Insurance
I am thinking about starting a rental car company in my area a region that is fairly underserved. My fleet will be very small (i.e. less than 5 cars) and the people renting them will, for the most part, not be very wealthy. As a side note some of the cars we may rent out will be leased or financed from a regional dealer. Thanks!
4
Answers
Entrepreneur & Business Strategist
I have a lot of experience working with specialty insurance brokers who can build custom policies if necessary depending on what you are trying to build (eg, new carshare, rideshare services).
If it is a traditional car rental program, you'll need to find a broker who provides that type of insurance. You could try asking local rental companies who they work with and ask for a referral. Having a small fleet and working with low income populations (eg, possibly no credit cards) adds some risk and challenge for getting set up. You said "some" of your cars will be leased. What about the others? The first question you need to answer is 'who owns the cars'. If you are trying to do something peer-to-peer, it will add cost and complexity and there are fewer options for who you can work with. I'd suggest doing one or the other and avoid mixing the two.
Happy to discuss in more detail on a call.
Answered almost 11 years ago
CPA and Chartered Accountant
It is difficult to obtain appropriate insurance coverage, when starting a rental car company. Here are some considerations to look for insurance:
1) Reach out to insurance brokers or agent
2)Consider reaching out to industry associations related to car rental companies, such as the American Car Rental Association (ACRA)
3)Explore regional insurance companies that cater to businesses in your specific area
4) Research and contact commercial auto insurance providers
Additionally, consider consulting with an insurance professional who specializes in commercial insurance
Answered almost 3 years ago