The Ultimate Insurance Webinar (Must Watch!)

We finally did what everybody's been asking for and we created a webinar. It's about an hour and a half where we talk about the insurance process. Everyone wants to know about direct rentals, rideshare rentals, how do you make sure that you're covered. In this webinar, we talk about every step and thing that you need, whether you're a two-car fleet, a 400 car fleet, it doesn't matter. Anything between, we want to make sure that you're covered. I hope you enjoy. In this webinar, again, we're going to talk about insurance. Probably one of the biggest things we want to know is rideshare rentals, which were incorporated a ton into this. Outside of that, we're going to talk about direct rentals and how Turo works. There's kind of a misconception about how insurance works in general and so we're going to put a lot of that to rest, hopefully. Again, for those of you who don't know, my name is Max. I started my car rental company with my brother about five years ago. We grew to where it is today with about 300 cars and we started with one cash car and slowly grew it and now we are where we are today. A couple locations and it's been great. It's been a great journey so far. So, starting in 21, we started with Turo. As most of you know, we started with our own cash cars and it was going really well and then at about 100 cars, Turo kicked us off. We never really found out why, we had speculation. So, got kicked off of Turo, decided to move into rideshare rentals, which, in our opinion, was a lot more consistent, easier to manage. Since then, we've just been scaling direct rentals and doing rideshare. A lot of managed vehicles, a lot of owned vehicles and today we're managing, it's kind of like a hodgepodge mix of things that a lot of people talk about wanting to do, which is rentals. We have a body mechanical shop. We have a dealership that sells to the rentals and a couple other things. So, we will go into that a little bit. Here are a couple examples of accidents that we've had. So, total loss is, you know, it's going to happen. It's kind of inevitable. It kind of sucks when it happens. I think at the beginning, you're a lot more nervous about accidents because you don't know how the process works. So, hopefully, we're going to put a lot of that to rest and then we have had super high-end cars totaled. This Ferrari, actually, that was totaled. We had that car for a month. Somebody let us rent it out for them, had it for one month and then somebody totaled it, drifted a corner, hit the side passenger back wheel and it completely destroyed the entire suspension system and it was like $230,000 in damage at the time. The car is only worth like $280,000. Now, that exact car, I don't know if you guys follow Ferraris, this exact car is worth like $350,000, which is insane. There's a lot of parts about insurance that I want to talk about and honestly, I think insurance doesn't have to be like a super negative thing and it's really hard in the beginning because you're doing direct rentals and it is just challenging because you just don't know the steps, you don't know if you're covered. A lot of people don't know if they're covered when they transition into direct rentals, which is a lot of what this webinar talks about and there's different kinds of insurance, there's different kinds of periods, there's different kinds of like things you need to have in your rental contracts and so we're going to talk about a ton of that in this webinar. Big things you need to think about when a car gets into an accident is who's driving, what happened and then when it happened. So, all these things are things that the insurance company is going to ask for, whether it was Turo, whether it's direct rental, ride share, it does not matter. The insurance companies are going to ask these questions and we actually have a slide that we're going to show that'll give you the exact information that you should have in order to give to the insurance company because I don't know if you guys have gone through a claim before but it doesn't, I mean it's kind of invasive but there's a lot of questions that they ask and so you need to be honestly overly prepared. So, what we're going to talk about is we're going to talk about Turo insurance, which we're not going to make it super long, I know a lot of people probably already know about this, protection plans, how you're covered, off-trip insurance. There's actually a huge misconception about Turo and people think that Turo is their off-trip and on-trip insurance, completely wrong and Turo can't be your only primary source of insurance, you have to have off-trip coverage. Most platforms, most commercial insurances require you to have off-trip and Turo is not an exception to that and if you don't then you're not going to get on-trip coverage, meaning when the renter has it, so that's super vital. If you're in this webinar right now and you don't have any insurance and you rent your cars on Turo, big mistake, like that can be crucial. It's pretty rare that they ask for it but it only takes them one time to ask for it. Another problem that people run into is they get personal insurance. Risky, really risky because your insurance company is going to find out at some point and they're going to cancel your rates or not your rates, your entire premium or your policy. Second is we're going to talk about private rentals or direct rentals, there's a couple names for it. We're going to talk about the kind of exposure, the kind of insurance, how to vet insurance, we're going to talk about protection products and like companies you can with to sell insurance. This is probably why 70% of you guys are here to find out how you can actually sell insurance to drivers and who you can sell it through and then we're going to talk about rideshare. Rideshare in itself is a completely different animal than all of this. There's different periods that people are on which I'm going to explain and the coverage completely depends on what the rental is doing or what the renter is doing and then we're going to talk about the claim process. So first insurance versus protection, there's quite a big difference when you have insurance that's going to be liability, comprehensive