If you’re in the vehicle rental industry (heavy equipment, truck & trailer, or auto), you face numerous challenges. However, the biggest issue is damage disputes. Unresolved claims can ultimately lead to financial loss, but you can also strain relationships with your customers and suffer from operational inefficiencies.
When disputes come up about a vehicle’s condition, you might have to deal with a difficult claims process. Being unable to document everything could result in lost profits, higher expenses, and negative customer experiences.
Let’s learn more about the true cost of these unresolved claims and how Record360 can solve those issues.
What the Insurance Company Claims Office Does
Whenever your rental asset is damaged, it’s important to look through the insurance policies to determine the next step. Typically, you’ll contact the claims office to start the process.
Total Cost of Unresolved Claims
Many factors can raise your rental company’s expense, preventing it from being competitive in the industry. Here is a list indicating the total cost of unresolved claims:
- Repair Costs for the Rental Vehicle – you may face significant out-of-pocket expenses for the vehicle repair if the damage dispute can’t be resolved
- Loss of Use of the Rental Vehicle – businesses can lose customers when a vehicle is out of service because of damage
- Administrative Costs – employees must spend time handling disputes, filling out paperwork, and dealing with the insurance company
- Value Depreciation – a damaged vehicle will often have a lower selling price, so the company’s long-term revenue suffers
- Law Issues – if the customer was hurt, they may file a personal injury claim. Your company may have to pay for medical bills, lost wages, and damaged personal property
- Customer Compensation – typically, businesses like yours will offer discounts or refunds to customers, which leads to higher operational costs.
How Does Record360 Reduce the Cost of Damage Claims Filed?
When you choose Record360 as part of your fleet management strategy, you will see these benefits:
1. Digital Documentation
Record360 helps you capture videos and photos before and after each reservation. There is clear evidence of the vehicle’s condition, which will ensure you save money by avoiding legal issues and unwarranted claims.
2. Operational Efficiency and Cost Reduction
Employees often have to gather evidence of the damage and respond to disputes, so they can’t service other vehicles. With Record360, they can reduce time spent on these tasks and concentrate more on core operations that generate revenue.
3. Protecting Vehicle Value and Profit Maximization
If you don’t properly document the rental vehicle damage, your vehicle might drop in value. This is related to price elasticity, as the demand for goods is influenced by others’ perceptions.
Whenever you’re the one requesting a higher selling price, the vehicle needs to be in the best shape possible with thorough records of any prior damages
Why Record360 Is the Best Solution for Rental Businesses
Whether your rental company is in the USA or abroad, it’s crucial to handle damage claims effectively to remain profitable. Record360 offers a cost-effective way to improve fleet management, protect your assets, and ensure dispute resolution.
When you transition to digital documentation, you can build customer trust, reduce financial issues, and save money. Request a demo today to see how Record360 can benefit you!
