Do You Have Accident Recovery Solutions in Place?
As a rental agency, what do you do when you rent a vehicle out, and the renter has an accident? What accident recovery services do you have in place? After all, there’s always the possibility that the car you rented out could get severely damaged, even totaled.
Of course, if the renter has purchased the insurance that you offer, these are easy questions to answer. You simply make the accident claim against that insurance policy. That company will pay out the damages.
This becomes a slightly stickier problem if the renter opts out of the insurance that you offer. Many times, this is exactly what renters will do. They assume that because they have their own personal auto insurance, that will cover them in the event of an accident in a rental vehicle. That very well may be true. However, it’s not always the case. As the rental company, it is your responsibility to be sure that your renters have adequate insurance to cover losses to rental vehicles.
Here are some tips that you can use to be sure you won’t have to take a hit on damages done to your vehicles:
– Every time a renter comes in, even if they are a regular, check to be sure they have a valid driver’s license.
– Check renters’ addresses every time they rent. If they have an accident and you don’t have a valid address on file for them, you will have to bear the responsibility and cost for trying to find them to collect damage. Renters must also pay fees, including administration and loss of use fees. But you can only collect if you can find them to bill them.
– Check renters’ insurance information, every time they come in to rent. It’s not uncommon for a renter to buy insurance so they get the card, and then let the insurance lapse. If they have an accident without any insurance, you may be responsible for the damages.
– Be sure renters’ insurance includes collision coverage. Most rental agencies require that renters’ insurance has this provision, or they will be required to purchase the insurance from the agency. You won’t know for sure if they have collision coverage unless you check.
Accidents Can Cost You Big Money
As the rental agency, you can sue renters for accident recovery fees. However, if you can’t find the renter, or they have no insurance, you will have to pay for the damages or purchase a new vehicle. This can cost you hundreds of thousands of dollars a year.
You may be thinking that finding all of this out takes too much time, and it will increase line length and customer complaints. While this may be true, finding out all of this information can save you money in your accident recovery efforts.
Need help making sure your renters are adequately covered? Reach out to Bluebird today. We can help!