What it does
For a leasing or rental business, a core risk is the customer who never returns a vehicle, or a lessee who disappears with it or sells it. As its title indicates, CA 20 10 addresses loss caused by conversion, embezzlement or secretion of leased or rented autos. The current edition is 10 13 (prior edition 12 93).
Who needs it
Car and truck rental agencies, fleet lessors, dealers with leasing operations and peer rental operations that hold title to vehicles in others' hands.
Key points
- Read the endorsement's schedule and conditions for the limit, deductible and any reporting or recovery steps the insured must take when a vehicle is not returned.
Quoting notes
Ask about rental screening (identification, credit card holds), GPS tracking and recovery procedures, and the past three years of unreturned vehicle losses. Pair with CA 20 09, CA 20 11, CA 20 13 and CA 20 14, the other leasing or rental concerns endorsements.
