Insurance

We provide a wealth of information for both members and consumers on the insurance products offered for renting and leasing vehicles.  Below is a brief summary of the information and links to further advice.

Check the Quick Links box for a range of advice on insurance. 

Firstly, the sale of insurance products is strictly regulated by the Financial Services Authority (FSA), with very few exemptions.

How are rental products treated by the FSA?

Insurance products which are sold by rental companies, for example, personal accident cover are exempt from regulation provided they cover at a minimum some form of baggage cover.  This exemption is closely scrutinised by regulators and this best practice guide provides advice on selling such products:
insurance selling best practice

Some products, including collision damage waiver, are not insurance products and are therefore outside the scope of FSA regulation.  However, members follow the spirit of the regulation when selling waivers to ensure the highest level of consumer protection.

We have produced a guide to waivers, excess and insurance which can be used to train staff and educate consumers :
BVRLA guide to waivers, excess and insurance

How are leasing products treated by the FSA?

Members who sell or advise on gap insurance, payment protection insurance or provide accident management products need to be regulated by the FSA.  You can either be regulated directly by the FSA or as an appointed representative of another authorised firm, for example an insurance company.  FSA regulation requires you  to adhere to certain selling standards, complaint handling processes and strict processes on how you handle client money.

To determine whether the products you sell require regulation, the BVRLA's fact sheet on insurance mediation provides members with further advice and can be accesed from the link below:
fact sheet - insurance medation

To understand more about being regulated by the FSA click the link below:
www.fsa.gov.uk

Insurance taskforce

A recent survey of BVRLA rental members found that 90% had seen what they considered to be an ‘unjustified’ increase in their motor insurance premiums within the last year. The cost of renewal quotations policy restrictions (i.e. number of vehicles, age of customers), and lack of competition were the top three concerns. To help and support members the BVRLA has set up a working group to explore what steps can be taken on behalf of the wider membership. If you would like more information on this, please contact the BVRLA Legal & Policy Department on 01494 434747 or legal@bvrla.co.uk.

Customer own insurance

Advice and guidance on renting vehicles on a customer own insurance basis.  Read more

Insurance fraud

Assistance on spotting fraudulent claims and fraudulent renters either at the rental desk or claim handling stage.  Read more

Associate members who provide insurance services:

Further information

If you need assistance on insurance regulation, you can contact the legal services team on 01494 434747 or legalservices@bvrla.co.uk.

Other fact sheets relating to insurance include:

VAT on insurance payments

Producing effective loss of use claims

Updating the motor insurance database

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