What are the minimum Fleet Insurance coverage amounts required for a Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Insurance | Minimum Amount |
|---|---|
| Fleet Insurance | $100,000 / $300,000 bodily injury and$50,000 per occurrence for property damage, or such other amounts as are required by local law. |
| Lessor’s / Owner’s Excess Liability Insurance | $1,000,000 combined single limit per occurrence |
| General Liability Insurance | $1,000,000 combined single limits |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 34–37)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, franchisees must maintain fleet insurance with minimum coverage amounts. The required coverage includes $100,000 for bodily injury per person, $300,000 for bodily injury per accident, and $50,000 per occurrence for property damage. However, the FDD also states that franchisees must maintain such other amounts as are required by local law.
In addition to fleet insurance, Budget franchisees are also required to maintain Lessor’s / Owner’s Excess Liability Insurance and General Liability Insurance. Both of these insurance types must have a minimum coverage of $1,000,000 combined single limit per occurrence.
Prospective franchisees should be aware that Budget may periodically increase the required insurance amounts or require different or additional kinds of insurance to reflect factors such as inflation, changes in liability standards, higher damages, the franchisee's specific claims history, or other relevant circumstances. Franchisees must also provide Budget with a current certificate of insurance annually, naming Budget and its affiliates as additional insureds, and the insurer must waive any subrogation rights against Budget.