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A Guide to Car Rental Business Insurance
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Car rental business insurance, sometimes referred to as self drive hire business insurance, is a specialist policy for companies that rent out vehicles to members of the public. Whether you run a small fleet rental business or operate a large fleet with a lot of hired cars, a car rental business insurance policy can cater to the unique risks associated with the business.
What type of insurance does a car rental company need?
If you run a vehicle hire or rental business, you will need self drive hire insurance, this is a legal requirement. Typically, you may need self-drive hire insurance to cover your vehicles when customers use them during a specific rental duration or hire period
As a vehicle rental firm, you're faced with risks like vehicle damage, potential liability claims, and damages caused to others by drivers with your rental cars. The self drive hire insurance is a specific type of policy that covers for these unique risks that come with the vehicle rental business.
Depending on the insurance provider, the self drive hire insurance can be referred to as rental insurance, self drive hire fleet insurance, rental fleet insurance and more. You may also want to consider other additional types of insurance coverage like commercial vehicles fleet insurance, general liability insurance, excess liability insurance, commercial property insurance, and workers' compensation insurance.
How does car rental business insurance work?
Various insurance providers may structure their vehicle rental business insurance differently. However, it is common to find options that allow you to pay monthly, annually or on a "pay as you go self drive hire cover" basis. Usually, self drive hire insurance policies will offer static cover, owner use cover, and hire insurance cover.
Static cover will insure your fleet when they are not in use or when they are parked. Owner use cover will provide insurance when you're driving your own rental vehicle. Hire insurance will cover eligible renters while they use your vehicles.
How much is car rental fleet insurance?
There's no one-size-fits-all price for self drive hire insurance because various factors contribute to how much you'll be billed by your insurer.
Some of the factors considered by insurers to determine the cost of your car rental business insurance include your fleet size, your location, your level of coverage, parking area, security systems of your hire vehicles, and any policy add-ons you may opt for.
Basically, when insurers calculate car insurance costs for self drive hire operators, they are evaluating the risks associated with insuring self drive car hire businesses, and the likelihood of that business making a claim. To determine the insurance price plan that works best for you, you'll have to compare different providers and their levels of coverage.
How can I lower the cost of vehicle retal buisness insurance?
You may reduce the cover costs of your self drive hire business insurance by paying for your insurance premiums annually instead of paying monthly instalments. In addition, ensure that you have security systems and measures in place for your rental vehicles and adhere to exclusions and age restrictions stipulated by your insurer, amongst others.
Please note that while it's okay to seek ways to lower your insurance costs, it is also important to ensure that you get the right insurance cover for the risks your business faces.
Are there restrictions when it comes to car rental business insurance?
The common restriction when it comes to car hire insurance is the age of drivers who can rent your fleet vehicles. Typically, your insurance policy may allow you to rent your vehicles to only individuals who are aged around 21 to 70 years and held a driving a licence for at least 2 years. Other conditions will apply so read terms so you can be compliant example restriction will apply for drivers with driving convictions or excessive points on licence
In all cases, your insurers will require you to vet the driving history of individuals before renting out any vehicle to them. Also, the insurance provider may require that the drivers you rent your vehicles must have held their driving licence for a specific period of time (typically 1 to 2 years).
To find out the restrictions and exclusions attached to your car hire insurance policy, ensure that you read the policy documents provided by your insurer to get further details.
Can I add other vehicles to my car rental insurance?
Yes, you can add other vehicles to your car rental insurance policy. With a fleet self drive hire business insurance, you can cover multiple vehicles under one policy, with one renewal date.
So, no matter what kind of vehicles you hire (motorhomes, cars, bikes, or vans) you'll find a policy that meets your needs.
What can I be insured for with self-drive hire insurance?
What you're covered for will vary depending on your insurer and the level of cover you opt for. Commonly, with comprehensive self drive pay as you go hire insurance, you can be insured for rental vehicle losses or damages, fire, theft, legal cover, indemnity to principals, windscreen cover and more.
The amount of coverage you have can be altered based on the demands of your business. You can also add extra features to your policy, like breakdown cover, European cover, off-hire cover, public liability, employers’ liability, etc.
There are three major levels of insurance covers for vehicle rental company insurance, namely:
Steps To Reducing the Cost of Business Rental Fleet Insurance?
Lowering the cost of business multi van insurance quotes entails taking steps to lower your risk in the eyes of the insurance broker. If you pose a lower risk, you should be rewarded with a lower quote.
Who Provides Car Rental Fleet Insurance?
When shopping for a self drive hire insurance, consider the features, price, as well as other terms and conditions that come with the policy. We recommend that you get multiple car rental business insurance quotes before subscribing to any policy. This will help you choose the right cover and insurer for your unique rental business needs.
Did you know? If you rent out vehicles ( Vans, Cars, Bikes, Truck or Motorhomes ) you need a special type of insurance to cover your fleet when hired out and when parked in the car rental parking lot.