In our long-term rental there is no comprehensive insurance (known in Hungary as casco). It may sound odd at first, and other fleet operators may not say it this openly – but anyone who runs a large enough fleet with its own workshop base typically works in a similar way. The car carries mandatory third-party liability insurance (MTPL); own-fault damage, and even total loss and theft, are governed by our contractual damage-cover scheme – with no insurer and no policy, under rules fixed in advance. Important: this is not an insurance product. In return you get a lower fee, minimal paperwork and faster repairs, with no loopholes.
No comprehensive insurance on the rented car
What you see on our car pages as "comprehensive damage protection" is exactly this contractual damage-cover scheme – the two are the same thing. Let us say it plainly: there is no comprehensive insurance on a car rented from us. We did not forget it, and we are not cutting corners – it is a deliberate decision, and not an eccentric one: anyone who runs a large enough fleet with its own workshop base typically works in a similar way in practice.
Mandatory third-party liability insurance (MTPL) is of course in place – the law requires it. Own-fault damage, total loss and theft, however, are settled not by an insurer but by our contractual damage-cover scheme. Important: this is not an insurance product. There is no insurer behind it, no policy, and no licensable insurance activity – it is a set of damage-cover rules fixed in advance, item by item, in the contract, which you can review in full in the contract template. In the case of an MTPL claim – when you are not at fault – we provide a free replacement car for the duration of the repair whenever the downtime exceeds 4 hours.
What does this mean for you?
- A lower monthly fee – the fee includes a lower, statistically based damage cost, not a margin-loaded comprehensive-insurance premium (the background is in the section below).
- Minimal paperwork – no policy to take out and manage, no annual renewal with surprisingly indexed premiums, and no insurer claims process you would have to take part in.
- Faster repair times – we do not wait days for a first damage inspection, then more days for a follow-up inspection after disassembly, then for the insurer to accept liability and the repair quote. After the damage we start the repair immediately – we wait for no one.
- No loopholes – in comprehensive-insurance claims it happens that the insurer deems a part "depreciated" and does not cover the full repair cost. The difference then stays with the client. With us, that risk does not exist: the damage-cover rules are fixed in advance, item by item.
What happens in the event of damage?
- You report the damage to us without delay – through any of the usual channels.
- We start the repair immediately – no waiting for inspections, follow-up inspections or insurer approval.
- The repair happens within the group – at our parent company Bavarian Classics' BMW workshop, with genuine parts and a documented service history.
- The settlement is predictable in advance – the contractual damage-cover scheme fixes your share for every case (own-fault damage, total loss, theft): 10% of the damage, with a defined minimum. The rest is our risk.
If you are interested in the background: why is this cheaper than comprehensive insurance?
The essentials are above; this part is for those who care about the background too.
A comprehensive-insurance premium does not only cover the expected claims: it also includes the insurer's operating costs and profit. There is a fleet size beyond which that margin no longer pays: for a large fleet with its own workshop base, the expected repair cost is predictably lower than what we would pay in comprehensive-insurance premiums to cover the same risk – and that premium would be built into the rental fee, meaning ultimately you would pay it.
Because we can calculate the rental fee with a lower damage-cover cost, we can offer a lower fee: what would go towards the insurer's margin with comprehensive insurance is something you do not have to pay with us.
No comprehensive insurance – not because we leave something out, but because on a fleet with its own workshop base it would be the more expensive and slower solution.
Related:
Frequently asked questions
Is the deductible higher this way?
No. Our contractual damage-cover scheme recognises "own-fault damage": in that case – similarly to comprehensive insurance – you pay 10% of the damage, subject to a defined minimum amount. This is predictable and fixed in the contract.
What if the car is a total loss, or gets stolen?
The contractual damage-cover scheme applies here too, under rules fixed in advance. Your share is again 10% of the damage (with a defined minimum) – the remaining loss, which can run to tens of millions of forints, is ours to bear, since the car is our property. This is also why no GAP cover is needed.
Do I need GAP insurance for an extra fee?
No. GAP exists so the financing party can secure its own recovery – that is a risk on our side, not yours. What we commit to you is an even monthly fee and mobility; how we finance the car behind that is not your cost or your risk.
Do I get a replacement car?
For an MTPL claim – when you are not at fault – we provide a free replacement car for the duration of the repair whenever the downtime exceeds 4 hours. For own-fault damage we can provide one for a fee – and that would be no different with comprehensive insurance. The difference is the repair time: it matters whether you need a replacement car for two weeks or a month and a half. With us, the repair starts immediately.
Do I have to take out separate comprehensive insurance on the rented car?
No – and you could not: the car is our property, and damage is settled within our contractual damage-cover scheme. There is nothing for you to do.
How do I find out the exact terms?
Request an offer. If the offer works for you, ask for a contract template – compare the terms with a comprehensive-insurance policy – we believe the comparison holds up.
