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Renting a car is as economical as renting a bike. In connection, the car rental industry generates approximately $58.34 billion and is projected to grow to $144.21 billion by 2027. While highly lucrative, there’s no doubt that the business comes with its share of risks.
That’s why you need commercial insurance for rental cars for your business.
This article features,commercial insurance for rental cars, what this is, how much it costs, policies available and the best companies offering it.
Liability insurance insurance for car rental takes care of claims filed against your car rental business.
General liability insurance, employment practices liability insurance, cyber liability insurance, and employer’s liability insurance are the most common liability policies included in the insurance for car rental companies.
General liability insurance (CGL) is the most common insurance for car rental business and is often included in business auto rental insurance programs.
This insurance for car rental business provides protection when your business is liable for the damages incurred by third parties. Specific risks covered are:
Insurance companies underwriting general liability coverage for car rentals will allow you to avail the following optional inclusions in the policy:
Insurance companies offer commercial auto insurance as a stand-alone policy or as an inclusion in the specialized insurance for car rental businesses. Usually, this commercial insurance for rental cars will provide the following coverages:
Typically, commercial car rental insurance protects against losses and is already useful for covering your rental cars. However, the best way to protect all of the cars comprehensively and cost-efficiently is through rental car fleet insurance.
Car rental fleet insurance covers rental companies with more than 10 cars used for rental services.
Commercial fleet insurance for car rental companies is largely specialized and only few offer this type of coverage. Fleet insurance for rental cars is a requirement in some states. The state requirements dictate the coverage you must include in your auto rental fleet insurance.
Get all the best quotes from leading providers in a click of a button!
Commercial property insurance primarily covers these exposures:
Commercial property insurance provides the money you can use to cover repair expenses. The amount you’ll receive will be equal to a percentage of or the total value of the damage incurred
Car rental business commercial property insurance can be added with business equipment and tools coverage. This will recoup losses if the equipment and tools essential for business operations becomes damaged or lost due to fire, theft, vandalism, and other covered risks.
The rental cars might be covered too as long as they become damaged or lost while in the premises of your business due to the aforementioned perils.
Your auto rental business will need workers’ compensation insurance to cover employees who sustain a work-related injury or disease. Having workers’ compensation insurance is crucial because it will help you cover the following without using personal funds or business funds:
Commercial rental car insurance is generally available for businesses that rent pickups, sedans, and other related medium-to-light vehicles. For those who rent vans, it’s better to get covered through tailored van rental insurance. Companies that sell this include the following policies:
Truck rental businesses can’t enjoy comprehensive coverage with car rental insurance. This is because trucks are more costly to maintain. Furthermore, unlike cars, trucks are rented to be used for transporting various goods between locations.
Carriers offer tailored commercial truck rental insurance. This consists of the following policies.
Contingent auto liability is the policy in truck rental insurance, which is not included in car rental insurance. So what does it do? Contingent auto liability insurance will help shoulder costs if your client causes an accident while using your truck, and you’re pulled into their mess.
On average, car rental insurance cost is $50 a month or $600 a year for a $1 million general liability coverage. The price you pay for your commercial car rental insurance cost varies based on various factors. Typically, these factors rely heavily on the makeup of your fleet like:
The car rental business insurance cost also depends on the extent of your coverage, the limits, the policies you have, and the carrier.
Below is a generalized breakdown of commercial car rental insurance cost estimates:
| Cost per Month | Cost per Year | |
| Commercial auto | $142 | $1,704 |
| General liability | $50 | $600 |
| Commercial property | $63 | $755 |
| Workers’ compensation | $47 | $560 |
| Business owner’s policy (BOP) | $99 | $1,191 |
For commercial trucks, insurance is $87 per month or $1,044 a year for a $1 million general liability insurance. Like other rental businesses, the premiums depend on location, the number of units, revenue, and claim history.
Van rental businesses pay $75 a month or $900 a year for a $1 million general liability insurance. Like other rental businesses, the premiums depend on location, the number of units, revenue, and claim history.
CoverWallet customizes the insurance policies of its partners to provide its own commercial vehicle rental insurance.
Policies included are general liability, workers’ compensation, and commercial property, which you can bundle through a BOP to enjoy cheaper rates.
Average cost: $49 per month
Get all the best quotes from leading providers in a click of a button!
Progressive stands out with its business car rental insurance policies. The cover includes liability, physical damage, hired auto, and medical payments.
The company covers everything, including commercial trucks and business cars, and extends to trailers, buses, and tractors.
Average cost: $82 per month
State Farm has an exceptional commercial liability umbrella or excess policy with numerous benefits, including the ability to further name other perils to fit your business needs. The company also offers commercial auto insurance and business owners’ policy.
Average cost: $75 per month
The Hartford is an excellent choice because it offers a comprehensive Business Owner’s Policy. The policy covers commercial auto insurance, professional liability insurance, and workers’ compensation insurance.
Average cost: $67 per month
10 / 10
For me this company has proven to be the best to do business with and worth my hard earned money. Contractors this is your company look no further.
7.7 / 10
Decent experience with Hiscox business insurance
10 / 10
Good company. Good and knowledgable customer service. If they don't know something they will pass you on to a more experienced rep that is more knowledgable. So far so good.
10 / 10
Best insurance ever
10 / 10
Coolest concept, I wish this was applied to other insurance products too.
9.4 / 10
Fastest ever online insurance quote and purchase! Also, great rates and professional customer reps that helps with whatever you need, if you need. Nice company!
