General Information & Restrictions
Rental Insurance Requirements
- Only employees of the rental car company who have received training on the insurance product may offer or sell insurance.
- Before employees are eligible to offer or sell insurance products, they must receive training on the protection afforded under the policy to include, but not limited to, the respective policy's insuring agreements, exclusions, and/or conditions. Rental car companies must retain all records of training provided to employees regarding insurance products and maintain those records for a minimum of five years. Training records must be made available immediately upon request for inspection by the department.
- The rental car company and appointing insurer will be held liable for any acts and/or omissions of individuals offering or selling insurance products to renters.
- Insurance may not be offered or sold by a limited licensee unless:
- The rental agreement is for a period of less than 90 consecutive days.
- The rental car company's licensee must first inform the renter that they may already have insurance policies in place that provide the same coverage being offered by the rental car company. The rental car application must contain a section for the renter's initials or signature reflecting their acknowledgement.
- Every location where rental agreements are executed involving the offer or sale of insurance products must have brochures or other written materials readily available to prospective renters.
- The written material must clearly:
- Summarize the material terms of coverage offered to renters, including the identity of the insurer.
- Disclose that the coverage offered by the rental car company may be a duplication of coverage already provided by a renter's other insurance policies or other sources of coverage.
- State that the renter's purchase of insurance coverage offered by the rental car company's limited insurance license is not required in order to rent a vehicle.
- Describe to the renter the process for filing a claim if the renter elects to purchase coverage and in the event of a claim.
- Disclose to the renter information regarding dispute handling.
- Disclose that disputes involving insurance must first be handled with the rental car company and the insurer.
- The rental agreement must contain a section on the application for the renter's initials or signature reflecting his/her acknowledgement that insurance written material was provided and that they understood the insurance requirements before coverage was purchased.