Automotive Risk Management & Insurance Services, Inc.
 
Insuring Auto Rental Operations                                    December 4, 2008
In This Issue
Auto Rental Operations
Liability Limits
Deductibles
Auto Coverage
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Auto Rental Operations 
It is important to realize that information to the right only provides coverage while the vehicles are rented. The operation has premises exposures, employee and perhaps faimily member driving exposure and many of these operations have a used car dealer license. With this in mind, we recommend that you provide them with a Garage liability policy. They may also need Crime, EPLI Coverage, Pollution Liability, Property and a Physical Damage policy to provide open lot coverage, particularly on the weekends when many of the vehicles are not rented. 
Greetings!
 
Typically the policies provided Auto Rental operations provide coverage to the owner of an auto rented to others for short periods of time (i.e. daily, weekly, monthly) and pay for 3rd party liability resulting from an accident involving the rentee.
Liability Limits
 
Liability limits afforded to the owner can range from statutory limits to $1,000,000 CSL, or higher, with PIP and/or UM coverage provided if mandated.  Minimum statutory limits are afforded, where required, to the rentee.

 
 
Deductibles
 
Physical Damage coverage - comprehensive and collision - is also available with deductibles typically offered of $1000 per occurrence, $25,000 maximum limit per vehicle.

 
Auto Coverage
 
Autos are scheduled for coverage on a monthly report with premiums billed at a rate per car per month (pcpm).  Changes to the fleet schedule, whether additions and/or deletions, must be  reported as they occur.
 
Let us help you with the next rental account that crosses your desk as well as all your other garage operation needs! 
 
Sincerely,
 
 MEM Signature
 
 

Marvin E. Mcdougal, President
Automotive Risk Management

Phone: (800) 224-6363
Skype: marvin.e.mcdougal 

 
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