collision. Typically this is something that either the renter has or you're selling to them through a third-party supplemental company which we'll get to a little later and then there's protection plans which protection plan would be similar to Turo or any other platform really where it's both parties are paying for this idea of protection. I actually really hate this concept because when I was renting out on platforms I just kept thinking while I'm paying for it, the guest is paying for it, we both have deductibles which is super uncommon because typically there's one insurance that covers on trip and there's not two people paying for it, two people paying for deductibles, that's super rare. So the fact that that's a thing was super frustrating me. I felt like they were double dipping. Five main things to consider when going through an insurance claim is who owns the asset. This is actually really important for if you guys have vehicle owners or you manage other people's cars, this is something the insurance company could ask for is proof of ownership. Rental operator who actually is doing the transaction which if you're giving your car to somebody else to manage then that's really important as well. Authorized driver who has ability to drive the car, this is super important we're going to talk about this a little later. We're going to talk about insurance carrier and protection providers, we're going to talk about the different platforms so Turo, Uber, Lyft and other marketplaces. I mean they're kind of similar in a way so we're going to go over that. So essentially there's two kinds of insurance so there's liability which is could be called liability RCLI and essentially this is covering not your car. So this is covering the other person's car or it could be covering the renter's medical expenses and I'll say one thing that if you're selling insurance to an on-trip renter and you have to choose between RCLI or liability only or physical damage which is typically called CDW, if you had to choose between those two I would always go with liability the only reason because if anything happens to the other driver and there's no liability insurance then technically they can rope you into a lawsuit. I mean it's pretty rare that they win a lawsuit against a rental company there's something called the Graves Amendment. I didn't add that to this because there's not too much to talk about. Graves Amendment which essentially protects rental companies so if somebody gets in an accident in my car I'm protected by this this amendment created because somebody can't just sue a rental company just because they get in an accident in your car now whether they hit somebody kill somebody it doesn't really matter. Now the one thing to consider the only way that people can really bypass the Graves Amendment is and it's super rare is something called mechanical negligence so this means that somebody has to be driving your car your car has to be like there has to be something wrong with it and I'll give you a quick example let's say you have brakes are completely shot you don't have brakes in your car somebody's driving they can't slam on their brakes because their brakes are shot and they hit somebody and like injure them now that would be considered mechanical negligence because you were at fault like the rental company didn't keep up with maintenance on the car and so technically they're at fault now in the rental contract if they said that the renter was supposed to do it then it could be a little bit of he said she said but it's it's kind of like a gray area so you always want to be maintaining your cars it's kind of the main point that I'm trying to make right now if you don't you want to have like super good reasoning on why you shouldn't be which would be on the renter which is super rare most of the time that you're going to cover it this is why we need to be doing inspections as well second is physical damage which is comp and collision so this is going to cover collision theft vandalism and total loss so again typically when you combine both of these it's called full coverage which is liability and then comp and collision so rcli and then cdw added together you get full coverage good to good to know because again if you're going to choose one of the two always choose liability a lot of people get really frustrated with the deductibles which I completely understand I think on a platform when the host has to pay and the renter has to pay that to me is like extremely frustrating which actually not all platforms do only like protection plan you know what I'm saying like only people that do protection plans do that so typically when a car gets into an accident you're paying a deductible and then they're going to pay out for damages minus deductible if your car is totaled they'll pay out the acv which is called actual cash value minus deductible which is 2,500 now if you're on toro you can't get reimbursed for the 2,500 if you're doing direct rentals you can try I mean it's not common that you'd have a 2,500 deductible as a host if it's their insurance policy then they're the owners paying like the renters paying their deductible so it's not super common that you're paying deductible but when it does happen it's kind of frustrating another example is if your car gets into an accident on uber lyft you are paying a deductible so that 2,500 is going to come out and it's probably 50 50 that it happens if it's somebody else's fault like somebody hits your renter never are you going to pay deductible unless it's going through uber lyft and then if you're going through your insurance I mean you can have the renter try to pay but a lot of times it's hard to get that reimburse so you're going to absorb that cost it's just a part of the business anything under deductible you're going to have covered as well I will I want to make one note really quickly so people that do like 60 40 protection plans and have I think it's a zero dollar deductible maybe it's 250 and they do like windshields they do tires they they get reimbursed for everything sure that's kind of like what it's meant for but I've seen more people kicked off of platforms because they I mean I wouldn't consider taking advantage but I guess they do everything's based on