There are a lot of people out there who bought a car in the last year and need to get out of the country for a one or two years. This wouldn't normally be a problem but when you bought your car on a lease then it becomes one. You still have to pay the monthly lease even though you stopped using your car for the time being. This is where the rent out companies come in handy. These will offer you a service where you basically rent the car for the amount of time you're gone.
While the car is rented your will continue to receive money from the company you rented it to, so basically, the car will pay for itself for the time you're away. Take into account though that there might be a few issues on the way. Firstly, the car must be in good condition in order to keep its passengers safe and it should also have an insurance for your own protection.
Let's check out the 6 most important things you need to know on renting out car insurance.
1. The first and most important of them all is that the insurance is not mandatory.
I know how it sounds but bare with me. Even though it is not mandatory, I highly recommend that you get one because the company that rents the car out for you won't insure it in case you just rent it. This is because the car will still be on your name so you'll have to maintain it and if something goes wrong and you don't have an insurance you will have to pay for it. On the other hand, if you manage to ensure it then there will be nothing to worry about.
2. In case you are leasing the car out to a company then it gets a little tricky.
Sure, you still own the car but you don't actually get to use it or even take car of it. In this instance the company will maintain, pay the insurance fees and any eventual breakdown. In this case you are insured that in case anything goes wrong with the car you will get your money back, depending on the contract you signed.
3. