Renting a car in the Azores led to a magical day and nearly a nightmare – and it was all my fault.
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Easy Car Rental In Ponta Delgada
As part of a heritage trip with my mother-in-law, we found ourselves in the beautiful Azores, the city of Ponta Delgada on the island of São Miguel.
The island is a collapsed volcano, that was settled by the Portuguese in the early 1500s, lush and classic at the same time. We had just four days on the island, more than enough to get out to explore so we rented a car in a foreign country, something we rarely do. It just made more sense in this case than hiring a driver or taking a taxi – there is no Uber in Ponta Delgada (though there is UberEats.)
The top of the volcano has been dormant for so long, that it’s become a pair of twin lagoons and led to some of the most beautiful scenery in the world. We wanted to see it for ourselves and take a look at the rest of the island.
We didn’t explore any of the popular rental car companies for which we have loyalty but rather simply came across a rental car office as we were discussing the notion.
Picking It Up
ANC Holiday Hire had plenty of car types, and affordable rates and was close to our hotel. For €34.99 for a 24-hour rental, we would secure a small car with enough seats to make it workable for the day. They had several types of vehicles but the category we selected was enough for our party.
The one-day car seat rental added €5 and the whole thing came with third-party insurance. I put it on my Chase Sapphire Reserve anyway because I didn’t formally accept nor decline their service product, it was simply part of the rental. Chase Sapphire products include a Collision Damage Waiver which covers the car up to and including totaling the vehicle and is primary, meaning that it doesn’t affect my personal car insurance.
However, I was told the cars were often located off-site 5-10 minutes away at another lot and a shuttle would take me there and bring me back. We were allowed to return it in the city up until 6 PM. After 6 PM we would have to take it to the other lot, which was open until 10 PM.
No reservation was needed as they had plenty of cars, and I should come back in the morning.
When I returned the next day to pick up the car, some of the details had shifted from the previous afternoon. Now, all rentals would originate and conclude at the lot outside the city, there was no in-city return when we came back either. I was again told that the car came with third-party insurance but didn’t flip through my paperwork to see who the third party was. In the example of the Chase Sapphire Reserve, for example, its included travel insurance is run through Chubb not Chase itself. A €500 authorization was made on my credit card in addition to the charge, which would be returned when the car was.
In truth, it was only a 10-minute ride (once the shuttle arrived which took another 10 minutes, and then a 10-minute return to the city center to pick up my family. I think that’s where the real annoyance comes in with the off-location approach, it’s not really 10 minutes, it’s at least 30, allowing for the 4-5 minutes it took to complete the transaction at the pickup location and another 5-10 in the city to start the rental.
At the pickup location, the process was quite easy. A clean but tired manual Peugeot was waiting for me. The attendant took my paperwork, walked around the car, showed me a place on the back left bumper where there was damage but stated it was logged in the system, and gestured to her iPad in her hand.
I was preoccupied with remembering how to drive a stick shift – you never really forget – since it had been a decade. Of course, the first challenge was getting it out of the parking lot with a massive rain gutter that nearly bottomed the car out. Then starting on an incline in the countryside, I shot out onto the highway in between cars doing 80 kmh.
Still got it.
We drove around the island on a misty, cloudy, windy day but still found the emerald green, deep woods, and natural stone cliffs to be beautiful and charming.
In Sete Cidades we cross between the two lagoons on a stone road, before making our way into the beautiful town and finding a gorgeous church. Sadly, we didn’t get the sunny, macro view from above the lagoons due to the weather and difficulty reaching the optimal areas, but the day was not lost.
Genuine safety concerns (and a desire to avoid breaking the law) kept us out of a famously abandoned hotel, but my curiosity nearly got the better of me. Below is a photo I captured from the driveway then a YouTube video others have made.
Returning It
After an early start to the day, 3 hours driving on unfamiliar roads on the beautiful island, a rain-soaked 20-minute walk, and plenty of work calls and meetings throughout – I took a deserved nap in the afternoon. Attending to business matters when I woke up, I ran short on time and at 9:30 at night, we were filling the car back to full and heading back out into the country.
Most of the lights were off when we arrived at about a quarter to 10 PM, a little late but the process was simple.
Two guys came out to look at the paperwork while my wife and I stayed inside out of the rain.
“We have a problem” one of them said. He claimed the damage on the back left panel which the morning before the attendant told me about. I mentioned this to him and he pulled up the image on his computer documenting the prior damage (it was taken in the sunlight) and I compared that to what I found outside.
There was, indeed, a scrape on the back left panel, and that, indeed, did not match the photo. However, I was 100% certain we had not damaged the vehicle. The only time it was out of my sight was during my brief nap, and I happened to take an image of the car then because it was raining and I wanted to pay for parking remotely from the app inside as the kiosk wasn’t working.