loss runs so if the insurance company can't be profitable that includes platforms they'll kick you off because they're not making money on insurance so when somebody says that a car is insured whether it's a platform or a person or whoever there's a lot of things to consider like insurance isn't one thing said and done there's so many variables that are attached to it like what's it what's insured for who's insured what period is it insured for what kind of insurance is it liability comp collision are there any exclusions I don't know if you guys have ever done any direct rentals but when you do and you verify with the insurance company there's I mean there's times there's exclusions now solutions can be make and model so maybe some insurance carriers will say we don't cover ferrari or lamborghini some will say modifications this is very common so they'll say we don't cover any modifications of cars so that has an exhaust or a you know bigger engine or something the insurance companies won't cover it but most of the time exclusions come from commercial use value is pretty rare because they'll do actual cash value so it's typically modifications to cars or commercial use so the two main exclusions that I'm going to talk about how we can solve that a little bit you guys already know toro creates their bundle like protection plans which I don't know I don't I'm not like the biggest fan of third-party liability of 750 uh comp and collision and then host responsibilities out of pocket for 2500 and then anything under or depending on what plan you are it could be less so here's like an example of it 70 250 is this all they have now 70 250 80 1500 90 percent 2700 or 2750 when we were on the platform we only did 90 10 that's it because we did the math 100 different ways and we always came to the conclusion that's 90 10 is like most profitable all trips u.s protected whatever like they they have their their own rules now I've seen denials on on toro for a handful of reasons uh we can talk about that a little later but I mean toro is pretty simple I again I don't want to I don't want to talk about toro too much booking protection trip incident claim resolution I will say the tough part about toro that we had when we were on the platform is the documentation had to be perfect if we didn't have before photos claim had to be made on time like it's such a small window which is not very common like you can call an insurance company weeks later months later as long as you have the right documentation it doesn't really matter I mean there is a window but it's not uh like 24 hours or or whatever like there's there's such a small window um and then not every dollar is automatically covered that's so true I mean there's so many times you have to submit a supplement because they don't cover the entire thing I'm sure a lot of you guys have had good experiences but I promise that once you get volume you're gonna have some bad experiences uh and then you miss something something bad happens you could not have uh any exposure which is super super scary and I've heard tons of stories of people not having things covered okay so let's talk about leaving toro and what you need to do so this is probably why a lot of you guys are here what do I need in order to do direct rentals or ride to rent maybe you have some of the pieces but you don't want everything so we're going to talk about what that looks like uh driver driver screening so background checks rental agreement and disclosures which we're going to go over in a little bit uh insurance verification if you're not selling insurance uh protection and damage waiver and the structure of how that's going to look uh payments and deposits which is super important because if it's small damage we can take from the deposit it's big damage when we go through insurance uh accident intake the evidence collection this is like vital this is so important to get right away uh claim reporting follow-up recovery we're going to talk about that um and then compliance with state uh and insurance rules which it's not really complex I mean insurance companies are fairly easy to work with people think that doing direct rentals means I'm not insured and that's actually not true because and we're going to talk about it uh a lot of the time when you're renting to somebody they're gonna have their own insurance unless you do rideshare rentals then a lot of people will not have their own insurance but when somebody has their own insurance 90% of the time it's going to transfer over to a rental and we're going to talk about how you can verify that um so when you're doing direct rentals you kind of have like a stack and we're gonna I'm going to show you the exact stack that we have in order to uh make sure that the cars are covered direct rental insurance stack is commercial insurance which is your off-trip insurance you have renter's insurance or you sell them insurance so it's either uh so we have our off-trip all day long and then either the renter has insurance or we sell them insurance there's no in between they have to be covered on trip whether we give them the policy or they have their own rental agreement which is vital your insurance will ask for rental agreement their insurance like your renter's insurance will ask for an agreement other party hits your driver they probably won't almost never so two out of three instances so 66 percent of the time they're going to ask for rental contract protection products which is what I kind of mentioned you selling insurance and then claim process how do you prove and report this to the insurance companies now I want to say one thing the biggest benefit of doing direct rentals is the fact that you don't need the process to be perfect like when you're on a platform they expect you to take perfect before photos perfect after photos or else they're not covered uh well I forgot to take like this one quarter panel and it looks kind of weird and light uh okay now I'm not covered that's not how insurance companies work like the insurance company is going to ask for certain documentation like police report after photos and um like estimate and then demand letter and then like you're going to be covered they're going to call the other the people in the accident