Insurance: what the agency pays, what the customer pays

The difference between the policy an agency pays its insurer and the insurance charged to the customer on each car: included cover and upgrades, calculation modes and examples in MAD.

DriveGo keeps apart two things that are easy to mix up:

	Insurance policy	Insurance fees
What it is	The contract the agency pays its insurer	What the customer pays to be covered on a car
For the agency	An expense	Revenue
Linked to	An agency and the list of cars covered	One car
Who sees it	The owner and the finance manager in full; other agency members without the premium or the excess	The owner, the manager, the finance manager and the fleet manager; the customer sees the options when booking
Where	Insurance policies	Insurance fees per car

On a car's fees screen, both appear together: the active policy at the top, the fees charged to the customer below.

The insurance policy

The policy describes the agency's contract: the insurer, the policy number, the type of cover (Comprehensive, Third party, Theft, Collision), the start and end dates, the premium and how often it is paid (Annual, Semi-annual, Quarterly, Monthly), the excess, the cars covered and the contract documents.

Status	When
Active	The end date is more than 30 days away.
Expiring soon	The end date is within 30 days.
Expired	The end date has passed.
Cancelled	The agency has cancelled the policy.

DriveGo recalculates these statuses every night. The agency owner and manager are told 30, 7 and 1 days before the end, and an alert appears on the dashboard.

The premium is an expense for the agency. It appears on the "Insurance cost" line of the finance dashboard and counts in the estimated net profit.

Insurance fees charged to the customer

For each car, the agency creates one or more options. Each option has a name the customer sees (for example "Standard"), a type, an amount, a calculation mode, the customers it applies to (All, Individual or Company), a duration range, valid dates and a description.

The eight option types

Type	In plain words
Basic insurance	The minimum cover for the rental
Standard insurance	Wider cover
Premium insurance	The widest cover offered
Excess reduction	The customer pays less if there is a claim
Third-party cover	Damage caused to others
Full cover	All damage covered by the option
Theft protection	Theft of the vehicle
Roadside assistance	Breakdown help and towing

The four calculation modes

Mode	Amount of the line
Per day	amount × days charged
Fixed per booking	the amount, once
Percentage of the booking	net rental × percentage ÷ 100
Included	MAD 0.00, shown "Included" in the price breakdown, never hidden

Net rental is the rental price after the duration or company discount. See How the price is calculated.

When an option is offered

An option is offered for a booking when it is active, the pickup date is within its valid dates, the customer type matches and the number of days is within its range.

Included or upgrade

A car has one option included in every booking: its basic cover.
Options marked Upgrade are offered at the "Extras and insurance" step of booking, with their amount calculated for your dates.
You choose one upgrade only. Choosing Premium replaces Standard: they do not add up.
Rental extras (additional driver, GPS, child seat, roadside) are something else: they add up.

Insurance charged = included cover + the upgrade chosen, if any.

Entry rules for the agency

The app refuses to save an option when:

another active option is already included for this car;
the option is both included and an upgrade;
a percentage is not between 0 and 100;
the minimum duration is longer than the maximum.

While you fill it in, a preview shows the amount the customer will see, for example "For a 3-day individual rental this adds MAD 45.00".

Worked examples

For all examples: an individual rents a car for 4 days, net rental MAD 1000.00.

Example 1: the four calculation modes

Option	Mode	Calculation	Line
Basic, included	Included	nothing	MAD 0.00, "Included"
Standard	Per day, MAD 25.00	MAD 25.00 × 4	MAD 100.00
Excess reduction	Fixed, MAD 150.00	MAD 150.00	MAD 150.00
Full cover	Percentage, 8	MAD 1000.00 × 8 ÷ 100	MAD 80.00

These are the lines shown at the "Extras and insurance" step; the customer keeps only one on top of Basic.

Example 2: one upgrade replaces another

The customer first picks Standard (MAD 100.00), then switches to Premium, per day at MAD 45.00: MAD 45.00 × 4 = MAD 180.00.

Choice	Insurance charged
No upgrade	MAD 0.00 (Basic included)
Standard	MAD 0.00 + MAD 100.00 = MAD 100.00
Premium instead of Standard	MAD 0.00 + MAD 180.00 = MAD 180.00

The price breakdown then shows "Insurance (Basic, included) MAD 0.00" then "Insurance upgrade (Premium) MAD 180.00". Standard no longer appears.

Example 3: an option ruled out

Option	Condition	Offered for these 4 days to an individual?
Roadside assistance, fixed MAD 60.00	From 7 days	No, 4 days is below
Fleet cover, MAD 20.00 per day	Companies only	No, the customer is an individual
Theft protection, MAD 10.00 per day	Valid until 31 October, pickup on 2 November	No, outside the dates
Standard, MAD 25.00 per day	All customers, 1 to 30 days	Yes, MAD 100.00

Example 4: a percentage is calculated after the discount

Same car, 4 days, rental price MAD 1100.00 with a MAD 100.00 duration discount: net rental is MAD 1000.00. An 8 % option is calculated on the net rental: MAD 1000.00 × 8 ÷ 100 = MAD 80.00, not MAD 88.00.

In the booking and the invoice

Insurance appears in the price breakdown, after the discounts and before the extras, then on the rental invoice. It is included when taxes are calculated. For the agency, it counts in the "Insurance" revenue of the finance dashboard. The amount is frozen in the booking when it is confirmed.