TAKEAWAYS FROM 10/22/2024 DISCUSSION:

Today started with attorney Leslie Pujo discussing rental agreement criteria and issues. Electronic signatures were discussed about it being an effective signature and showed how it related to former types of physical signatures. She continued to put an emphasis on keeping the terms and conditions tied to the rental agreement and a great way to do that is by using electronic rental agreements like through software like ASAP.  The signature must establish the intent to sign. Renters cannot argue they did not read the terms & conditions. If they signed the rental agreement it is tied to, they are agreeing to it. When discussing counter-less rentals a master agreements and or membership agreements will come into play. As per the State of California, the program permits the renter to bypass the counter and go directly to the vehicle. A good practice is to add the terminology on the contracts to say, “By taking possession of the vehicle, the renter agrees to these terms and conditions.” When advising on the damage issues she stated that the following documents should be with each rental:

1- Signed Rental Agreement

2- Vehicles Condition/damage report

3- PHOTOS

4- Vehicle damage inspection or signed and dated incident report from renter

5- Document any vehicle exchange and check license again

6- Maintenance records

7- Mileage documentation

Ms. Pujo highlighted some new cases and legislation in the rental car industry. The rental company could be held liable if there are open recalls that are not remedied and sent out on rental. In a negligent entrustment case Richardson, et al. v. EAN Holdings, 2024 WL 4466605 (E.D. Ky. 2024), a vehicle was turned over to a renter who had a recent history of drug offences that were readily available through basic searches and the renter did not return the car on time. The renter’s counsel said for these reasons, the rental company was at fault, but the courts ruled against this. Also, in California, the new law reduced the time frame when a GPS can be turned on for overdue vehicles from 72 hours to 24 hours. Some states are considering legislation to require rental companies to wipe data or perform factory reset between rentals.

The next discussion led by Ted Demetriou of Demetriou Insurance Services, Inc. along with Kathy Egan, Lancer Insurance’s Underwriter, & Brian Cooper, Lancer Insurance’s Claims Supervisor, focused on the benefits of the insurance program provided by Lancer, emphasizing its expertise in transportation claims, particularly car rental. Key points included the importance of thorough documentation, such as rental agreements, to support claims. The program offers competitive pricing, quick claim resolution, and personalized service, unlike competitors. Lancer also offers a stand-alone collision damage waiver counter product that can be upsold at the time of rental. Metrics highlighted included saving clients from cancellation through loss control and the value of the ASAP Rent claims module. The discussion also covered the potential for a first-dollar renters liability coverage and the importance of training for counter staff. The program’s strength lies in its personalized service, quick response, and the ability to handle claims effectively.

The meeting shifted to GuidePoint’s telematics services presented by Anne Taylor, emphasizing their data-driven solutions and client-focused approach. They offer hardware, software, and embedded technology for vehicle tracking, with real-time updates every two minutes. The service is helpful for finding available cars on the car rental lot(s) or note that a vehicle is at the repair shop through geofencing. Ms. Taylor noted that the data is integrated with the ASAP Rent software and can be initiated after installation by a simple change of a toggle switch on the ASAP Rent platform. The embedded solution, available for Toyota, GM, and Stellantis models, costs $10 monthly.

Anders Green from 365 ID spotlighted his ID verification system, integrated with ASAP Rent. It uses scanners to verify document authenticity, with a small setup fee and low annual cost. The system supports various document types and offers secure data transfer. The ID scanner is easy to use, very accurate and returns results in seconds.

Mr. Donald Hubicki of Global Toll Services also touched on tolling industry updates, including New York’s congestion pricing and Florida’s toll suspension during hurricanes. He also stress the fact that NYC has an ongoing operation to pull over cars that pass through tolls with many outstanding toll bills, and they are impounding the vehicles. This is a serious issue for rental vehicles passing through these toll locations.

Charles Caravella from Hawkeye Claims discussed the importance of having a structured claims process for rental car companies, emphasizing the need for a plan before accidents occur. He highlighted the common pitfalls of reactive claims handling and the necessity of a claims team, proper insurance, and well-maintained fleets. Caravella used a pyramid metaphor to illustrate the steps, starting with foundational areas such as having a claims team, proper fleet insurance, appropriate form documents, staff training, and more well before addressing financial recovery. He also mentioned upcoming roundtable discussions on travel insurance and violation support. Mr. Caravella stated that all are welcome to the the upcoming roundtable discussions and you can register on their website at www.HawkeyeClaims.com. Dusty and Hector from PureCO introduced their cross-border damage recovery program, stressing the effectiveness of their contingency-based service and the challenges of recovering damages from international renters.

Trevor Fagan from Chatmeter discussed their 15-year history in online reputation management and business listings for various industries, including retail and automotive. He emphasized the importance of timely responses to customer reviews, noting that 73% of consumers abandon a brand after one bad experience and 75% of those searching for directions will visit within 48 hours. A one-star rating increase can boost revenue by up to 9%, according to Harvard Business Review. Chatmeter aims to help businesses be found and chosen, ensuring accurate listings and timely review responses. They also integrate with major platforms like Google, Meta, and Facebook.

Michael Meyer and Emmanuel Scuto from Rate Highway presented a collaborative approach to revenue management, emphasizing the need to challenge existing beliefs and adopt innovative strategies. Their presentation was well done and captivating. They discussed the importance of analyzing market data, utilization, and pricing tactics to avoid price wars and improve decision-making. A case study from a rental car location in Iceland demonstrated how their system, which integrates utilization data, can automatically adjust pricing strategies based on fleet availability and market conditions. The presentation highlighted the benefits of automating repetitive tasks to focus on strategic analysis, aiming to reduce uncertainties and enhance business performance. Emmanuel discussed how the brain functions on two levels, fast memory recall and slow. The fast acting portion reacts automatically to well known processes that have been transformed into habits; whereas, the slow processing is the analytical processes to work through less familiar thoughts, responses, and actions. The brain uses 4 times more energy to work through analytical thoughts than the well known habitual thoughts and actions. it is therefore crucial to retrain ourselves by first stripping away the bad habits before we can begin to build new, more effective habits by way of the analytical process. Soon these new processes and thoughts will become habits that suit us better. Michael and Emmanuel stressed that the car rental company owners need to apply this process to their revenue generating processes.