The car had gone from their lot, to the front of our hotel to pick up my family, to the wilderness of the island, and back to the front of the hotel where I – by pure coincidence – took a photo that included the back of the car. Had the scrape looked like a tree or bush might have come against it, I may have entertained the notion that I had brushed against something. But this was from another car, likely a white or gray car, and very likely part of the damage already outlined.
I consulted the image again. The image of the agreed upon prior damage stopped short of the area where the scrape was. Therefore, it wasn’t visible. That’s not to say it wasn’t there from the related incident, judging by the other damage, it most likely was. But because the image didn’t include the whole area, it would be easy to understand why these guys thought similar damage in an adjacent area was completely new.
“Do you have photo of the car before you leave?”
Shit. I know better. I could have squashed this all right now because I am 100% certain nothing happened to the vehicle in my care. It would have been so easy to walk around the car for 15 seconds and if I had, I would have been able to pause and zoom and show it had been there all along.
“I don’t but coverage comes with the car, so I don’t really know what else you need from me.”
“Our insurance isn’t on this receipt.” Brace Face said to me. Yeah, we are at the point where they are getting unkind nicknames because it was starting to wreak of a scam.
“The sheet I saw said it was included with every rental.”
“No, our insurance is €19 – that’s not here.” He said. There was some more chit chat, but I was done with the non-sense. I know what I heard, I had witnesses, I know where it was printed on their sales sheet, I want to talk to someone in the city who rented the car and ran my credit card.
“We rented at 10 AM, so we have until 10 AM tomorrow. We will come back.” And with that, my wife and I left for a not-so-quiet ride back to the hotel.
Returning It Again
Bright and early the next morning, I drove the car down to the city office where I paid for the rental. This time, I turned on video from a pair of Ray-Ban Metas while I looked over the sales sheet.
I then asked about the insurance.
“Yes, all rentals come with third-party insurance.” She said.
Gotcha! And now I have it on video!
“Great, because they told me last night that it didn’t.”
“Yes, of course. The third-party insurance covers the other driver. You just pay the costs upfront and then they return your costs to you for the damage to the other person’s car.”
Right…
Third-party as in: ANC is the first party and I am the second party and another driver is a third party. Not insurance provided by a third party, insurance for a third party or what we refer to in the US as “liability” coverage. So I didn’t have any coverage from them on the car. Cool.
Without this sounding like a commercial for Chase, I really have so much confidence in the product that I didn’t allow myself to get riled up. I can be a hothead from time to time though I am working on this aspect of my personality. This is an experience that in many cases would have sent me over the edge. But my thoughts moved to relief because the situation got cleaner and easier. If the car rental facility was going to insist that I committed the damage, then it was good that I had “declined” their coverage for Chase’s to remain primary.
I drove back up into the hills and encountered the same young woman from the prior day. She greeted me with a smile, asked if the car was ok, and then proceeded to walk around with her iPad. She didn’t even stop at the back left area of the bumper but continued on to a door ding that hadn’t been mentioned before nor seen by me or noted by anyone else.
She moved on, and asked for the keys. She saw the gas was full and motioned me inside. Once there, she reversed the €500 authorization, handed me a receipt to that effect, thanked me for my business, and called the shuttle driver over.
Phew, that was close.
Conclusion
Luckily, I never really faced any real danger due to all of my insurance coverages that would have applied for the vehicle, but more than anything else, I have myself to blame. It would have cost me zero dollars and taken less than half a minute to avoid even spending a moment more than I had to on this car rental. Truthfully, it could have been an honest mistake but it felt like a scam or an attempted scam. I could be wrong, but the two of them never pulled the vehicle into the garage to take a closer look under the light. They left it out in the dark and the rain, lit solely by their Android phones. I don’t even know how much they would have charged for the damage if they had determined it was our fault. Even then, they clearly aren’t in the habit of fixing the damage they take money for, otherwise the prior markings and documentation would have been unnecessary. For brands of major car hire, Azores, Portugal represents an opportunity to conduct honest business.
I haven’t filmed or photographed a rental car before leaving the lot in a long time. Even as a formal rental car employee and I know better. Even though the coverage would have protected me financially, the inconvenience of dealing with it was still unwanted. I knew better but we all make mistakes. I bet it’s a while before I repeat this one, though.
What do you think? Was this a scam, or genuine?
Perhaps it is because of my inate caution to Avoid becoming cheated , or desire to Not have conversations with anyone who can transmit a virus, or my disabilities , BUT I always hire a driver and car through my hotel , and have it charged to my room at the hotel .
I am Not going to take Any chances with any fast-talkers .
@Alert: I do exactly what you described in big cities where I don’t need a car. I have hired personal drivers in Rome, Milan, Amalfi Coast, Athens, London, Paris, Amsterdam, etc… to drive my family to and from the airport. Now, if I want to visit small towns, I drive myself and always get full insurance no matter what.
@Santastico … +1 .
I never buy car hire insurance. For £95 ($120), I have annual car hire insurance which covers me for two (co-habiting) drivers and unlimited hires (maximum 60 days per hire) for every country on the planet.
