Non owned vehicle on personal auto policy

[wornout]

I have an insured who is renting a car from Budget through their long term program. Basically, he is renting a car for about 6 months and then trades it in. His company reimburses him for the expense so he likes have the flexibility and new vehicle.

Now the tricky part, the agreement with Budget says they get to decide on repairs and claims and they are technically the owner and requires the insured to carry the insurance. I have the policy currently with Progressive and I sent the agreement to their underwriting department and they approved the coverage. However, I am worried about what would happen in a claim.

Has anyone written a policy like this? What carrier have you used? Have there ever been claims and how was it handled? I imagine a fender bender would be not an issue, but a total loss could prove to be a mess. It was written by a producer no longer here at the agency. Personally, I would like to get off this risk.

 

[InsCommentary]

ISO manual rules allow a vehicle rented under at least a 6-month continuous lease to cover the vehicle and lessor on their personal auto policy. For a business auto policy, this can be done by endorsement. You want to confirm that the lessor has liability and physical damage coverage...get it in writing from the carrier.