What is the minimum required amount for Budget fleet insurance, specifically for bodily injury?
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. |
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–34)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, franchisees are required to maintain fleet insurance with minimum coverage amounts. The minimum required amount for bodily injury is $100,000 per person and $300,000 per accident. Additionally, the franchisee must maintain $50,000 per occurrence for property damage, or such other amounts as are required by local law.
This requirement ensures that Budget franchisees have adequate financial protection in the event of an accident involving their rental vehicles. The specific amounts are set to cover potential liabilities for bodily injury and property damage, safeguarding both the franchisee and third parties. Franchisees need to verify that their insurance policies meet or exceed these minimums to comply with Budget's standards.
It is important to note that the required insurance amounts may vary based on local laws. Therefore, franchisees should consult with their insurance providers to ensure they have the appropriate coverage for their specific location. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement and potential penalties.