I am thinking about starting a rental car company in my area a region that is fairly underserved. My fleet will be very small (i.e. less than 5 cars) and the people renting them will, for the most part, not be very wealthy. As a side note some of the cars we may rent out will be leased or financed from a regional dealer.
Thanks!
I have a lot of experience working with specialty insurance brokers who can build custom policies if necessary depending on what you are trying to build (eg, new carshare, rideshare services).
If it is a traditional car rental program, you'll need to find a broker who provides that type of insurance. You could try asking local rental companies who they work with and ask for a referral. Having a small fleet and working with low income populations (eg, possibly no credit cards) adds some risk and challenge for getting set up. You said "some" of your cars will be leased. What about the others? The first question you need to answer is 'who owns the cars'. If you are trying to do something peer-to-peer, it will add cost and complexity and there are fewer options for who you can work with. I'd suggest doing one or the other and avoid mixing the two.
Happy to discuss in more detail on a call.
It is difficult to obtain appropriate insurance coverage, when starting a rental car company. Here are some considerations to look for insurance:
1) Reach out to insurance brokers or agent
2)Consider reaching out to industry associations related to car rental companies, such as the American Car Rental Association (ACRA)
3)Explore regional insurance companies that cater to businesses in your specific area
4) Research and contact commercial auto insurance providers
Additionally, consider consulting with an insurance professional who specializes in commercial insurance
Insurance is definitely one of the trickiest parts of starting a rental car company, especially with a small fleet. I'd recommend reaching out to a few specialty commercial brokers who understand the rental space, and it's worth asking local rental owners who they use. Also, checking with the American Car Rental Association (ACRA) could point you toward insurers that handle small fleets.
On a related note, if you're ever researching how larger rental companies handle customer service or claims issues, I've seen some useful feedback at https://hertz.pissedconsumer.com/customer-service.html that might give you a sense of what to watch out for. Hope that helps, and good luck with the new venture!
