What type of insurance verification is required for drivers aged 18-20?

The requirement for full coverage insurance in the renter's name for drivers aged 18-20 is essential due to several factors related to risk management in the insurance industry. Younger drivers, particularly those in this age group, are statistically more prone to accidents and claims, which increases the risk for insurance companies.

Full coverage insurance typically includes both collision and comprehensive coverage, providing more extensive protection against damages to the vehicle as well as liability coverage for damages to others in the event of an accident. By mandating full coverage for drivers in this age range, it ensures that they are adequately protected and that the insurer can mitigate potential financial losses.

Moreover, having full coverage in the renter's name confirms that the insurance policy is valid and applies specifically to the individual renting the vehicle. This is especially important in rental scenarios where the responsibilities and liabilities need to be clearly defined. Thus, requiring full coverage insurance not only serves to protect the young drivers but also helps rental agencies and insurers manage their risk more effectively.