Does Your Coverage Include Protection Against Rising Truck Rental Costs?
Loss control is a critical component of managing your insurance cost and running a successfully business, especially in the transportation industry.
The total dollar amount of incurred losses for physical damage and the combined liability lines of business have continued to increase dramatically since COVID.
What does that mean? The cost of truck repair is on the rise and leasing/rental companies are pickier than ever before. Insurers are seeing more and more claims being filed by rental companies for normal wear and tear type damages and becoming more stringent about what they are trying to get recovery for.
Minor damage details that used to be ignored are now being recognized and rental/leasing companies will charge the policyholder on return for the repairs. And unfortunately, If you have multiple claims, your insurance policy can be in jeopardy of rate and deductible increases, coverage elimination for rental vehicles, or even non-renewal for adverse losses.
Some common claim incidents include:
- Driving through low hanging trees (roof bump or scratch)
- Sideswipe of an object
- Dent in fender/bumper from backup damage at dock
- Inside floor damage from cargo or pallets being dragged across floor
If you have a long-term or short term lease and it is clear there are multiple incidents of damage (such as scratches or dents to multiple sides of the truck,) they could be counted as multiple incidents and you may be subject to a deductible for each incident. The documentation you have on hand is important. Also, watch for separate charges for wear and tear and push back to the rental company if you see those charges.
If you rent or lease trucks from a rental company you should consider the following suggestions:
- Always inspect rental/leased units thoroughly before taking possession.
- Utilize an inspection checklist that you or your driver can use to review any preexisting damage before accepting the unit. Pictures of any pre-existing damage is very helpful.
- Have drivers report all incidents (minor or major damages) to you as they occur and certainly prior to returning each rental unit to avoid any unexpected claims.
With the rising cost of repairs it will pay you in the long run to remind your drivers to drive these like the vehicles you own and really, not party like it is a rental.
Written By: Terri Moran
Terri’s career spans many years with roles in Leadership, Underwriting and Marketing. She was responsible for one of the largest Moving & Storage programs nationally, serviced by dedicated Moving & Storage brokers. In her spare time, in addition to enjoying her family, she is the Chair of the Board of Directors for the Surplus Lines Association of California.