What factors influence the vehicle insurance premiums for a Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ocal custom. Security deposits usually are refundable if you comply with the lease during its term.
-
- Your vehicle insurance premiums will vary based on your initial fleet size, your vehicle mix, the state in which you insure your vehicles, and whether or not your insurance is issued as part of an assigned risk pool. Your premiums will also vary if you chose to retain the risk of loss for damage to and theft of your vehicles, if you qualify as a duly authorized self-insurer, and if you chose to self-insure for third-party liability, with Budget's consent. Budget used an estimated cost of $2000 to $5000 per vehicle per annum to calculate these figures for the cost of obtaining insurance coverage for vehicle damage, theft, and thirdparty liability from vehicle accidents based on payment
Source: Item 7 — ESTIMATED INITIAL INVESTMENT(1) (FDD pages 29–32)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, several factors can influence the vehicle insurance premiums for a Budget franchise. These include the initial fleet size, the mix of vehicles in the fleet, and the state in which the vehicles are insured. If the insurance is issued as part of an assigned risk pool, this will also affect the premiums.
Another factor influencing the premiums is whether the franchisee chooses to retain the risk of loss for vehicle damage and theft. Premiums will also vary if the franchisee qualifies as a duly authorized self-insurer, or if they choose to self-insure for third-party liability, with Budget's consent.
Budget estimates that the cost of obtaining insurance coverage for vehicle damage, theft, and third-party liability from vehicle accidents ranges from $2,000 to $5,000 per vehicle per year. This estimate is based on payment of annual or semi-annual premiums in monthly installments for the first three months of operation. This figure is used to calculate the estimated initial investment for a new Budget franchise.