I. INTRODUCTION

Insurance replacement rentals present some unique challenges to the standard RA Open and Close programs.

  1. Usually insurance companies will agree to be responsible for only a portion of the charges on a replacement rental. As a result, the Direct Bill subwindow is inadequate because some of the charges are paid by the driver/renter. (The direct bill logic assumes all charges should be billed to the direct-bill customer.)
  2. Insurance companies also limit the number of days for which they can be invoiced. Therefore, days beyond the authorized period must be billed to the driver/renter.
  3. Extensions to the authorized rental period must be handled efficiently.

CARS+ procedures for replacement rentals are designed to meet these challenges. These same procedures can be used for body shop and garage replacement rentals.

II. DIFFERENCE BETWEEN INSURANCE AND WHOLESALE (TOUR) VOUCHERS

The following chart summaries the main differences in CARS+ between insurance vouchers and wholesale vouchers.

Feature
 Insurance Vouchers
 Wholesale Vouchers
Rates
 Insurance vouchers use retail rates
 Wholesale vouchers use net rates or a percentage off of the rental's retail rates
Voucher value
 The value of Insurance vouchers are visible to the counter agent. The insurance rates are visible
 The value of the voucher is "Hidden" from the counter. The net rates used by the voucher are not visible.
Extensions
 Logic exists to enter extensions to the original voucher period.
 Extensions to the original voucher period are not allowed.


III. FOUR LOGIC CHOICES

Because insurance replacement requirements vary around the world, CARS+ currently supports the following four types of insurance replacement methods:

A. Insurance vouchers that cover a specified number of rental days and are entered into the I subwindow.

B. Modified insurance vouchers entered into the S subwindow.

C. Insurance vouchers that cover a percentage of T&K charges.

D. Insurance vouchers that cover a percentage of all rental charges.

The following chart gives a brief comparison of these four methods. In addition, a separate, detailed Overview chapter exists for each method.

Feature
 A. I Subwindow Vouchers
 B. S Subwindow Vouchers
C. Percent of T&K Vouchers
 D. Percent of all Charges Vouchers
Entered into
 The I Subwindow
 The S Subwindow
 The I subwindow
 The I Subwindow
Insurance Company is set up in
 The Customer File
 The IT File
 The Customer File
 The Customer File
Billing Insurance Company for charges other than Time
 Additional options can be added to the voucher
 Additional options can be added to the voucher If options other than Time and Mileage are added to the voucher, the insurance company is invoiced for 100% of those items for the voucher period.
By definition, a portion of all charges are charged to the ins company
Number of rates in a transaction
 Two:
Ins Voucher Rate
Rental Rate
 Three:
Ins Voucher Rate
Rental Rate for the voucher period
Rental Rate for days beyond the voucher
 One:
Rental Rate
 One:
Rental Rate
Calculation example 1: 5 day voucher at $25/day
 Insurance voucher = 5 days at $25/day = $125.00
 Insurance voucher = 5 days at $25/day = $125.00
 Insurance voucher = 75% of $125.00 = $93.75
Renter = 25% of $125.00 = $31.25
 Insurance voucher = 75% of total charges (time, coverages, taxes, options, etc.)
Renter = 25% of total charges
Calculation example 2: 5 day voucher on a 6 day rental at $25/day
 Insurance voucher = 5 days at $25/day = $125.00
Renter = 1 day at $25/day = $25.00
 Insurance voucher = 5 days at $25/day = $125.00
Renter = 1 day at $35/day = $35.00 (out of voucher days are at a different rate)
 Insurance voucher = 75% of $125.00 = $93.75
Renter = 25% of $125.00 + 100% of the extra day = $56.25		 Insurance voucher = 75% of total charges (time, coverages, taxes, options, etc.)
Renter = 25% of total charges
(These vouchers are NOT sensitive to voucher days)
Calculation example 3: 5 day voucher on a 5 day rental, rental rate = $30/day, insurance company rate = $25/day
 Insurance voucher = 5 days at $25/day = $125.00
Renter = 5 days at $5/day (the difference between the voucher rate and the rental rate) = $25.00		 Insurance voucher = 5 days at $25/day = $125.00
Renter = 5 days at $5/day = $25.00		 Insurance voucher = 75% of $150.00.00 = $112.50
Renter = 25% of $150.00 = 37.50
(under this method there is no ins voucher rate. The percentage is applied to the rental rate, in this case $30/day)
 Insurance voucher = 75% of total charges (time, coverages, taxes, options, etc.)
Renter = 25% of total charges
(Like the Percent of T&K Vouchers, there is no separate voucher rate)
Calculation example 4: 6 day voucher on a 5 day rental, rental rate = $30/day, insurance company rate = $25/day Insurance voucher = 5 days at $25/day = $125.00
Renter = 5 days at $5/day (the difference between the voucher rate and the rental rate) + 1 day at $30 = $55.00		 Insurance voucher = 5 days at $25/day = $125.00
Renter = 5 days at $5/day + 1 day at $35 = $60.00		 Insurance voucher = 75% of $150.00.00 = $112.50
Renter = 25% of $150.00 + 100% of the extra day = 67.50
 Insurance voucher = 75% of total charges (time, coverages, taxes, options, etc.)
Renter = 25% of total charges


IV FOR MORE INFORMATION

For more information click on the links below for each method:

A. I Subwindow Vouchers

B. S Subwindow Vouchers

C. Percent of T & K Vouchers

D. Percent of all Charges Vouchers