The last thing you want to have happen when you rent a vehicle is an accident. However, accidents do happen, all too frequently. To minimize the financial costs that you could experience, we've put together the following information concerning your personal/business automobile policies, as well as optional insurance products and waivers we offer.

• Automobile Liability Insurance
• Individuals (Personal Policies)
• Businesses/Companies (Business Policies)
   
• Texas Automobile Rental Liability Insurance Policy
• Loss Damage Waiver
• Personal Accident Insurance
• Credit Card Coverage?

Automobile Liability Insurance (Personal)

     One of our rental requirements is that the renter must present proof of automobile liability insurance, at the time of rental. In almost all cases, if you're renting a vehicle for personal use or while your primary vehicle is in the shop, your personal automobile liability insurance policy should provide you protection from third party claims.

     However, it is always best to contact your insurance agent and ask for his/her advice. Please make sure that you inform him/her of the following:

• The type of vehicle being rented (if a truck, the Gross Vehicle Weight is important).
• What the vehicle will be used for (commuting, business use, transporting goods, etc.)
• The length of time you will need to rent the vehicle.

     We've had many customers who thought their personal policy protected them, but, after they've had an accident, their insurance company denied coverage due to: 1) the type of vehicle, 2) the use of the vehicle, and/or 3) the length of the rental. So, please take a moment to discuss your upcoming rental with your insurance agent. To provide you a higher level of comfort, ask your insurance agent to confirm your policy's coverage in writing, in relation to your rental.

     For customers who do not have the time to investigate their policy, or do not wish to risk the possibility of another claim being recorded against them, we offer the Texas Automobile Rental Liability Insurance Policy as an alternative. This is an automobile liability insurance policy, which provides a total of $1,000,000 in coverage, as well as other features. (More information on this product can be found below.)

     Please be aware that the Texas Automobile Rental Liability Insurance Policy does not provide any coverage to the rental vehicle. PV Rentals does offer a Loss Damage Waiver, which, for a daily fee, waives our right to collect damages to the rental vehicle. However, while the Loss Damage Waiver does have some exclusions and provides complete coverage to cars and vans, vehicles over 10,000 GVW have additional exclusions (see below for more information). While your personal automobile insurance policy may extend you coverage to the rental vehicle, once again, it is not an absolute.

     Our Rental Sales Agents are more than happy to answer any questions you may have. However, as they are not licensed insurance agents, nor do they know the details of your personal automobile liability policy, they are unable to answer questions pertaining to each customer's insurance coverage. Please discuss this with your insurance agent.

Automobile Insurance (Business)

     As has already been stated, one of our rental requirements is that the renter must present proof of automobile liability insurance, at the time of rental. This applies to individuals renting for business use and for businesses which have corporate accounts. However, unlike the Texas personal automobile liability insurance policy, which does provide coverage for rental vehicles (with some exceptions), most automobile insurance policies written for businesses do not.

     For a business to have coverage in the event of an accident with a rental vehicle, they must have purchased Non-Owned and Hired coverages. Most business policies are purchased to provide coverages for listed owned/leased company vehicles, or even all owned vehicles. But as rental vehicles are not listed on the policy, nor owned by the company, the business would have no coverage.

     To remedy this situation, companies who plan to rent vehicles in the course of their business, should meet with their insurance agent to discuss their options. Usually the Non-Owned and Hired coverages, depending upon the type of business, is relatively cheap. The insurance company will charge an annual premium and then usually conduct an audit after the policy year to make any premium adjustments, based on the actual number of rentals.

     While the Non-Owned and Hired coverages will provide the company coverage from third party claims (liability), in the event of an accident, it will not provide coverage to any physical damage and/or loss to the rental vehicle. As some of our vehicles are valued at over $70,000, if the rental vehicle is totaled or stolen, you might find yourself trying to pay a very large bill.

     If your company is not in the position to sustain such a potential loss, please discuss this with your insurance agent as well. Physical Damage coverage (Collision, Comprehensive, Theft) can be purchased for rental vehicles in your business automobile policy.

     PV Rentals does offer a Loss Damage Waiver, which, for a daily fee, waives our right to collect damages to the rental vehicle. However, while the Loss Damage Waiver does have some exclusions and provides complete coverage to cars and vans, vehicles over 10,000 GVW have additional exclusions (see below for more information).

