Commercial Insurance for Rental Cars

Rental cars offer convenience for international travelers, car owners, and business owners. Even so, people running the industry face numerous risks, including car theft, vandalism, collision incidents, and third-party liability. Without adequate protection, players in the industry face substantial financial losses, which can put businesses on the brink of closure. Road hazards and other risks highlight the need for a risk management plan, including commercial insurance for rental cars. If you’re looking to protect your investment from potential losses, consider speaking to a commercial car insurance professional.  

How Does Commercial Insurance for Rental Cars Work?

Commercial car insurance for rental cars is a package specifically designed for vehicles rented out for short periods to the public. It’s a contract between you and the insurance stipulating how the insurer compensates for your financial losses if the vehicle is involved in an accident or any other issue covered in the policy. Commercial insurance for rental cars works like commercial car insurance with a bias to vehicles hired for short periods. All commercial insurance packages are not similar, highlighting the need to acquire additional business insurance protection as may be needed based on an individual operation.  

What Does Commercial Insurance for Rental Cars Cover?

  Although commercial insurance for rental cars is similar to commercial car insurance, it differs on who’s eligible, exclusions, limits, and coverage.  Below are the types of coverage:

• Property Damage Liability: It is part of the insurance policy that helps pay for the repair or replacement damage caused to a vehicle or a property belonging to a third party. Property damage liability doesn’t cover the damages to your car if you’re at fault for the accident.

 

• Bodily Injury Liability: Bodily injury liability pays for someone else’s hospital care and emergency services if your rental car causes an accident. It also helps cover expenses like doctor visits and medical accessories like a wheelchair.

 

• Comprehensive Insurance: It is an optional coverage that caters to damages caused by non-collision events beyond your control, including theft, fire, falling objects, collision with animals, extreme weather, and acts of nature.

 

• Uninsured Motorist Coverage: It covers financial losses caused by a driver who doesn’t have car insurance. If you’re hurt or your car is damaged due to a fault of an uninsured driver,  this coverage pays for the costs; however, the extent of protection depends on the limit of your policy.

  Commercial insurance for rental cars also has collision insurance to pay for repairs or replacement damage that the vehicle suffers after an accident.  

Protect Your Business with a Northridge, CA Commercial Car Insurance Agency

If a traveler is injured in your car, the victim may sue you for compensation due to life-altering injuries. Similarly, you may be called upon to pay repair or replacement expenses if your vehicle is involved in an accident that damages property belonging to a third party. With that in mind, it pays to anticipate and prepare for such losses by acquiring commercial insurance for a rental car. At Panorama Insurance Agency, we’ve been in the insurance business since 1973, which gives us an edge in choosing an ideal package for our clients. Contact us online or call us at 818.658.2867 to request a free quote.