2.8 / 10
Embroker sells a product that it doesn't honor. We purchased a combination D&O and EPLI policy. However, when it came to renewal, it told us that we only had D&O coverage even through our ACCORD certificate clearly mentions we have both. Basically they refused to honor the EPLI coverage and will leave you hanging with the bag. At time of renewal, they more than doubled our quote to get similar coverage. Basically BAIT & SWITCH. Unacceptable tactics. Easy to buy and pay but you may not be... Read More
2.8 / 10
Great platform. Terrible policy. There is no teeth behind it. No coverage. It's a fake policy that they sell. Sold us an EPLI policy that later we came to find out had no EPLI coverage. Amazing that they can get away with outright fraud. Check the positive reviews. They are all 'Anonymous' posted by Emroker staff. Stay away and find a real policy that will actually provide you coverage. We've been bitten by them and hope to find restitution via a lawsuit.
Paul Burns Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
It has been 70 days since I made a claim on the roof of my building. No one from the company will return calls. We are in hurricane season and located in Louisiana. My building is tarped to secure it.
Felicia Broadus Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
They are the worst, my truck was hit in January 23 and the claim adjuster has not been out to this very day! They have every excuse in the book as to why. They have not been to the collision shop. PLEASE AVOID THESE SCAM ARTIST!
Felicia Broadus Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
Avoid these SCAM ARTISTS! They don’t pay claims!!! Save yourself the trouble and money!
Kasey Arey Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
This company gives you a price that was in place for a year and when you have to use it there is fine print were they can go back and charge you more. Would not recommend them to any one. Crooks
John Murphy Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
Worst insurance comapny I have ever dealt with. A commercial vehicle represented by GUARD t boned my wife and daughters family vehicle in the middle of the day. Driver was cited and insurance claim insued. Fast forward 4 months and refusal of full amount of claim is still happening. Driver was found guilty, repairs started on my vehicle and when it comes to the final bill and diminished value we cannot get any help. I am out a family car, have an injured and traumatized wife and children,... Read More
Harshadray Patel Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
Extremely bad service, when you call , will make you wait on the phone for ever (over an Hour) and still no one to answer , so you end up hanging up. To cancel the policy, bounce you from one department to the other. They are supposed to refund from the date other insurance started and after sending the proof of other insurance policy, still they did not refund based on that actual date instead they use the date i managed to get hold of them. They charged me $7000.00 for a year's insurance on... Read More
Aaron Wensel Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
Guard Insurance is terrible. They were so bad I cancelled them because them couldn't figure out why I would never get a paper copy of the bill . Verified my address with them and still intermittent billing. I cancelled them in March through my local broker. Today 6/27 I get a letter in the mail from a collections company saying I owe 87.97. This was the first myself or my broker heard of owing this money. Here is some advice for this failure of a company send me a god damn bill and I will pay.... Read More
Michael Swink Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
My employer had to have workers compensation by law. He obtained a policy through this Berkshire Hathaway GUARD and they failed me. I fell from a ladder and fractured my spine in 7 different places, my clavicle in 4 places, and the base of my skull. Going to my Dr visits I was prescribed medication for pain and the insurance company placed a pre-authorization hold on me picking up the medication from Walgreens. The hold lasted 5 days! My weekly benefits have never been on time, right now... Read More
10 / 10
Liberty Mutual is one of the more simple companies to deal with. I had to file a claim for my business owner policy after I caught one of my employees stealing a large amount of products from my business. Liberty mutual paid the claim fast and with no efforts. I wish the legal process was as easy…
10 / 10
For me this company has proven to be the best to do business with and worth my hard earned money. Contractors this is your company look no further.
7.7 / 10
Decent experience with Hiscox business insurance
9.4 / 10
Very pleased with Hiscox - their small business insurance rates are very good and they specialize in small business which gives me a peace of mind as a small business owner. So far so good!
10 / 10
Their customer service is absolutely fantastic. Very patient, knowledgable and provided excellent explanation of the purchased policy. I would highly recommend this insurance company to anyone that's looking to protect their business from unexpected expense. Thank you Hiscox for doing a great job for my business!
0.6 / 10
STAY AWAY! I wouldn't recommend hiscox small business liability insurance to anyone. Better not waste both your money and your time. Hiscox customer service is extremely unpleasant, not organized and not professional. It is the worst company we have dealt with in almost 25 years in business!
10 / 10
Good company. Good and knowledgable customer service. If they don't know something they will pass you on to a more experienced rep that is more knowledgable. So far so good.
10 / 10
Extremely fast and simple. Wasted a lot of time and money until I found these guys! I feel like my business is in good hands now.
10 / 10
Hiscox's the best! My business is insured with them for over 12 years and am not planning to switch!
10 / 10
Excellent experience with Hiscox BOP for my coffee shop. They provided all it needed.
10 / 10
My HI barbershop is well covered with their great BOP product for 5 years already! not planning to switch!
10 / 10
Best insurance ever
10 / 10
Coolest concept, I wish this was applied to other insurance products too.
10 / 10
Great experience
6 / 10
Didn't relate to the concept much, but it makes sense if you need insurance to go
0 / 10
It doesn't really feel sustainable to me and doesn't offer business interruption, product liability and commercial property insurance. They have no local agents and despite their technology first approach you cannot file claims online. Additionally, product manufacturers are not covered by Thimble and they don't provide enterprise solutions.
10 / 10
As a contractor that works 3 times a week for a few hours, Thimble gets really handy for me and saves me money. I have no use for these massive business insurance coverages offered by traditional insurance companies.
10 / 10
Excellent concept which is useful to many small businesses!
10 / 10
Been waiting for this type of solution for a long time!
10 / 10
Love their business insurance solutions for freelancers! Great app!
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Disclosure: Insuranks.com is an independent educational comparison service and an advertising-supported publisher. Some of the companies/offers that appear on the website are from our partners which we may receive compensation from. This may influence which companies/offers we write about and where and how it appears on the site. However, this does not impact our assessments. We solely highlight companies, products, and offers that can help you make smarter insurance decisions.
