For companies wanting extra transportation capacity, renting cars is somewhat frequent during busy holiday seasons. The details of your policy and the reason the rental car is being utilized will determine whether your business auto insurance covers these rentals.
Policies For Business Use of Rental Vehicles
Usually referred to as "hired auto coverage," most corporate auto insurance policies feature a clause covering rental cars. This is true whether companies rent cars for official business needs, including deliveries, customer visits, or product transportation. Should your policy cover hired vehicles, it should guard your company from liabilities, including property damage or accidents resulting from the rental car being used.
Still, the degree of coverage will differ. While physical damage to the rental vehicle itself could need further coverage, some policies merely cover liability, so damage to other people or property can be ensured. Always find out if your policy covers rentals comprehensively and in collisions.
Limits and Exclusions
Corporate auto insurance might not cover rental cars used for personal errands or uses outside of company business. Employees who rent cars for personal purposes—even for company travel—may have claims dismissed. Likewise, premium or specialty vehicles hired for special events could not be covered without a specific endorsement.
Insurers may also restrict coverage for automobiles rented in particular geographic areas or from unapproved vendors. International rentals might, for instance, call for endorsements or extra insurance.
Supplemental Rentals Insurance
Many times, rental firms include extra insurance choices such as liability protection or damage waivers. Although your company's auto insurance could already offer enough coverage, getting additional protection will bring even more security—especially if your current policy has gaps. Review your policy terms to determine whether this extra outlay is required.
Getting Coverage Over the Holidays
Review your business auto insurance coverage well in advance to be ready for maximum holiday demand. Check any limitations or limits and be sure hired auto coverage is included. Talk to your insurer to clear any uncertainty, especially if your company expects to rent cars during the Christmas frenzy.
Knowing the extent of your coverage and thinking through additional choices when necessary will help you to make sure your rental cars are adequately covered, therefore protecting your company during the busiest period of the year.