and verify the information but there's no question there's no before photos like platforms make this huge uh process out of like they they created this their own arbitrary process and I think the reason is is because they didn't want to want to cover some of the claims because I think that they're self-insuring for part of the insurance process I would bet that they have liability covered from big carriers and then they self-insure for common collision and that's what they're paying out most times they're not trying to cover it so commercial rental coverage it's again super variable so there's tons of different ways that it's written and this is like your insurance policy like if you have Tint or GMI or Romely or uh Lula is out of business obviously but ABI is another one um some allow things and some don't and I'm gonna give a quick example so uh Lula I'm pretty sure they didn't allow any direct rentals doesn't matter anymore GMI allows direct rentals they don't allow you to do rideshare rentals Romely allows you to do direct rentals and it allows you to do rideshare now keep in mind when I'm saying this I'm not saying that they're going to cover on trip they're going to cover off trip but they allow you they say okay you can do it it's fine uh personal any personal insurance 99.9% of the time unless you have a special letter they don't cover uh any direct they won't let you do direct rentals okay very important uh ABI lets you do rideshare direct rentals everything so know who oh Tint I don't think they let you do direct I don't think they let you do rideshare so know who your carrier is know the limits if you're dealing with an insurance company for off trip that's what we're talking about right now off trip and they don't let you do either direct rentals or rideshare I mean direct rideshare rentals uh you can't use them you need to find a different carrier because what's going to happen 50-50 I wouldn't take that 50-50 chance I wouldn't flip a coin on it let's talk about on trip there's four different periods that a car could be in an accident so there's period zero which is off trip any leisure driving is going to be off trip or sorry period zero this is on trip so this is when somebody rents your car uh period zero they're going to the grocery store they're going to see their family they're going to to work non-rideshare related okay that's period zero period one is they have the uber and lyft app turned on they haven't done anything with it but they have it on and they're starting to accept rides they haven't accepted one but they can period two is an accepted ride meaning hey I want to take this ride so I can go head over there they're heading over there period three is a passenger is in the car now if you're doing rideshare rentals this is super important it's really important that you understand this know these if you're gonna do rideshare you have to know these periods off trip you kind of already mentioned you have gmi abi romley these are the ones that let you do direct rentals uh abi and romley are the two that let you do rideshare so if you're gonna do rideshare rentals these are like the two you want to have if you want to do private rentals these are the three you want to have if you want to do on trip insurance to sell to drivers there's two there or I mean there's more but like these are the two main ones there's abi and bonza if you need something to sell to them because if you guys are trying to say hey sell me money and I'll get the insurance for you and I'll let you take my car bad really really bad idea you need to have a booking system and you need them to be able to buy it through the system because if you're trying to buy for them it's called brokering insurance and you can get in a lot of trouble for that don't broker insurance don't buy it for the renters they have to buy through a system whether they go on somebody's side or they do through a software ifleet.tech we help build the software they can do it directly through here it's cheaper than going directly through the carriers probably your best bet just because it's cheaper and it's guaranteed like you know that they have coverage what you don't want to happen is you don't want to buy them insurance I know that's like the safe right hey I'm going to just buy them their policy you can't do that that's that's like illegal and if they go and buy it then they may have insurance tomorrow they may not maybe they canceled it maybe they just didn't extend it you don't want to verify that every day so go through software makes it 10 times easier I'll put it in the notes right now you can sign up it's free for 14 days so now let's talk about renters personal insurance so when a renter has their own personal insurance we need to vet that obviously and we're looking at a couple different things we're looking at that they're on the policy they don't have to own the policy they have to be at least added as an insured driver on the policy if they're nowhere to be found on the policy but they just give you a policy that you're they're not covered very risky policy dates obviously has to be like it has to be within the date range if somebody's renting a car and their policy ends tomorrow I'll take it I'll accept it but tomorrow you send me the new policy or bring me the car comprehensive inclusion you don't want somebody to just have liability big risk you want them to have comprehensive inclusion or else your car's not covered they need to upgrade it I don't care make them upgrade it I've had more people upgrade their insurance than I'd care to admit it doesn't matter I don't really care because I need them to be covered if they're not willing to upgrade their insurance then they're buying my insurance when you're verifying somebody's insurance a big mistake people make is them getting insurance on your car I'm explaining this really quickly if somebody gets insurance on your car and says that they own it bad idea so I almost got into one incidence I had a 2010 Prius I mean cheap car I guess it didn't really matter at the time but uh cheap Toyota Prius is like $10,000 car they got an insurance policy on my car that they said that they own they said that they own the car and that's not the risk is the insurance company car gets into