Another Insurtech Niche: Car Rentals

Pablow, an insurtech startup created to provide on-demand travel insurance products globally, is making car rental insurance available via its platform. The initial release is through, a brand created to reduce the cost to insure rental cars in the U.S.

“Millions of travelers each year fall victim the insurance trap at the rental car company’s pickup counter.” said Steve Sherlock, co-founder of Pablow. “Many travelers don’t realize that there is a low-cost alternative to the $40 per day rental car insurance offered at the pickup counter. We are able to offer primary insurance covering $35,000 in damage for just $7.99 a day. Additionally, the policy carries a zero-deductible meaning the renter neither has to claim on their car insurance policy nor risk a hefty deductible or potential premium hikes.”

Offering insurance on is the result of Sherlock’s determination to provide travelers with an affordable and convenient protection alternative to the US rental giants’ exorbitant rental car insurance.

The United States car rental insurance market that Pablow is estimated to be about 110 million reservations made by 70 million customers each year renting an estimated $28 billion worth of cars, according to 2016 market data.  The problem with the market right now, as industry expert Ed Perkins explains, “is that rental companies grossly overcharge for collision coverage. Typically, you can pay up to $30 a day — sometimes even more than the base rental rate. It’s a huge profit center.”

Pablow has partnered with Arch Insurance Group to underwrite the car rental damage insurance policy across the country. As a digital agency licensed in all 50 states and D.C., Pablow is on a mission to democratize accessibility to travel insurance by streamlining the entire distribution process, while helping large insurance companies – like Arch – to onboard new distributors in realtime. Travel brands are now able to access both vacation rental trip cancellation and car rental insurance products from Pablow’s realtime onboarding process called Pronto.

A 2015 graduate of the Global Insurance Accelerator cohort, Pablow’s commitment to the travel insurance segment has enabled the company to build trusted relationships with respected insurance company partners, including IMG, Allianz Global Assistance, AIG Travel Guard, Arch and iTravelInsured.

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