Car hire federations step in to help independent outlets over insurance

A number of local car hire companies are now having to try and find new insurance firms after Lloyds of London announced last Saturday that it is no longer prepared to insure rental cars. However, for many care hire companies, a new insurance company will not be needed until the end of the forthcoming summer season, when policies expire. But, the Balearic and national Car Hire Federations have stepped in to help try and find new insurance companies and help those rental agencies whose policies expire over the next few months. One local car hire owner, who said that while the news is “a worry,” the majority of his fleet is insured until November, admitted that some outlets whose policies run out before Easter will have problems getting cars insured in time for the Easter break. Following a statement in which the rental car sector called on the car hire Federation for help in sorting out the situation “about which nobody appears to know what is going on,” help is at hand for the independent rental companies, some of which have been forced to withdraw vehicles from the road already and others who will have to park up some their fleet over the next few weeks. The fact that Lloyds apparently gave little warning has not helped the situation, but the insurance company's move appears to be an isolated one with a number of other insurance companies being swamped by inquiries from the independent car hire sector in need of new insurance policies.