an accident they call the insurance company and they're like okay send us this stuff and the insurance company's like wait a minute you don't own this car this policy's for you owning this car and then they're like okay we're not going to cover it I got lucky because it wasn't my driver's fault is the other person's fault and the other person I don't know they didn't verify the coverage or maybe they saw the coverage and said hey they're covered so they're good don't let people buy owner's policy on your car that's why they need to buy a bonza or abi on trip or whatever don't let them buy their own like personal policy on your car if they have this is verifying insurance is them having their own insurance policy that's like on a separate car ride share liberty exclusions they have a personal policy you want to make sure that they can do ride share if you're renting for ride share territory and state restrictions pretty rare it's really like modifications or types of cars which honestly most you guys aren't going to deal with especially if you're doing you're not going to deal with what can go wrong policy's canceled uh driver excluded or not on the policy at all rental use excluded super rare tesla insurance is one of the only ones that I've found other than like small local mom and pop ones that have that ride share excluded very common uh coverage only follows auto own or follows owned autos insurance denies claim after investigation you need to verify insurance or sell them the right kind of insurance sell it I already told you you have to sell through software verify it same thing you go through ifleet you can verify the insurance not try to plug it here but like you need something to verify it and this is the easiest way it's either you do this or like you have to call their insurance all the time and try to verify it I don't want to call their insurance all the time that's why we built this rental agreement okay here we go people I'm not going to give you an actual rental contract but maybe you can screenshot this and put this in a cloud or something here's what you need on the rental contract for insurance specifically authorized robber and prohibited use geographical restrictions actually that's not really insurance thing this is like me not wanting people to go out of state accident reporting requirements we tell people they need to report the accident within 12 hours and give us specific information which I'm going to tell you in a minute damage responsibility and deductible language renters always responsible for deductible whether or not we're really able to get them to pay for time if it's their insurance we're able to get it all the time if it's ours 50 50 loss of use towing storage of course you want to add that in there you don't insurance requirements and proof obviously we're gonna verify their insurance reimbursement language what happens if non-payment abandoned vehicle unauthorized use okay big one this is pretty important stolen car stolen or failure to return language so I'm not going to tell the full story I'll give a shortened version but once we had this lady rent a car it's our first version of a rental contract we gave her it had nothing in there that said if she doesn't pay what happens and so she didn't pay for like four days and we're like okay we gotta go to the cops because like we can't find this so go to the cops and they say show us the contract show us the stolen car code in there I was like what does that even mean they said well in order for us to report it as a stolen car you need to have specific language in your contract if you don't have that good luck because now it's a civil thing and you got to figure that out with her we didn't have that in our contract obviously we were able to get it back the way we're able to get it back I'm not going to discuss in this live so you need to have a way to convert it from a rental car to a stolen car and there needs to be a code there's a specific code in every state sometimes there's multiple but put this in your contract you can look it up on google or chat to add this to every contract title or else somebody's gonna steal your car and your code when you're selling insurance whether you sell through a software you have your own insurance you can sell you need to be pretty careful so I've mentioned earlier that you can't buy people insurance like you can't go on bonza for them and buy their insurance you can sell it through you know iFleet the software but you can't go on bonza and buy it for them that's why their software's like do the integration for you so you don't have to touch it but if you rent directly to somebody and say we sell insurance you can't really do that if you sell your own insurance policy somehow like we can sell insurance but we're very specific on how we say it it's required by the insurance company because unless you're a broker unless you have a broker license which you can't technically sell insurance just like you can't technically buy them insurance unless you have a broker's license you can't do either now is that worth it to get it probably not for anybody here but at some point maybe it is maybe you can get kickback from the insurance carriers and then it will be worth it but you need some volume for that let's talk about some examples of accidents and see if you guys have been paying attention okay john rents a tesla for a week crashes it into another car while driving to dinner first off what period is this number one so that's period zero that means he's doing something completely on his own personal use not commercial use crashes into a car who's at fault who should be paying now this is obviously dependent if you sold him insurance then technically your insurance company would be the one paying it if he has insurance then technically his insurance company would be covering it okay i already kind of mentioned this period zero off app period one on app period two ride accepted period three passenger and car i want you to keep this in mind i'm going to give one quick story just kind of nail this in the head uh we had a car that was in an accident this was probably about a year ago now uh it was on period three at the time i didn't know what it was i just heard hey one of your cars