent list.

A week later, Budget contacted you again. This time, a manager told you that Budget would close your claim, which means you will not have to pay the repair bill. Your name has been removed from the Do Not Rent list, as well.

Christopher Elliott is the founder of Elliott Advocacy, a nonprofit consumer organization. Contact him at elliott.org/help or chris@elliott.org.

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