Ace American Class Action: Rental Car Insurer Charges Hidden Fees

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Ace American Insurance Co. has been hit with a class action lawsuit accusing the insurance company of violating Florida law by imposing hidden charges and sales tax on consumers who opt to purchase insurance when renting cars at Florida airports.

According to the Ace American Insurance class action lawsuit, plaintiff Stephen Morgan reserved a rental car through Avis Rent A Car at the Jacksonville International Airport.

He agreed to a three-day rental and agreed to purchase optional insurance products through Ace. Morgan says that the rate for the optional insurance coverage for a three-day rental was advertised as costing $64.14.

However, an 11.11 percent airport concession recovery fee was allegedly applied to the cost of the optional insurance coverage and added to the total transaction cost, according to the rental car insurance class action lawsuit.

Morgan states that his rental receipt “cryptically” fails to disclose information about the airport concession recovery fee and includes nothing about this fee being added to the cost of insurance.

Airport concession recovery fees (or CRFs) are often added to the price of car rentals and other services offered at airports to help vendors recoup the concession fees they are charged by airport management.

“This action does not challenge charging fees (such as CRF) for mere overhead recovery,” Morgan alleges in the rental car insurance class action lawsuit. “But this action does challenge Defendant adding CRF to the advertised rates and rates specified in the policy and fixed by the insurer for Optional Insurance coverages, and thereby violating Florida law and unfairly overcharging its customers.”

Morgan claims that Ace has improperly been adding airport concession recovery fees to the insurance charges for cars rented at Florida airports and charging sales tax on those fees without informing consumers about these charges.

According to the Ace American Insurance class action lawsuit, Morgan was overcharged, “both because Defendant unfairly imposed a CRF and sales tax on the increased price of the optional insurance products, and because Defendant deceptively and unfairly misrepresented the actual cost of the optional insurance.”

Morgan seeks to represent a Class of consumers who purchased optional insurance on a rental car from an appointed agent of Ace American Insurance and who incurred additional charges and/or sales tax in excess of the advertised premiums specified by the company for the optional insurance coverage.

The Ace American Insurance class action lawsuit asserts claims of unjust enrichment, breach of contract, disgorgement and restitution, intentional and/or negligent overcharge of premiums and sales tax, and violations of the Florida Deceptive and Unfair Trade Practices Act.

Morgan seeks actual damages, statutory damages, nominal damages, punitive damages, injunctive relief and other appropriate equitable relief, plus attorneys’ fees and costs. He has demanded a trial by jury.

Morgan is represented by Edmund A. Normand of Normand Law PLLC.

The Ace American Insurance Hidden Fees Class Action Lawsuit is Stephen Morgan v. Ace American Insurance Co., Case No. 3:16-cv-00705, in the U.S. District Court for the Middle District of Florida.

UPDATE: On April 16, 2019, the plaintiff attempted to keep his Avis and Ace American Insurance illegal fees class action lawsuit alive, after the companies motioned to dismiss the case.