     For customers who do not have the time to investigate their policy, or do not wish to risk the possibility of another claim being recorded against them, we offer the Texas Automobile Rental Liability Insurance Policy as an alternative. This is an automobile liability insurance policy, which provides a total of $1,000,000 in coverage, as well as other features. (More information on this product can be found below.)

     Our Rental Sales Agents are more than happy to answer any questions you may have. However, as they are not licensed insurance agents, nor do they know the details of your business automobile liability policy, they are unable to answer questions pertaining to each customer's insurance coverage. Please discuss this with your insurance agent.

Texas Automobile Rental Liability Insurance Policy

     Since 1998, the Texas Insurance Commissioner has permitted rental companies to sell the Texas Automobile Rental Liability Insurance policy to rental customers. Under this arrangement, the rental company is the policyholder of the policy and for a daily charge, the rental customer is added to the policy as a named insured. While this policy does not provide coverage for property damage to the rental vehicle, it does provide the following:

     The Texas Automobile Rental Liability Insurance policy not only covers the renter, but any authorized driver(s) specified in the rental agreement.

     The Texas Department of Insurance sets the policy language and rates for the Texas Automobile Rental Liability Insurance Policy sold in Texas. The Insurance Commissioner requires rental companies to clearly disclose that customers may not need to purchase this policy, that the coverage may duplicate insurance the customers may already have and that buying this policy is not a condition for renting.

     The Texas Automobile Rental Liability Insurance Policy is available for motor vehicles of the private passenger type, including passenger vans, mini vans, and Pick-up trucks that are primarily intended for the transport of persons. In 2000, Insurance Commissioner revised this list to include; motorcycles, motor homes, trailers weighing 10,000 pounds or less, and trucks weighing 26,000 pounds or less, as well as car top carriers, tow bars, and tow dollies designed for use with a vehicle.

Loss Damage Waiver

     Customers are liable for all loss or damage to the rental vehicle, regardless of cause. The Customer is also liable for loss of use of the vehicle (revenue lost while the car is being repaired), diminishment of value, and other items listed on the rental agreement.

     To provide our customers a peace of mind, we offer a Loss Damage Wavier, which, for a daily fee, waives our legal rights to collect damages for the rental vehicle. A customer renting a vehicle for personal use might have coverage for any damages or loss to the rental vehicle under their personal automobile policy. However, many customers choose to purchase the Loss Damage Waiver, just in case their personal insurance policy would not provide coverage, or do not wish to risk submitting a claim to their insurance company.

     Those customers who purchase the Loss Damage Waiver, will be relieved of all financial responsibility for loss or damage to any vehicle with a GVW of less than 10,000 lbs., as long as they comply with the terms of the rental agreement.

     The purchase of the Loss Damage Waiver for rental vehicles which exceed 10,000 GVW does not relieve the customer of responsibility if the vehicle is stolen or there is any damage to the truck's box and/or stake-bed. If you intend to rent such a vehicle, you might wish to discuss with your insurance agent if your personal or business policy will provide such coverage to the rental vehicle.

Personal Accident Insurance

     Personal Accident Insurance is an optional coverage we offer at the time of rental which provides accidental death and medical expense benefits to the customer and all passengers in a rental vehicle.

     The customer is covered 24 hours a day during the rental for the following:

• $100,000 accidental death
• $1,000 medical coverage for injuries due to an accident
• $100 for ambulance expenses

     Passengers are covered while in the vehicle for the following:

• $10,000 accidental death
• $1,000 medical coverage for injuries due to an accident
• $100 for ambulance expenses

Credit Card Coverages?

     We receive many questions from customers regarding the coverage their credit card affords them when they rent a vehicle. Unfortunately, as there are too many credit card car rental insurance programs available - and all are constantly changing - it is impossible for us to know for certain the details of your credit card program. If you'd like to know the specific coverages and exclusions of your credit card program, we strongly suggest that you contact your credit card company.

     However, over the years we have seen that just about all of the credit card car rental insurance programs have the following characteristics:

• Excess Coverage - The credit card company will not pay until your personal and/or business insurance policy has paid. In other words, you still have to file a claim with your own insurance company.
   
• Rental Length Exclusion - Most programs will only provide coverage if the vehicle was rented for less than 14 days.
   
• Vehicle Exclusion - These programs are well-known for excluding any specialty or luxury vehicle, in addition to passenger vans and trucks (of varying sizes). How they define a truck, a specialty or luxury vehicle, is not consistent. Many of the vehicles we rent are usually excluded from credit card programs, because they define them as such.