If this is the case then you have National dead to rights. If you try to decline insurance with this code and they say no you can't but still allow you to leave the lot under this contract (even though people say you are not authorized) and you get into an accident how can they have a case in court?
Judge: So National, you say that you won't cover the insurance even though it was included in the contract?
National: Yes your honor, the person in question was not authorized to use this code.
Judge: But you let them leave the lot using this code?
National: Yes your honor, it was very busy and it slipped by us.
Judge:
National:
Judge:
National:
Judge: If you let them leave under this code, you have accepted the conditions of this driver under this code.
National:
YOU:
Your scenario is interesting, but not accurate. The renter enters into a contract with the rental car company. The renter is is representing they are authorized for the rate, and they sign for it. Rental car companies don't need to absolutely verify eligibility of a renter for a rate code beyond a shadow of a doubt before driving off the lot, they have the renter's signature on the contract. If the renter signs for an unauthorized rate, or provides any other misrepresentation, it's simple for National to then prove misuse/misrepresentation and then decline coverage for an accident or other problem. (Those terms are spelled out in every rental car contract.)