General insurance 4 Reasons to Have Insurance for Rental Cars

[Suba]

The car rental service business is a potential and promising business, because there are lots of people out there who need cars for their various needs. Besides being able to make a sizable profit, the car rental business also has other advantages such as being easy to manage, wide market reach, etc. But behind these advantages there are also many risks that must be considered, such as making car rental rules to avoid fraud. install GPS in the car in a hidden place. Besides that there is also a risk of damage due to an accident, because it is very necessary to use vehicle insurance, to avoid car damage.

There are 4 reasons why you need to buy insurance to run a car rental business, which are as follows:

1. Car renters are not controllable
Car rental owners will meet a variety of different tenant characters, some like to be fast and reckless, and some are calm. The owner of a car rental will not be able to predict what will happen on the highway, such as accidents and damaged cars. If this happens, the loss will be the responsibility of the insurance company.

2. Other risks
The risk of damage to a car can not only occur on the highway, but there are other factors that can pose a risk of loss such as natural disasters, floods, landslides, etc.

3. The risk of loss is greater than the premium to be paid
If there is an accident and the car is badly damaged, the amount of damage to the car will be greater than the amount of the premium that must be paid. The premium fee for car insurance is no more than 5% of the price of the car.

4. Car repair shops, insurance company partners
Widely available in many cities, auto repair shops are partners of insurance companies, making it easier for rental car owners to repair their car if damage occurs and repair costs will be borne by the insurance company.

 

[Yusra3]

Here's 4 Reasons to Have Insurance for Rental Cars:

1. If you're renting a car, and you're not sure where to go, having insurance can help eliminate some of the risk.

2. You can use the rental car as your primary mode of transportation, which means that if something happens to it, you don't have to worry about paying for another one and that's a big savings in terms of both time and money.

3. If something does happen to the rental car, you'll still be able to get around without having to worry about how much it will cost to replace it or taking out a loan from your bank account (although this may still be an option).

4. If something happens during your rental period, having insurance could help cover any damage or repairs that need to be made, so there's less risk involved in leaving your car at the rental location overnight or while traveling through an unfamiliar area during road trips with friends or family members who are also renting cars at other locations in case yours gets damaged or stolen while parked outside their home base).