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					Loss Prevention

     Operational Training

                            September, 2006
Loss Prevention Begins At The Counter
  You Are The Front Line Underwriter
  Your Decision To Rent Or Not To Rent Can
    Effect The Profitability Of Your Business
  Your Job To Be Sure The Right Driver Is In
    The Right Car
  Your Job Is To Properly Train Your Renter!
  Factors In Controlling Your Losses
A Properly Qualified Renter
Proper “Written” Counter Procedures
Properly Completed Rental Agreement
Properly Trained Counter Agents
Proper Check In And Check Out Forms That
  Include Signatures

Your Written Counter Procedures Must be Submitted for Approval to GMI!
Factors In Controlling Your Losses
Proper Vehicle Inspection
   Prior To In-fleeting
   Walk Around, Before And After Each Rental With A Signed Or
      Initialed Form
   Regular Scheduled Service
   Written Maintenance Procedures
Proper Maintenance Records
   Document All In-house Repair Orders
   Keep All Receipts For Outside Repair Orders
   Require Vendors To Provide Insurance Certificate Keep All
     Receipts For Outside Repair Orders
   Require Vendors To Provide Insurance Certificate
                    Proper Counter Procedures
            Follow Up For Cars On Rent
                  Always Stay In Touch
                       Call Day Before Due Back
            Procedures In Place For Payment
                  Charging In Advance
                       Helps Control Rental
                       Makes Sure All Charges Understood
            Rental Agreement And Key Control
                  Rental Agreements Kept In Secure Location
                  Keys Out Of Site And Secure
            Start A No Rent List Of Problem Renters

Most Common Mistake Is A Rental Agreement Not Filled Out Properly Or With Missing Or Incomplete Information!
Top Ten Reasons For High Loss Ratios
Number One! License Issues
   Uninsured Driver’s
      Do Not Rent To People With Out Insurance, This Makes
         Your Insurance Primary
      Make Sure All Additional Drivers Are Insured As Well.
      Ask For Insurance Information, If You Have Time Verify
         With The Insurance Agent
   Out Of State
   Expiration Dates
   Never Rent To Take A Drivers Test
Top Ten Reasons For High Loss Ratios
 Number Two! Contracts With Additional Drivers
   Must Be Listed On The Agreement Or Coverage Will
        Be Denied
   Must Qualify Same As Renter
   Never Extend
       Past 30 Days
       Or Alter Without All Parties Present.
   Educate Primary Renter As To Consequences
   Selling SLI Or CDW Does Not Make A Bad Rental A
        Good One!
Top Ten Reasons For High Loss Ratios

Number Three! 30 Day Rentals
  Rentals Longer Than 30 Days Are A Lease. Your Insurance Is For
      Rentals Only
  Why Does The Renter Need A Rental For More Than 30 Days?
  Never Extend A 30 Day Rental Without Signing A New Contract
  The Customer Must Bring The Car In Or You Go To The Customer
      To Visually Inspect The Car At Every Renewal Or Extension
 Top Ten Reasons For High Loss Ratios
Number Four! Cash Rentals
    Most Dangerous Rental You Have
    Minimum, Three Proofs Of Residency, All Current, No Overdue
    Name And Address Must Match The Drivers License Exactly
    Never More Than A Week
    Never Extend Over The Phone
    No Additional Drivers
    Charge In Advance + Deposit
         If Your Losses are High You Should Discourage Cash Rentals

Some States Will Not Allow You To Refuse Based On Ownership Of A Credit Card!
 Top Ten Reasons For High Loss Ratios

Number Five! Licensing And Employment
  Get Complete Information Including, Address, Supervisor And Phone
  If Unemployed …Why?
  License Not I.D. Card
  Must See Actual License
  International License Is Only An English Translation, Not A License
 Top Ten Reasons For High Loss Ratios

