FlyerTalk Forums - View Single Post - Where can I buy daily 3rd party liability insurance for occasional car rental?

Dec 27, 2017 | 9:32 am

#20

jackal

FlyerTalk Evangelist

Join Date: Mar 2004

Location: SGF

Programs: AS, AA, UA, AGR S+, Choice Platinum

Posts: 23,314

Quote:

Originally Posted by GREAKLY

Once again, I do not get why everybody sells CDW/LDW but nobody sells SLI/SLP? I understand the issue with lthe iability limits, but rental companies seem to offer both (CDW/LDW and SLI/SLP) for the same amount ($15-25 per day). Which means that the cost of those two should be comparable.The rental guys must have been getting those products somewhere and, most likely, for the price of $3-5 per day. Why couldn't I get it at the same place for the same price? And, more importantly, why those insurance companies that sell SLP/SLI to the rental companies are not chasing the general public online as aggressively as do the ones selling CDW/LDW?

Rental companies self-insure for CDW. They usually use an underwriter for SLI, and the underwriter takes a split of the SLI sales revenue. At the operation I worked at, 60% of the SLI daily fee went to the underwriter and we kept the other 40%. SLI product penetration (with our highly-trained sales agents) was probably somewhere around the 20-25% mark. CDW was quite a bit higher, probably 40-50%.

Reply