Self-drive hire insurance is a type of insurance that is for vehicle hire companies. Any business that wants to hire out their vehicles must have a policy that covers vehicles when they are out on hire and also cover the vehicles when they are not being hired. A standard vehicle insurance policy does not cover this. A rental company needs to have self-drive hire insurance.
Self-drive hire insurance is more complicated than it appears. To give you an understanding, we are going to outline the key points so you can select a policy that matches your requirements.
What is covered?
Insurance is needed for any vehicle that is hired out. There are particular policies for different types of vehicles. The vehicles that are covered include:
– Vans
– Cars
– Motorhomes
– Minibuses
– Camper vans
The policy includes motor insurance, a legal requirement for all vehicles. Having said that, a standard policy is not the right policy. This would only cover named drivers. If a vehicle is being hired out, even if it’s more informal, you need to have this cover for both your protection and legal requirements.
How much does it cost?
The price of insurance depends on your own requirements. An example of this is if the vehicle would be taken abroad. You would need to make sure it is still covered when it leaves the country. You would also need theft insurance and breakdown cover. If you operate a self-drive hire business, then you would also need liability and legal insurance to cover any legal claims made by a third party or the hirer.
To go through your options, you can get in touch by ringing us on 01204 392 525 or emailing us at Quote@arkwrightinsurance.co.uk and we can discuss your requirements for you.
Annual or pay as go?
You may have heard of annual cover or pay as you go. When looking at the price, you need to make a decision if you want to take out the annual cover or pay as you go, otherwise known as PAYG. PAYG would require a set-up fee and also would feature additional charges when a vehicle is hired out. You will also need cover for when the vehicle is not being hired out.
It is a legal requirement to have insurance for taxed vehicles, even if they are not being driven. Domestic, social and pleasure insurance is not suitable for for-hire vehicles. If you do take this kind of policy out, you may invalidate your insurance.
An annual policy only needs you to complete the required information once. If you are going into the hire business, this is the perfect option.
Annual policies can be adjusted to suit your needs. You can ensure you are fully covered, and also avoid paying for any extras you may not need.
Contact us and we can discuss all of your self-drive hire insurance needs and find the right insurance for you and your business.