got into a big accident i saw the photos it's actually the first photo that i showed in this presentation like really bad wreck tesla and i thought okay this is this is bad but we're probably fine and then i got a call saying there's investigators going to see the car and they're going to do like a full like investigation on the accident and i said well i've never heard of this before that kind of makes me nervous that sounds like a potential problem like they're maybe they're trying to not take on blame for the for the accident and i didn't know period is on um i at the time this might have been more than a year ago i wasn't sure if i was covered right i was like uh and uh turned out the period three turned out we had the right kind of insurance but we actually got to the point where uh the insurance carrier that we had almost denied it like we got denial letters in the very beginning and then they accepted and it went through but there was like a two-month period where i was like crazy nervous and the reason i was crazy nervous is because i got a letter from the main insurance carrier that covered it on period three and they essentially said here are who here's what the rent uh passenger is demanding because the passengers were the one that filed the insurance claim and it was like it was in the seven figures there's a lot of money uh okay we already went over this period zero period one two period three i think you guys i think you guys have got this okay let's give another scenario john finishes an uber ride goes offline drives to the grocery store gets rear-ended by somebody or he rear-ends somebody excuse me what period is this for those of you said period zero that's right see now that he's offline him being offline now is period zero if he'd stayed online and not turn off the app he'd be on period one okay john is online and available no requests have been accepted yet this is period one okay scenario three john accepts a trip and he crashes before reaching the rider what period is this in this is period two period three is when the passenger is in the car period one is before he's accepted it so this is period two so in a situation like this we're gonna go through uber lyft whatever platform that he's on and they that will be covered from their policy scenario four john crashes during an active trip so he has a passenger in the car which period is this correct period three so passengers in the car lyft or uber is going to cover this scenario number five this one is a hard one john lets his girlfriend use the rental she crashes it what's the problem with this scenario john lets his girlfriend drive the car she crashes it what are some things we got to start thinking about okay so in a scenario like this this is like probably one of the toughest scenarios you could ever be in very rare typically in a scenario like this you need to see if they're on the contract uh you typically can't backlog them onto the contract you could that'd be cool typically you can't uh so what you do is you would try to go through his insurance company and see if they'll cover her now you're gonna see if she has insurance and if she does you're gonna try to go through them but they might not accept it because they uh you know will require a rental contract and she's not on it unless you add her as the authorized driver now in a super rare instance where this isn't covered because and this has happened on platforms before like this isn't just a direct rental thing this could happen like literally at any point you have to sue the driver you have to sue the driver who was primarily responsible for making sure that unauthorized drivers don't get in the car an alternative you could try to do because i always try to go through the insurance companies like a hundred percent of the time which i've had a lot of success with is you can technically even though this insurance company won't accept it you can i mean you could try to go through your insurance probably won't cover unless you have like supplemental off trip which not many people have you could have your insurance company subrogate which means sue his insurance company this strategy doesn't always work it's actually not it's good because it's like okay it's either they cover it or i'm going to court i'd rather have them cover it okay scenario six a lot of scenarios i'm trying to make sure that this is imprinted in your guys's brain somebody steals the vehicle what period is this on if a car gets stolen it depends on where it's stolen so if it's stolen on your lot before you even rent it then you're going to go through your insurance carrier and it's going to be uh pushed through comp and collision like a total loss essentially and if its renter has it then you're going to obviously try to go through their policy now this is why the conversion notice that i mentioned earlier in the rental contract is so important because if you can't convert it to a stolen car then it doesn't matter what kind of insurance you have most of the time they're going to say that's like that sucks so yeah they'll ask for a police report conversion notice uh they'll ask for a demand letter true depends on whose insurance it is demand letter and then probably start asking for like telematics gps information big liability loss uh john crashes a car serious injuries uh this is where policy limits umbrella excess coverage exclusions and corporate structure stopping uh abstract a 2500 deductible is annoying but uncovered a six-figure liability claim can threaten the business so this isn't really a scenario as much as um kind of a reminder like a hundred thousand dollar claim is not uncommon especially when there's injury when somebody gets hurt in a claim like million dollars millions of dollars like typically they're just going to max out the insurance policy and so if you are not maintaining your vehicles then this doesn't really stay as an insurance this turns into like a company issue because they can try to sue you so a lot of times the insurance carriers can help with this like the ones that you're going to file through so when your car gets into an accident you want to verify a couple things uh what they're obviously what they're doing with the car now one thing i want to mention everyone