Hired Car Physical Damage Insurance For Sports Organizations

admin — Fri, 27 Mar 2009 13:00:36 +0000

Sports organizations occasionally rent vehicles for officers to travel out of state on business and for the transportation of participants. If a Non Owned And Hired Auto Liability policy is in existence, it will not respond to damage to the rented vehicle itself.

There are three options available for insuring damage to the rental vehicle:

1. Purchase Collision Damage Waiver from the rental car

company. This is the safest course of action to follow

as it will often pay for 100% of damages. The cost of

this coverage typically ranges from $15 to $30 a day.

2. Purchase Hired Car Physical Damage from the

insurance agent of the sports organization. Coverage

typically costs $250 per year. However, this policy will

not pay the following damages that are triggered by

many rental car contracts:

* The difference between Actual Cash Value and

Replacement Cost in the event the vehicle is

totaled.

* Loss of profits to the rental car company while the

vehicle is out of the fleet being repaired.

* Diminution in resale value

3. Rely on credit card benefits for physical damage. The

terms of credit card benefits vary greatly.

This is a complex area and consultation with an insurance professional is recommended prior to vehicle rental.

Source: John Sadler

Sports Insurance Blog » collision damage waiver

Hired Car Physical Damage Insurance For Sports Organizations