Fees & surcharges · Travelers
Damage administration fee
Also called admin fee, claims handling fee, damage processing fee
The short answerA fee for handling a damage claim, charged on top of the repair cost.
What it means
A damage administration fee covers the rental company's cost of processing a damage claim: inspection, paperwork and dealing with repairers and insurers. It's usually a fixed amount or a percentage of the repair cost. Some US states limit it; California, for example, caps it by the size of the repair bill.
Why it matters
It can apply even to small damage. Check whether your cover includes it, and whether the rental agreement states the amount.
Related terms
- Loss of useA charge for the rental income lost while a damaged car is off the road being repaired.
- Diminished valueA claim for the drop in a car's resale value because it's been in an accident, even after repair.
Also related Administrative fee, Repair estimate, Damage dispute