Vishal Patel, a resident of Scarborough, found himself in a major financial predicament after the rental car he used during the summer suffered severe damage from a hailstorm the size of baseballs while on a trip with friends to Banff, Alberta.

Details of the Incident

In August, Patel rented a car from Alamo while visiting Saskatchewan. However, on the fifth day of the trip, a hailstorm hit the area, shattering the front and back windshields and causing significant damage to the vehicle's structure.

The storm, which affected the Calgary area, was the second costliest natural disaster in Canadian history, with compensation costs amounting to approximately $2.8 billion.

The Surprise Bill

Upon returning the car to the company, Patel was asked to pay a $500 deductible, with a promise to settle the remaining amount with the insurance company. However, after a month and a half, Patel received a bill for $18,000 to cover the damage costs, as he did not have insurance that covered rental cars from his company or credit card, and he did not purchase additional insurance from the rental company.

Experts' Reactions

Anne Marie Thomas from the Canadian Insurance Bureau explained that personal car insurance or credit cards may cover damage incurred while renting a car, provided that additional coverage is bought in advance.

Enterprise Mobility, the owner of Alamo, also confirmed that the customer is responsible for damages that occur during the rental period according to the contract, adding that the estimated repairs for the car were about $18,000 but it was sold “as is” due to the extent of the damage.

Financial Predicament

Patel is now being pursued by a debt collection agency for payment. Patel says: “I can't pay this amount. It’s too much for someone struggling financially like me.”

Tips to Avoid Such Situations:

• Check your personal car insurance or credit card coverage before renting a car.

• Purchase additional insurance when renting if you do not have adequate coverage.

• Read the rental agreement terms carefully to understand your financial responsibilities in the event of damages.