I’m a fairly frequent visitor to São Miguel and stay in Ribiera Grande on the north side of the island.
For car hire I always use the TAP site, you don’t need to fly with them to book but coming from Europe you almost always end up flying TAP to get there. I’ve found the cheapest rentals there consistently over time, usually with Wayzor who I’ve never come across anywhere else but their operation at PDL is slick and professional. They get five stars from me and it’s on airport pick up and drop off.
Please do not be cheap while renting car in Europe. It is not worth the hassle. Always, always pay for full insurance. Why waste precious time with your family worrying about a car that is not yours? Taking pictures or videos of a rental card?
Can’t afford it? Stay home. Seriously, don’t ruin your vacation for being cheap. I have been renting cars in Europe for over 10 years and every single time there is something they find in the car when I return. It is a cultural scam. Just last summer, rented a BMW M series from Sixt. The car had 3 pages of disclosures of previous damage. Yes, 3 pages. I paid for full insurance and guess what? When I returned the car they found “new scratches” on the wheels. I know I never scratched the wheels but I smiled at the guy and reminded him I had full insurance. Deal with it. Walked away to catch my flight. BTW, having Chase cards or your personal insurance from the US means absolutely nothing in places like Italy. Thus, don’t be cheap and avoid a huge headache.
@Santastico … +1 . Even in USA I have Full insurance , including large uninsured or underinsured motorists , and an umbrella policy . As you wisely wrote : “Please do not be cheap” …
I only rent from National in the US. Never, ever had a single issue. They don’t care about small dings, dents, scratches so the process is always pain free. I think the rental business in the US is about volume so they won’t bother scamming customers. I never get insurance from the rental company in the US. Credit card coverage and personal insurance does the trick. Now, in a different country it is a different story.
Not so. AMEX insurance is more than enough with any hire car in Europe and if you don’t have that there are plenty of insurers who will cover you for rentals of up to 31 days at a time for a fraction of the price the rental companies will charge but you need to buy in the country of your residence.
@James Harper: you are incorrect. Rental in Italy is never covered by credit cards . From the Amex page:
“This product provides secondary coverage and does not include liability coverage.
Not all vehicle types or rentals are covered.
Coverage is not available for vehicles rented in Australia, Italy, and New Zealand.”
Also, having to deal with third party insurance is a hassle. If I am on vacation with my family, the last thing I want is to waste time with insurance. See my example above. “New scratches on the wheel of a car with already 3 pages of discloses damages? I have full insurance. Have a good day.l
https://global.americanexpress.com/card-benefits/detail/car-rental-insurance/platinum#:~:text=include%20liability%20coverage.-,Not%20all%20vehicle%20types%20or%20rentals%20are%20covered.,maximum%20of%20%245%2C000%20per%20person.
@Santastico … In USA my SUV has full insurance and I have an attorney , so when I was rear-ended , I told the guy I follow the rules and my attorney will deal with it . Like you , when Overseas I don’t risk any hassle and I just pay for the hotel car and driver . Overseas they are all in cahoots , and in USA they are mostly in cahoots ; so I trust only my attorney to sort it out .
You lost me when you said you rented with Sixt.
@Santastico – To be clear, when they said “insurance included” and I put it on my Chase – that for me was more than covering my bases. Had I understood that third-party was basically liability for someone else, I absolutely would have bought it. They missed a sale, but it wasn’t a matter of being cheap. It was a misunderstanding of “insurance included” in a highly touristed area.
Santastico
March 17, 2024 at 6:11 pm
There may be a difference between AMEX cards issued in the US and Europe, European ones don’t exclude Italy.
Scam
Same thing happened to me in LHR – Holiday Inn Heathrow where the car rental office is at the back of the hotel.
They took a small scratch on the edge of a door that was obviously old and charged me 500$
Edinburgh was worse.
Interestingly, Cornwall was much better – we had a wheel scratch from a stone on side of door and he said – “narrow roads here right?”
When renting a car in Scotland, our travel agent insisted we choose the full insurance coverage option over relying on Amex. This was the first time we elected for the insurance.
I scrapped one wheel of a brand new Volvo. Had to argue a bit but as soon as the agent realized we had their insurance, we were sent on our way. I will always elect insurance outside of the US from now on.
Two rookie mistakes, Matthew needs to give you a serious pep talk.
You as a travel agent don’t know better?
Not sure if customers should have faith in trusting an agent who are supposed to prevent rookie mistakes for them, not making them.
Third party insurance is already the official term. Just reading the first few paragraphs already made me confused then to realize you had no idea what third party means.
And even going along with your understanding, there would be no first party insurance you ever heard of right? You know anyone rented a car from All-State, or GEICO?
Then there is the taking pictures of the rental. Outside of the major brands from a corporate location in US or Canada, take pictures.
And by the way, most car rental insurance is a scam. They take your money for repairs but never repair anything. Anyone who don’t buy coverage is a mark.