Sixt Rent-A-Car, LLC and National Casualty Company sell insurance policies to car renters for prices “far in excess” of the actual premium paid by Sixt to NCC, according to a proposed class action.
Per the complaint, Sixt represents to renters that the entire premium cost for its Supplemental Liability Excess (SLI) policies will be passed on to third-party insurer NCC without disclosing that the rental agency obtains insurance through a group policy that costs the defendant “a tiny fraction” of the price charged to consumers.
According to the case out of Florida district court, the premiums paid by renters to Sixt and not passed on to NCC constitute a hidden profit center that remains undisclosed to consumers.
The plaintiff says she rented a Sixt vehicle between July 21 and July 22, 2020 and paid $15.99 per day for SLI coverage. The charge was noted on Sixt’s standard form Face Page contract, which the plaintiff electronically signed when picking up her vehicle, according to the suit. Only after signing the contract was the plaintiff given access to Sixt’s Rental Jacket Terms and Conditions, which had no place for the woman to sign, the case adds.
According to the lawsuit, the NCC SLI group policy purchased by Sixt does not allow either party to charge a higher or lower rate than the premium rate contained in the policy. Nevertheless, Sixt, the suit alleges, “deceptively charged and collected significantly higher premiums” than the rate stated in the policy, which the case estimates comes out to as little as $2.50 per day.
Per the complaint, the defendants’ “unfair and deceptive self-enrichment scheme” has injured renters to the tune of millions of dollars.
The lawsuit proposes two classes, seeking to cover both U.S. and Florida consumers who rented a vehicle from Sixt through a contract that included an NCC SLI policy at a daily rate.
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