wants to do rideshare rentals everyone wants to uber and electric driving which traditionally means hey you're going to keep the car for a long period months months and months now i want to tell you one thing when somebody's renting a car if they have personal insurance that you verify personal insurance is going to require that a rental contract is no more than 30 days so if you have a 30-day rental contract you're fine or under now if it passes the 30 day threshold it's going to be considered a lease and so they're probably i mean not probably they're going to deny that's like the first thing they ask for if it's somebody else's uh like you know somebody hits your renter it doesn't matter they're not going to ask for the rental contract but if it's your insurance or the renter's insurance they're going to ask for the contract if it's over 30 days it's not good if your car gets into an accident on a platform doesn't matter what the the sitch is like i'm trying to go through the person's insurance i don't want to go through a platform if somebody hit my driver and i rented through toro i'm still going to go through that other driver because if i go through toro i'm going to let them handle it i'm going to pay for it i'm going to pay $2,500 for them to handle it versus going through that other person's insurance and okay let's talk about preventing accidents when i was doing leisure rentals primarily the way that i vetted drivers you guys are probably going to laugh is background checks like mvr so like driving history checks and then the second thing is i didn't allow chime or like refillable card i know that probably sounds silly but my like incident rating my problem children slash accident went significantly lower and then i started doing rideshare rentals and i realized that they all that's like all that they had and i i started accepting again so these are just a couple ideas uh we want to do uh we want to obviously verify the driver's license we want to do uh identity maps we want to make sure that the person renting the car is actually the person with the driver's license the right person's picking up the car and the right person's paying for it if i have joe rent it it's john's uh driver's license and then mary pays for it forget about you think you're going to be covered for insurance probably not you think you're going to win a back charge when they back charge every payment that they ever made to you a hundred percent you're going to lose that all day long now second part is risk which is mbr i should have added a report in this but mbr report is checking a couple different things you're checking major violations so speeding violations tickets um uh duis are probably the biggest thing that i'm looking for if somebody has one dui i'm not renting to them if they have multiple speeding tickets i'm not renting to them if they have uh one speeding ticket and like one uh like registration tag ticket i'm probably not going to care uh but if they have like multiple suspensions on the record or multiple tickets like multiple things i'm not renting them if they have any dui i'm not doing it multiple suspensions not doing it the other thing is when you're renting to people you don't have to do this but a lot of people will do platform eligibility so they'll so somebody will come in and be like okay show me your uber app like show me that you're actually doing uber and if they don't have it risky insurance obviously verifying policy status named insured or on the policy um limits relevant use or exclusions we already talked about that uh to do uh all this stuff you can use ifleet i pinned it above ifleet.tech you can run all this information i promise like doing these things will prevent a lot of stuff if you're just doing direct rentals no ride share i wouldn't allow refillable cards i wouldn't allow cash i wouldn't allow anything except major debit major credit card it's the best lesson i give you if you're doing regular direct rentals all right so let's talk about documents you need before somebody rents car this is vital because a lot of times the the not only is it important for you to make sure that you're covered but sometimes the insurance companies will ask for some of this so uh signed agreement vital driver's license verification it's pretty important like this is this is pretty high um insurance verification or selling insurance obviously this is like 100% vehicle conditions photos you should do this like obviously there's no reason you shouldn't do it odometer and fuel level not vital but like good to have i guess especially if you're charging for miles time stamp pickup record it's nice to have obviously this can come with photos authorized driver list obviously if susan's going to drive joe's rental car you need susan's information too you can't just take joe's uh any protection selection decline if somebody rents my car and doesn't have their own insurance they have to buy my coverage they can't decline it that's that's not happening what you need to capture after crash first off i want to say this when an accident happens you want to try to get this information as quickly as possible the only reason is because the longer you take the story starts to change now uh joe didn't crash into mary's car joe was driving and mary crashed into his car like the the freshest information will be at the very beginning so as soon as a car gets into an accident i don't care what time it is i'm gonna have my customer support team call them right away and get all the information uh worst case you get it the next morning whatever like anytime that it happens stop what you're doing get the information because by the exact time date and location of accident this is this is really important if you're getting a police report that should already have it who is driving was it mary driving which an authorized driver was it joe driving who's driving the car which again this should be on the police report were they doing ride share where then what were they doing did they accept the ride passenger car where we at so we're trying to understand what period it is if they were on a ride share trip i want a screenshot of that trip which the driver will be able to provide photos of the vehicle and crash scene i