Insuring a Car Rental Company

RCEx

New Member
2
Hello!
I am looking to start a car rental company in Washington State and have completed the research on everything but the insurance portion. I want to keep costs low but still be legally covered. The idea is to insure the cars while they are on the lot but once someone gets in the car, their personal insurance will now cover any damages done to the vehicle. They will be 100% liable for anything that happens to themselves or a third party in the event of an accident. Is this something that can be done? I know most private car companies require that you have full coverage insurance in order to rent a vehicle. Am I simply able to cover the cars with comprehensive insurance and skip the liability and collision? These cars will be owned and not financed by the way.

Thank you!
 
Sounds like an absolutely fantastic way to lose your business.

Trusting your renters to have coverage and proper coverage is a fool's mistake. If a renter kills or severely injuries someone, you better expect the attorney will go after the owner, the rental company, as well.

Do it right, it is a cost of doing business.
 
Sounds like an absolutely fantastic way to lose your business.

Trusting your renters to have coverage and proper coverage is a fool's mistake. If a renter kills or severely injuries someone, you better expect the attorney will go after the owner, the rental company, as well.

Do it right, it is a cost of doing business.

The company wouldn't just "believe" the customer that they have full coverage insurance. We would be requiring a copy of the renters insurance declaration page outlining all of their coverages and the amounts he/she is covered for. As for damages and injuries does off of our lot, the Graves Amendment will back our company in court. It protects car rental companies from the customer suing them for basically just owning the vehicle.
 
The company wouldn't just "believe" the customer that they have full coverage insurance. We would be requiring a copy of the renters insurance declaration page outlining all of their coverages and the amounts he/she is covered for. As for damages and injuries does off of our lot, the Graves Amendment will back our company in court. It protects car rental companies from the customer suing them for basically just owning the vehicle.

I admit, I was not aware of the Graves Amendment, however there do appear to be exceptions.

I wish you well with making renters bring a copy of the dec page. I bet most couldn't even find it if you gave them a month. Although that could work to your favor, sell a lot more LDW, LIS, etc.

Which obviously if you offer LDW and LIS, you're going to need a blanket policy for that.
 
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