What is the primary purpose of underwriting in car rentals?

The primary purpose of underwriting in car rentals focuses on evaluating the risk associated with renting a vehicle to a customer. This involves assessing factors such as the customer's driving history, creditworthiness, and the likelihood that they will return the vehicle in good condition and on time. By determining finability and fundability, car rental companies can make informed decisions about whom to rent vehicles to, manage potential losses, and establish appropriate rental terms.

This process allows the company to minimize financial risk while ensuring they are providing their services to reliable customers. Any other choices do not embody the essence of underwriting, which is fundamentally about risk assessment and management related to customer transactions.