The Top 7 Car Rental Business Insurance Companies

Starting a car rental business requires finding the right insurance coverage to protect your fleet of vehicles As a business owner, I know that choosing car rental insurance can be overwhelming with so many options to consider. Through my own research, I’ve identified the top 7 car rental business insurance companies based on their financial strength, coverage options and customer service reputation

Overview of Car Rental Insurance Needs

Car rental businesses need commercial auto insurance policies that are specifically designed to cover rental fleets rather than just personal vehicles. This type of insurance is referred to as commercial fleet coverage or rental vehicle coverage. Here are some key coverages that car rental insurance policies typically include:

• Liability coverage in case a third party is injured or their property is damaged by one of your rental vehicles. This protects your business from expensive lawsuits.

• Collision and comprehensive coverage to pay for damage to your rental vehicles from accidents, theft, vandalism etc. This ensures your fleet is protected.

• Medpay or personal injury protection to cover injuries to drivers and passengers in your rental vehicles, regardless of who was at fault in an accident.

• Uninsured/underinsured motorist coverage in case an at-fault driver who hits one of your vehicles doesn’t have adequate insurance.

• Roadside assistance services for your renters if they break down or have an emergency with one of your vehicles.

• Rental reimbursement coverage to pay for a replacement rental car if one of your vehicles is out of commission after a claim

• Gap insurance to cover the difference if one of your vehicles is totaled and you still owe money on it.

The Top 7 Car Rental Insurance Companies

Based on my research, here are the top 7 providers of car rental business insurance that offer the right mix of coverage, financial strength, and service:

1. The Hartford

The Hartford has over 200 years of experience providing insurance for all types of businesses. They offer flexible commercial auto policies designed specifically for rental car fleets. Coverage highlights include:

• Primary liability limits up to $1 million

• Worldwide rental vehicle physical damage coverage

• No deductible for windshield repairs

• Lock replacement for lost or stolen keys

• Roadside assistance with no per-use fee

The Hartford has an A+ rating from A.M. Best for financial strength. The company also performs very well in J.D. Power customer satisfaction surveys.

2. Liberty Mutual

Liberty Mutual is one of the largest property and casualty insurers in the U.S. Their commercial auto coverage options for rental car businesses include:

• Liability limits up to $5 million

• Guaranteed auto protection to cover rental vehicles at their actual cash value

• Customized deductibles by vehicle class

• Worldwide coverage for rental vehicles

• Repair valet service for covered claims

Liberty Mutual has an A rating from A.M. Best. The insurer performs consistently well in J.D. Power satisfaction reports.

3. State Farm

State Farm is the #1 insurer of cars in the U.S. Their rental vehicle policy offers:

• Liability limits up to $5 million

• New vehicle replacement coverage

• Lock in value coverage to protect vehicle values from depreciating

• Roadside assistance, towing, and labor

• Rental car reimbursement

State Farm has an A++ financial strength rating from A.M. Best. The company has improved in recent J.D. Power customer satisfaction reports.

4. Allstate

Allstate is one of the largest publicly traded insurance carriers in America. For car rental businesses, their coverage features include:

• Primary liability up to $5 million

• Agreed value coverage for rental vehicles

• Lock replacement due to theft or loss

• Car seat and stroller replacement

• First day rental vehicle coverage

Allstate has an A+ rating from A.M. Best. The insurer performs well in industry customer satisfaction studies.

5. Progressive

Progressive is known for innovative offerings like usage-based insurance and immediate digital claims servicing. Their rental vehicle program includes:

• Liability limits up to $5 million

• Agreed value coverage based on vehicle class

• Custom parts and equipment coverage

• Scheduled maintenance coverage

• First day rental vehicle coverage

Progressive has an A+ rating from A.M. Best. The company scores above average for customer satisfaction in industry studies.

6. USAA

USAA offers insurance exclusively for military members and their families. Their rental vehicle coverage features:

• Liability limits up to $5 million

• New vehicle replacement for the first year

• Worldwide rental vehicle physical damage

• Roadside assistance up to $100 per occurrence

USAA has the highest possible A++ rating from A.M. Best. The company receives very positive customer feedback.

7. Geico

Geico is best known for low-cost car insurance. Their rental vehicle program includes:

• Primary liability up to $1 million

• State mandated rental reimbursement

• Vehicle locator service for stolen vehicles

• Lock replacement due to theft or loss

Geico has an A++ financial strength rating from A.M. Best. Customers give positive feedback on claims handling by Geico.

How to Choose the Right Car Rental Insurance

When picking an insurance company for your rental car business, I recommend getting quotes from multiple providers. Make sure to compare policy limits, deductibles, exclusions, and rates. Also verify that each insurer is financially strong by checking their A.M. Best rating.

Some additional tips for choosing the right car rental insurance policy:

• Ask about any discounts available for safety features, driver training, loyalty, etc.

• Inquire about any value-added services like roadside assistance.

• Make sure worldwide rental vehicle physical damage is included.

• Choose higher liability limits if your vehicles have higher values.

• Ask aboutGAP coverage or new vehicle replacement options.

• Seek an insurer that specializes in commercial vehicles rather than standard personal auto.