Preserving Free Trade and Fair Insurance Practices In the Auto Rental Industry

We, the undersigned, petition the members of the 50 state legislatures
to enact legislation in their respective states that would broaden
the definition of 'unfair claims practices' in each state to include
the refusal to honor a 'direction to pay' for the direct payment of a
replacement vehicle rental benefit to a willing provider of a rental
car of the insured's choice if the insurance policy does not specify a
particular car rental provider as an exclusive vendor. It is our
belief that all willing providers of car rentals should be treated
equally by insurance companies, specifically in the ways in which
reimbursements are made and the ways in which referrals are sent. We
further support legislation making it illegal for insurance companies
to earn a profit from steering business to "preferred providers".

It is our firm belief that these unfair claims practices restrict free
trade and create a monopolistic market that injures consumers through
unduly high prices and poor customer service.

Insurance companies pay vehicle replacement benefits as part of their
auto insurance product lines, representing annually an estimated $5
Billion dollar segment of the total 2003 US auto rental industry
(source: Auto Rental News Fact Book 2003).

Exclusive arrangements between insurance companies and car rental
vendors are cloaked within exclusionary billing arrangements, which
subtly direct the vast majority of replacement vehicle business to a
single auto rental company.

Insurance companies participating in this arrangement will direct bill
only their 'preferred' car rental vendor. A consumer wishing to rent
their replacement vehicle elsewhere must pay for their rental out of
pocket and submit the bills for subsequent reimbursement from the
insurance company. This creates an uneven playing field for willing
providers of replacement vehicles, depriving consumers of the benefits
of free trade, namely lower prices and better service.

The changes we seek through legislation are simple: Insurance
companies must treat all willing providers of rental vehicles the same
if the insurance policy does not state that one specific provider must
be used to receive the benefit.

We have signed this petition and distributed it as widely as possible
in hopes of ending this unfair, unethical and exclusionary practice,
and in the interests of preserving a free market and competition in
the auto rental industry.