Insurance is a vital requirement for any business to provide financial protection that gives you peace of mind during daily operations. This is especially true for businesses that work closely with the public, such as the vehicle hire services within the self-drive and credit-hire sectors.

Operating a customer-facing business where your assets are loaned out exposes your company to significant risk, which is why there are specific insurance policies required legally to operate this type of business, but you can always be better protected. Are you wondering which optional insurance packages will benefit your business and why? Read on to explore the benefits of our tailored packages for companies in this sector.

What is Self-Drive Insurance?

Self-drive insurance is a perfect choice for businesses that offer their vehicle assets out on hire, and it can be expanded or reduced to suit any size of business, from small rentals to larger operations. The featured policies will generally include coverage for the vehicle and the occupants who hired it during the rental contract. This is an example of insurance required by law, as other personal insurance options will not cover the use of hired vehicles and must be covered by the hire company instead.

What Does Self-Drive Cover?

The specifics may vary because we create custom packages for our clients, but our policies extend beyond the basics, catering to a wide demographic, covering hirers aged 21 to 70 years. Additionally, our policies extend to cover vehicles even when they aren't being rented out, offering protection in scenarios such as vandalism or theft from your business premises. Key coverages in self-drive insurance include, but are not limited to, the following:

• Loss or Damage to Your Vehicle: Protection against damage to owned or leased vehicles used for business purposes.
• Third-Party Liability: Covering liability for third-party claims arising from accidents involving the business's vehicles.
• Policy Cover for Hirers: Covering individuals within a specified age range who are authorised to drive the business's vehicles.
• Windscreen Cover: Additional protection for repair or replacement of damaged windscreens.
• Legal Protection: Covering legal expenses related to motor disputes, contracts, and other legal issues.

What is Credit-Hire Insurance?

Credit-hire insurance has many similarities to the previously discussed insurance due to the overlapping nature of the business, but there are notable differences that are also evident in the required insurance coverages.

The area where the differences occur is the reasons for the hired-out vehicle, which, in this case, is its use on credit terms. For example, when someone has been involved in a non-fault accident that has rendered their current vehicle not roadworthy, then they would turn to a credit-hire company through the at-fault party's insurance and acquire a new vehicle as a temporary replacement.

This insurance will act as an umbrella-style package that will bundle together several coverages into an easy-to-manage and efficient alternative, similar to how brick-and-mortar businesses will often choose commercial combined insurance to take advantage of the streamlined efficiency it provides for many disparate areas of their business.

What Does Credit-Hire Insurance Cover?

The specifics of the coverages within this umbrella package will vary depending on your business needs, but they all generally have elements similar to self-drive and other motor trader insurance options. The main concern here is to protect the business against potential liabilities arising from the rental process itself. These are some (but not all) of the key coverages in credit hire insurance include:

• Vehicle Damage Coverage: Protection against damage to vehicles while they are being rented out.
• Accidental Damage Excess: Covering the excess amount payable for accidental damage during the rental period.
• Third-Party Liability: Covering liability for third-party claims arising from accidents involving rented vehicles.
• Legal Protection: Safeguarding against legal disputes related to rental agreements and liabilities.
• Non-Rental Coverage: Some credit hire insurance policies extend coverage to vehicles even when they are not being rented out, protecting against risks such as vandalism or theft from business premises and ensuring comprehensive protection for business assets.

By providing these key coverages and more, credit hire insurance policies offer robust protection for businesses engaged in vehicle hire operations, mitigating risks and ensuring continuity of operations even in unforeseen circumstances.

Can These Be Changed Later?

With growing businesses changing all the time, we know that you need to adapt based on the level of work you have received, and sometimes, these changes can occur quicker than expected. For example, if you are starting and have four vehicles to cover, then business increases, and you suddenly require five more vehicles. Most policies will allow amendments, and by using an experienced broker like us, you can be confident that your policy will always work best for you.

Custom Self-Drive and Credit Hire Insurance Packages at IC Insurance Solutions

Our insurance brokers in Bolton have many years of experience sourcing the most effective insurance policies for a variety of businesses, including those in the self-drive and credit-hire sectors.

The expertise our teams have collected makes them very capable of understanding your business needs and creating tailored solutions that will provide better financial protections and lower premiums than what you currently have. Contact us to start the process and find better self-drive or credit-hire insurance today.