For those who are not aware, there is a database somewhere (in the sky ha) that keeps track of all insurance claims. When you get insurance that database is checked for previous claims. If you have cart insurance that covers the renter and he/she has an accident, it will be connected to you and affect your rates from that point on. As others have pointed out, a claim could also be more than the policy's liability limit. Someone could come after your assets.
Someone posted on this forum once that he (allegedly) got around these problems by "selling" the cart to the renter for some nominal amount with the sales contract stating that the renter agrees to "sell" it back to the owner at the end of the rental period for the same amount. In this scenario (scheme?), the renter then went out and bought his own policy because he had become the owner. I have no idea if such a plan would actually protect one's assets. Might be worth talking to a lawyer.
kathy
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