How to Get Insurance for a Car Rental Business
The business of car rental services has so much going for it and is now one of the most preferred. There are many maintenance related issues related to the fleet of cars, like breakdowns, wear & tear, and accidents etc. The car rental business needs ample insurance covers for possible detrimental situations to save on unwanted and unforeseen expenses. To get perfect insurance covers one should begin with evaluating the needs and then contacting insurance agents for the best quotations.
The Possible Insurance Covers
There are many insurance coverage-plans offered, but making selection that makes sense is vital. Selecting the appropriate plan is important. Because your choice should complement the money spent on them.
It’s suggested discussing at length with an insurance adviser about the insurance covers, its benefits, and downsides.
General Liability Insurance- Out of insurance plans, the general liability insurance is needful that protects you from lawsuits due to mechanical faults in the car, negligence, and other related issues. Here, conventional auto insurance is inadequate to disburse the claim, hence general liability insurance only is more beneficial. You can have the cover for specific liability risk or comprehensive general liability cover that covers third-party claims also.
Cover against property- It is suggested to have a cover against property, expensive gadgets such as computers and machinery, all that you use for the car rental services.
Small business insurance- It is beneficial for the car rental services as they can buy additional insurance for the rented automobiles. The offered costing, terms, and conditions should be studied by contemplating expenses and gains etc. That should be comparable to what you bill your customers.
Auto Insurance- In most of the states, as per state policy the minimum liability insurance is mandatory for giving third-party cover against damages caused by the customers in the shape of accidents. The customers can be offered to buy additional insurance cover when renting the cars, although this their decision to buy or refuse. Hence, it’s always advisable to have the state-mandated minimum cover against repair costs.
Damage Waiver – The Collision Damage Waiver (CDW) and Loss Damage Waiver (LDW) are the plans that are good for the customers and for rental services. If the customers buy it or have these covered in their credit cards they are well protected when a mishap happens. And so are the car renting services.
Process to initiate application
Check the details about the process, after you research on multiple companies and their plans and got focused on certain plans. You need to furnish specific detailed information about your car rental services in the applications which are provided by a car hire agency.
• Name & address of the company
• Detail of cars and models
• Car rental fleet’s valuation
• Valuation of the building of the business, whether own or rented
You need to be precise in furnishing information, if there is something found false, the claim can be denied, or insurance policy canceled as well.
Review of application
Once the application gets the nod of approval, consult an attorney to review the application before signing the contract. You need to be assured of ample insurance and comprehensive benefits of the covers.
