Owning your own car service or offering car drivers for hire can be very lucrative business opportunity. While this type of business might be bringing you in the cash, if you don’t carry the right insurance for car hire policy it can end up costing you hundreds of dollars.
The problem is with so many insurance companies out there and so many difference policies to choose from how do you know which one is right for your company. Here’s a look at some of the different options available for your car hire insurance policy, and why you may or may not need to add it to your policy.
Liability Insurance
Almost all basic car service and car for hire companies are required by law to carry liability insurance. Liability insurance will protect you from any accident a driver gets into while operating a company vehicle.
Some car service companies believe that they can require their drivers to carry their own insurance policies. This will work on a basic level for your company but it will not cover your business from any lawsuit or damages that could happen as a result of an accident.
Collision Insurance
Collision coverage on an insurance for car hire policy is very similar to regular passenger car insurance collision coverage. Choosing to have this type of coverage on your company’s insurance policy will help cover any damage that a company vehicle receives as a result of an accident.
Theft Coverage
When your company relies heavily on a fleet of vehicles to make money it can be detrimental to business if a car or truck is stolen. Not only is your company out the money that you would normally bring in from having that car out on the road, but you could potentially have to pay to replace the car. Some insurance companies offer your company protection against the theft of your company cars. In the case that a company car is stolen, your policy will replace the cost of the car or make up for some of the lost revenue your company has as a result of the missing car.
Vehicle Damage
Damage to cars in your company’s fleet can also result in a direct loss of income. Insurance companies offer many options to protect your company’s car from damage. You can add protection against vandalism to your policy. This will cover damage that happens to the windows, tires and exterior of any company car.
Another option for coverage against damage to the car that is a direct result of mother nature or extenuating circumstances. In this case, damage could include wind or storm damage, dents to the underside of the car, or tire problems as a result of nails or debris on the road.
It is vital that you carry an insurance for car hire policy that will cover the needs of your company. While liability insurance is almost always required, most insurance companies will allow you to pick and choose the other types of insurance coverage you need to protect your car service or car for hire company.