Paul Sanchez
Self-drive hire insurance is a type of insurance for vehicle hire companies. It covers vehicles that are currently on hire and those that are waiting to be hired. This type of insurance is a legal requirement and is necessary for businesses that want to rent out their vehicles. Self-drive hire insurance can cover almost any type of motorised vehicle, from cars to vans and motorhomes. It is a specialist policy that covers vehicles while they are out on hire and when they are not in use. The cost of self-drive hire insurance varies depending on the provider and the specific requirements of the business, such as the type of vehicle, its value, and the location of the business.
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What You'll Learn
- Self-drive hire insurance is a legal requirement for vehicle hire companies
- It covers vehicles on- and off-hire, including theft, vandalism and accidents
- It is a specialist policy, so not all insurance brokers offer it
- The cost varies depending on the provider and your requirements
- You can buy additional cover for gaps in the insurance agreement
Self-drive hire insurance is a legal requirement for vehicle hire companies
If you own a vehicle hire business, you must have self-drive hire insurance by law. This type of insurance covers a wide range of motorised vehicles, including cars, vans, motorhomes, caravans, campervans, horseboxes, and splitter vans. It is important to note that standard motor insurance policies may not be sufficient for vehicle hire companies, as they typically only cover a named driver in a named vehicle.
Self-drive hire insurance can provide protection for your business in several ways. Firstly, it can cover the cost of any damage to or loss of your vehicles due to accidents, fire, theft, or vandalism. Additionally, it can provide liability coverage for any legal claims made by vehicle hirers or third parties. This type of insurance can also include breakdown cover and insurance for vehicles taken abroad.
When obtaining self-drive hire insurance, it is essential to consider your specific needs and requirements. Various cover periods, indemnity values, and age restrictions are available, and you can choose from a range of insurance covers to suit your business. It is also important to disclose all relevant information to your insurer and carefully review the terms and conditions of your policy to ensure you have the necessary coverage.
By having self-drive hire insurance, vehicle hire companies can protect their financial investment and comply with legal requirements. This type of insurance provides essential coverage for businesses renting out vehicles to the public, ensuring they are protected in case of any incidents or claims.
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It covers vehicles on- and off-hire, including theft, vandalism and accidents
Self-drive hire insurance is a specialist insurance policy for businesses that hire out vehicles to members of the public. It is a legal requirement and covers vehicles both on- and off-hire. This means that it covers vehicles when they are being driven by customers, as well as when they are not being rented out, such as when they are being driven by an employee or parked on the business's premises.
Self-drive hire insurance policies can include cover for theft, vandalism, and accidents. Theft is typically covered by annual self-drive hire policies, and the hirer would usually be expected to pay the claim excess. Some policies also include a co-insurance clause for theft by the hirer, meaning that the vehicle owner would be responsible for a proportion of any loss if the hirer steals the vehicle.
Vandalism, which refers to someone intentionally damaging or defacing a vehicle, is often covered by comprehensive insurance policies. Comprehensive coverage can help protect against damage beyond your control, including vandalism, fire, explosions, falling objects, weather-related damage, damage caused by animals, and theft. It is important to note that filing a vandalism claim could result in a rate increase, and insurance may not cover further damage if the vehicle is not protected from additional damage, such as rain entering through broken windows.
Accidents caused by another driver will typically be covered by their insurer, as long as they were insured. However, fault can sometimes be shared between multiple parties, including the hirer, the other driver, and/or the vehicle owner. In the case of an accident, it is essential to follow the necessary steps, such as checking everyone's safety, calling the emergency services if needed, and contacting the rental firm for guidance on the next steps.
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It is a specialist policy, so not all insurance brokers offer it
Self-drive hire insurance is a specialist policy designed for businesses that hire out vehicles to members of the public. It is a legal requirement and is necessary to protect your financial investment.
This type of insurance covers vehicles while they are out on hire and when they are not being used. It can be a complex area to navigate due to the variations in vehicle-hire businesses. For example, a business renting out campervans will typically offer campervan hire insurance as part of the package, whereas a company hiring out a horsebox will need different coverage.
Because of the specialised nature of self-drive hire insurance and the complexities involved, not all insurance brokers offer this type of policy. Among those that do, there may not always be an experienced team of in-house experts to arrange the cover. It is important to find an insurer with the necessary expertise to provide the right cover at the right price.
When seeking self-drive hire insurance, it is essential to disclose all relevant information to the insurer. This includes details about the type of vehicle, its value, the area of operation, and the claims history of the business. Additionally, it is worth considering extra coverage, such as breakdown cover, insurance against theft, and legal and liability insurance to protect against potential legal claims.
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The cost varies depending on the provider and your requirements
The cost of self-drive hire insurance varies depending on the provider and your specific requirements. For example, if you are renting out vehicles to members of the entertainment industry, such as musicians and actors, some insurers may charge an additional premium or not include this cover at all.
Additionally, the cost may depend on whether the vehicle is being taken abroad, as you must ensure it is covered once it leaves the country. You may also need to factor in the cost of breakdown cover and insurance against theft. If you are running a self-drive hire business, legal and liability insurance is essential to protect yourself against any legal claims made by a vehicle hirer or a third party.
The type of vehicle you are insuring will also impact the cost, as each vehicle is rated individually, taking into account factors such as make, engine size, and value. The value of the rental vehicles, the area in which your business is based, and your company's claims history can also influence the premium.
Furthermore, the duration of the cover you require will affect the price, with Acorn Insurance offering flexible indemnity values ranging from £40K-£60K, depending on performance and requirements.
It is worth noting that some insurers may offer training for your rental desk staff to help identify potentially fraudulent hirers, which can result in lower premiums. Getting the right cover at the right price will depend on the type of business you are running and your level of experience in the industry.
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You can buy additional cover for gaps in the insurance agreement
Self-drive hire insurance is a specific type of insurance for vehicle hire companies. It is a legal requirement for businesses that want to rent out their vehicles to have an insurance policy that covers them when a vehicle is out on hire, as well as when it is not. This is something that a standard vehicle policy cannot offer.
While most hire vehicles come with insurance included in the rental cost, you can buy extra insurance to cover gaps in the hire company's insurance agreement or to cover extra costs. For example, you can buy excess protection insurance, which would cover the policy excess if the vehicle was damaged.
The cost of self-drive hire insurance varies from provider to provider and will consider your particular requirements. For instance, if you are taking the vehicle abroad, you must ensure it is covered once it leaves the country. You may also need breakdown cover and insurance against theft. If you are running a self-drive hire business, it is also worth having legal and liability insurance to cover you against the cost of any legal claims made by a vehicle hirer or a third party.
When taking out self-drive hire insurance, you will need to verify the hirer's identity using a form of photo ID, such as a passport and two recent utility bills sent to the same address as on their driving licence. You will also need to take a copy of their photocard driving licence and a rental agreement must be completed per hire per driver.
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Frequently asked questions
Self-drive hire insurance is a specific insurance for vehicle hire companies. It covers vehicles that are waiting to be hired out, currently on hire, and when they are not on hire. It is a legal requirement and standard vehicle insurance policies do not provide this cover.
Self-drive hire insurance can cover almost any type of motorised vehicle, including cars, vans, taxis, motorhomes, caravans, and campervans. It covers the vehicle for damage, fire, theft, and vandalism. It also covers damage to other people's vehicles or property, and any injuries they sustain.
If you own a vehicle hire business, you are legally required to have self-drive hire insurance. If you are an individual hiring out your vehicle to another person, even informally, you will also need this insurance for legal reasons and to protect your financial investment.
