Vehicle Hire Extended Protection in the USA: Market Dynamics, Affinities and Partnerships is a report investigating the market for loss damage waivers and supplementary liability insurance sold in conjunction with rented vehicles in the US. Key features include: an outline of market drivers and the value, growth and segmentation of the market from 2014 to 2018; quantification and commentary concerning the segmentation of policies in force by distribution channels used to buy them in 2018; estimates for provider market shares in 2018; a comprehensive listing of major affinity and partnership marketing relationships visible at the time of the research in 2018 for this type of contract, including ones employing 'insurtech' with the aim of disrupting incumbent competitors; and forecasts for the value of the market up to 2022.
Moreover, all market value data, including the forecast, is segmented between the Midwest, Northeast, South and West so that the current magnitude and likely future direction of the opportunity is apparent for each region, and is provided in addition to the report, along with other supporting data, in an associated market data file.
In this report, loss damage waivers (sometimes referred to as collision damage waivers) are defined as an optional coverage available to customers renting a vehicle. If acquired, depending on whether there is an excess associated with it or not, the customer does not have to pay for some or all of any damage to the vehicle while in possession of it. While they are sometimes also referred to as ‘insurance’, loss damage waivers do not normally take the form of an insurance contract but, rather, are generally backed financially by the vehicle hire firms themselves.
As for supplementary liability insurance, in the context of vehicle hire, this is defined as a type of insurance that can be acquired by customers hiring vehicles that covers an additional layer of third-party liability. In the US, the statutory limits for third-party liability are quite low so this type of cover can be purchased separately to top up the mandatory limits, thus providing further protection to the customer.
In keeping with 11 other studies in this series, research processes and sources used to create it include the following: primary interviews with leading brokers, underwriters and affinity / corporate partners active in this field, including a survey of 40 vehicle hire outlets; in-house data drawn from other Finaccord reports; and comprehensive analysis of secondary information from a diverse range of data sources including US government departments and financial regulators, relevant trade and other associations, specialist publications and published disclosures by competitors active in the market. All relevant workings, such as estimates for attachment rates within the target audience, are presented in a transparent manner.
For further information about this research, please access the table of contents and series prospectus by clicking on the links on the left-hand side of this page, or e-mail firstname.lastname@example.org.