Number Six! Age Restrictions
  Never Rent To Anyone Under 21
  Highest Numbers Of Accidents 21-25!
  Watch For Older Renters To Be Sure They Can Physically Handle
      Rental Car
  Other Age Related Dangers
      Restrict College Students
      No Military Under E-5
      Never Add And Additional Driver
Top Ten Reasons For High Loss Ratios
Number Seven! Completed Rental Agreement
   You Fill It Out
   No Blanks
   Complete Current Address
   Get Social Security Number
   Complete Employment Information
   Never Use A Rental Agreement Unless Approved By GMI
   Use Software To Set Up Required Fields To Be Filled In On The Rental
       Agreement Or No Rental
   Handwritten Rental Agreements Often Lead To Discrepancies
   Point Out And Have The Renter Initial Any Important Areas Of The
       Rental Agreement
 Top Ten Reasons For High Loss Ratios
Number Eight! Mileage Restrictions
  Radius Restriction
      Going Outside Radius Can Void Insurance
  Neighboring State Laws
      Statutory Limits May Be Different
      Your Liability May Increase
  Wear And Tear On Your Car
      Have An Exit Plan For The Car And Monitor Mileage Accumulation
Top Ten Reasons For High Loss Ratios
 Number Nine! Claims Reporting
    Report All Claims Immediately
       Send In Every Incident
       Let Your Adjuster Decide
       Record Only - Record Only Claims Reporting Allows CCS To
            Investigate For Possible Liability Exposures And YOU ARE
            NOT CHARGED Nor Does It Show Up On Your Loss Runs
    Do Not Handle A Claim Yourself
    Fill Out Forms Completely
    Never Offer Any Information
       Never Give Out Any Information Other Than Insurance
    Have The GMI Accident Report Form In The Glove
        Compartment Of Every Car - Tell The Renter It Is There.
Top Ten Reasons For High Loss Ratios

  Number Ten! Physical Damage
    Losses Due To The Sale Of CDW Or Other Waivers
        Can Increase Your Loss Ratio.
               Consider Not Selling Waivers
               Increase Your Deductible
               Sell Collision Insurance Products Such As
                  Renters Collision Insurance
A Properly Qualified Renter

Telephone Qualifying
Right Driver, Right Car
Qualification Questions Designed
  To Make A Good Rental
  Telephone Qualifying
First Contact On The Phone
Focus On The Caller
Speak Slowly, Clearly And Into The
   Mouth Piece
                    Right Driver Right Car
  Listen To The Customers Request
  Qualifying Questions Determine Rental Equipment
     Then Rate
  Listen To What The Answers Tell You
  Does Your Customer Read And Write In English

This is a simple business. You rent a good clean dependable vehicle at a fair price…. All you ask your
                customer to do is bring it back in the same condition and pay your bill!
                   It is your job to ask the right questions to ensure that contract!
              Qualifying Questions
Is The Renter And All Additional Drivers Over 25?
    Tells You Who And How Many Drivers
Will You Be Using The Car Locally Or Out Of Town?
    Where Is The Equipment Going
What Major Credit Card Will You Be Using?
    Determining If This Is A Cash Renter
How Long Will You Need The Car?
    Helps You Determine Rate
When Do You Want To Pick Up The Car?
    Lets You Check Availability
    Gives You An Opportunity To Turn Away An Unwanted Rental!
Decision Time!!!!
 Remember, Most Accidents Are Caused by Additional Drivers…Most Not Authorized.
     Under Age Drivers Almost 10 Times More Likely To Have An Accident!
             Passenger Van Rentals
Right Number Of Seat Belts
Consider Two 7 Pass Vans Instead Of 15
   Most Rollovers Are Single Vehicle Crashes
   Driver Must Be Well Rested
   Especially Cautious On Curves
   Caution Your Driver to Re - Enter Roadway Cautiously, If Wheels
     Drop Off The Pavement
   Check Tire Tread And Inflation At Least Once A Month
Restrict Drivers To Those Familiar With The Equipment

      Inexperienced And Over Confident Drivers Contribute To Many Rollover Crashes
            Roll Over Danger In 15 Pass Vans Increase As The Load Increases
              Cargo Truck Rentals
What Will You Be Carrying?
   Sand Or Gravel
   Concrete, Brick, Rubble
   Off Road Use
Tell The Renter The Height Of The Vehicle And To Watch
  For Over Hang And , Low Bridges, Tunnels Or Parking
  Garages – Especially Drive Through Restaurants
An Overloaded Or Improperly Used Truck Is A Loss
  Looking For A Place To Happen!

                  Most Important… Right Truck for Right Job
                   No Truck Rentals for Off the Road Use!
    Possible Catastrophic Losses
        (Million Dollar Loss)
Owners And Employees Driving Your Rental Cars
  And Not On A Rental Agreement
Renting Into A State That Has Vicarious Liability
Negligent Entrustment
   Renting A Faulty Vehicle
   Making A Rental To Someone Who Cannot Handle
     The Vehicle Physically Or Due To The Influence Of
     Alcohol Or Drugs (Even Prescribed Medication)