Car Rental Insurance from £75/month

Car rental and self-drive hire firms need a hire-and-reward motor policy that covers every vehicle and every hirer, plus cover for vehicles off the road, public and employers' liability and loss of hire income. The gap we see most is hirer criteria: drivers outside the policy's age, licence or residency rules can leave a vehicle uninsured on the road.

Cover this trade usually needs

Cover	Why it matters	Typical limit
Self-drive hire motor fleet	Third-party liability is compulsory; damage and theft cover protects your vehicles while on hire.	Unlimited third-party injury; property damage typically £20m
Theft and conversion	Vehicles hired on stolen identities or not returned.	Fleet value, with per-vehicle limits
Loss of hire income	Earnings lost while a vehicle is off the road after a claim.	Daily rate for a set number of days
Premises and keys	The yard, office and key storage.	Buildings, contents and keys values
Public and employers' liability	Customers at your premises and staff who clean, move and deliver vehicles.	PL £2m–£5m; EL £10m

Key risks

• A hirer outside the insurer's age or licence criteria having a serious accident.
• Vehicles hired with false identity documents and never returned.
• Young or newly qualified drivers increasing claim frequency.
• Vehicles taken abroad without the right territorial cover.
• Keys stolen from the office leading to the theft of several vehicles.

Regulations and licences

• The Road Traffic Act 1988 requires third-party motor insurance for every vehicle on the road.
• DVLA licence checks — including the 'check a driving licence' service — are commonly required by insurers.
• Vans over 3.5 tonnes used commercially may bring operator licensing and tachograph rules into play.
• Consumer hire agreements must be clear on the hirer's liability for damage and the excess.

What we check before quoting

• Your hirer criteria: ages, years held, convictions and non-UK licences.
• How you check identity and licences at the counter or online.
• Fleet size, vehicle types and values, and how many are on hire at any time.
• Whether vehicles can be taken to Europe or Ireland.
• Key control, yard security and tracking fitted to vehicles.

Gaps we see most often

• Cover voided when a vehicle is hired to someone outside the stated criteria.
• Theft by deception excluded or limited to a low sum.
• No loss of hire cover, so off-road time is lost income.
• Damage waiver products sold to customers without checking how they fit with the policy.

Limits clients and contracts usually ask for

• Third-party property damage commonly £20m on motor fleets; injury unlimited.
• Public liability £2m–£5m for the premises.
• Employers' liability £10m; legal minimum £5m.

Key facts and sources

• HSE states that health and safety law applies to work on the road in the same way as on a fixed site, for company and grey fleet vehicles alike. HSE — Driving and riding safely for work

Common questions

Does a standard fleet policy cover hiring cars to the public?

No. Hiring vehicles to customers is self-drive hire, which needs a policy written for hire and reward. An ordinary business fleet policy excludes it.

Can we hire to drivers under 25?

Some insurers allow it with a higher excess or premium, others exclude it. Your policy's hirer criteria are what count, so the age limit you advertise must match the one on the policy.

What if a customer hires a car with fake documents?

That is theft by deception or conversion. Many motor policies exclude it or cap it, so it needs to be specifically included, usually with conditions on how you verify identity.

Can hirers take vehicles abroad?

Only if your policy extends to the countries they visit. Tell us whether you allow travel to Europe or Ireland and we arrange the territorial cover and documents needed.