August 15, 2023
Car rental identity fraud and vehicle damage are rising nationwide concerns for the vehicle rental market. The cost of stolen rental vehicles due to fraud is conservatively estimated at around $152 million per year.
Car rental and peer-to-peer carsharing fraud starts with criminals stealing identities to rent or share a car and then never returning the vehicle. Often these stolen vehicles are used to carry out more egregious crimes such as arson, drug trafficking, controlled substance violations, kidnapping, burglary, robbery, and/or weapons violations. It’s imperative for car rental and sharing companies to take proactive steps to create a safer and more trusted community experience and protect their bottom line.
Three effective methods of reducing vehicle fraud and damage are by up-leveling your trust and safety efforts and reducing vehicle fraud and damages by 1) performing strong ID verification, 2) performing a nationwide criminal database search, and 3) looking up driver history records.
Let’s explore how these three methods create value:
When evaluating a potential client’s MVR, it’s essential to look for red flags such as license suspensions, multiple traffic infractions, or a history of accidents. Renters with poor driving records are more likely to be involved in incidents that could result in damage to your vehicles. By screening prospective renters when they onboard you will prevent unnecessary claims and costs related to insurance and damage payouts.
Leveraging our ID Verification, Criminal Database, and Driver History products in your rental or carsharing workflows offers powerful tools for renter risk assessment.
An ID verification typically ends at biometrics matching (like an uploaded picture ID or selfie). Our comprehensive ID verification solution goes further to complete the ID verification chain; in addition to biometrics matching and confirmation that the license is authentic, we additionally check to ensure the license was legally registered through a trusted source (further confirming its legitimacy).
We do this through our partnership with the American Association of Vehicle Administrators (AAMVA.org) which empowers our offering to deliver near-instant turnaround times (TAT) against trusted and authoritative data sources (like the DMV).
Once you know your potential renter is who they say they are, take another protective step by doing an instant search of our national criminal database. This search allows you to identify renters with a history of fraud, theft, and other egregious criminal activities before they rent their first car.
You can easily integrate our data feed into your new user onboarding flow. Using limited PII (i.e. their name and date of birth), in seconds you can retrieve a simple “safety screening” confirmation of existing records and pause their onboarding process for further investigation. For the users without records or flags, they will continue sailing through your process without friction and will be on their way to booking their first rental.
Finally, our driver history product helps you evaluate driver risk and determine the likelihood of damage to your vehicles as a result of poor driving habits or past convictions. You can similarly integrate our database feed via API into your onboarding flow to scan for suspended licenses or other activities. Our Driver History product does the hard work of standardizing the output for all 51 jurisdictions allowing customers to easily make decisions regarding risk and privilege to drive? This standardization allows you to apply rules to the data based on what is important to you.
Incorporating this trifecta of data into your rental process can be very quick, efficient, and cost effective. Imagine paying cents per user compared to thousands of dollars in damaged, stolen or other insurance claims and payouts. Establishing a more secure process for renting/sharing vehicles can also deter bad actors looking for an easy target.
In closing, modernizing your trust and safety processes via our Safety Trifecta–IDV, Criminal Database, and Driver History integrations–offers a comprehensive and trusted solution that will result in serious cost savings for your car rental or carsharing business.
We’re committed to the success of your car rental or carsharing business, and are excited to hear more about your business goals and challenges.
Learn more about our Criminal Database, Driver History and ID Verification solutions for businesses like yours by booking time with our amazing Sales team: