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Is it legal in the US for a company that rents out car parking spaces, to bundle the renting of a parking space to buying insurance for the content of the parked car?

I.e. the company refuses to let a customer rent a parking space, unless he/she also purchases insurance for the content of the car, even if the car is empty, or is full with junk.

(In general, it is not mandatory in the US for car owners to insure the content of their car.)

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  • One may contract for any legal purpose, and the owner/lessor of the parking space could very reasonably believe that owner/lessor liability (or at the least the hassle factor) will be reduced if the lessee has this insurance. Why do you think requiring insurance might contrary to law? – DavidSupportsMonica Aug 31 '20 at 20:48
  • The lessor knows they have no liability whatsoever. The motivation is to upsell. Bundling may be illegal. – rapt Sep 4 '20 at 7:32
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Is it legal in the US for a company that rents out car parking spaces, to bundle the renting of a parking space to buying insurance for the content of the parked car?

Yes. Honestly, I'm a little surprised that I've never see this practice in real life.

All things not prohibited are allowed, and there is nothing, per se illegal about bundling services and requiring them to be purchased as a package deal (there may be some licensing issues for insurance sales involved, but those would probably be easily overcome).

Sometimes bundling gives rise to an anti-trust violation, but neither the parking lot operation business nor the car insurance business are so consolidated that this would fairly be viewed as some kind of anti-competitive practice.

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    This happens a lot at long-term storage facilities. – Ron Beyer Aug 31 '20 at 21:03
  • I think insurance is something different than other stuff. Forcing a person to buy insurance to cover non-existent property seems a steal. You can never make a claim since there is nothing to cover. – rapt Sep 11 '20 at 23:22
  • @rapt The alternative would be for the firm to assume liability contractually up to its policy limits and buy its own insurance policy. Economically equivalent and legally untroubling. – ohwilleke Sep 14 '20 at 22:12

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