want to see all the photos this sounds like a lot of information but i promise when your car gets into an accident like the more information the better i'd rather have way too much information than not enough police report which should have a lot of this stuff other driver and witness information uh which should be on the police report except for witness which you can talk to your wrench about uh tow storage location i try to have the car towed to our lot or if it's not then we'll have it picked up within a day because every day that it sits there costs significantly more money you can get reimbursed from the insurance company but it's not every time that you get a reverse immediate notice to the correction or to the correct carrier right away once i find out who's at fault what happened to have the right information i'm calling even without the information i'm calling the carrier right away and saying hey i'd like to file an insurance claim immediately they're gonna ask me for information i'm gonna say i don't know just create a create a claim and they will and they can give me information later so in the first 24 hours really in the first like 12 hours you should have this make sure everyone's safe of course preserve evidence which is what we just talked about confirm status of trip uh report to the right party which is the insurance carrier secure the towed vehicle and then file a claim why claims can get denied or reduced excluded or unauthorized driver which we already talked about excluded use which would be rideshare this is why you need to sell insurance uh policy not active or payment lapse this is why you need something to verify the insurance and continuously do it uh late reporting or failure to cooperate late reporting not so much it's typically like a platform uh failure to cooperate would be car gets into an accident uh got all the information sent to the insurance company insurance company calls joe my renter and joe refuses to talk to them that actually causes issues like that that could be a pain point then i'm gonna call joe and say hey joe i want you to understand the severity of this if we can't get this insurance company to cover it you're on the hook you signed the rental contract like now you're paying out of pocket for this misrepresenting how the vehicle is being used missing evidence you don't have a police report damage outside of the covered period this is the risk of having like your own personal policy i don't know i'm not selling the right kind of insurance where mechanical failure pre-existing damage obviously that's not gonna be covered biggest mistakes operators make buying the cheapest policy without understanding exclusions that's pretty big one assuming platform coverage protects rental vehicle in every period treating an insurance card as proof this is a great one treating an insurance card as proof of renter being covered if somebody sends me an insurance card that has their name the the policy information and uh you know the car on it that means nothing to me that means zero i've had there's one lady that rented for me send me an insurance card and i let her drive off she's going up north i don't know flagstaff or something and i called the insurance company the next day and it turns out that she didn't have insurance like that that car that she sent me had elapsed that's why it's so important to 100% verify insurance that's why you should be using the software if not go the old-fashioned way and call in letting unauthorized drivers use vehicles using one agreement for every state and rental model for pickup return or accident documentation again documentation is key waiting until the first major claim to learn how what you need before your first direct rental correct policy for off-trip use written coverage summary from broker carrier i want to know exactly what my policy says state compliance uh rental contract which you can arguably create yourself but make sure it follows the rules that i said earlier driver screening vital insurance verification if they're not buying insurance make sure they're buying the right kind of insurance which you can do yourself through software accident sop which we went over just now claims contacts this is pretty big one you want to have all the contacts in the claim because you don't want to save in your notes on your phone it's gonna be a pain photo inspection for after you technically technically do before i've never been asked for before photos and then gps telematics data screen drivers verifying uh documentation sign contract collect payment track vehicles and then insurance claim evidence workflow again a lot of this can be done through the software ifleet does a lot of this i mean all this stuff the entire stack in one photo who's the driver what are they doing with it is it like leisure driving is it rideshare what period is it on again this is stuff that you're going to cover which insurance is going to be responsible for this which will be dependent on what happens what does renter owe this would be like you're going to collect a security deposit from them and then how do we prove claim or recover so this is going to be the insurance information that you got final takeaways insurance follows the facts of loss not what you hoped was covered liability physical damage responsibility are separate questions there are two different kinds of insurance uh there's off trip on trip liability common collision rideshare adds time period period zero period one period two period three like we talked about your policy agreement operations must all match the business to be efficient very important as we already talked about okay everybody it's all the time that i had check out ifleet it's 14 days free it's probably the in my opinion it's the best software out there for doing direct rentals rideshare rentals you can sell insurance verify insurance do background checks collect security deposits you can essentially do the entire process under one roof it's 99 bucks a month and it's built from the eyes of somebody that actually is in the business check it out i appreciate everyone being here we're going to try to do a webinar once a month so we'll let you guys know when the next but thanks for watching and i'll see you later peace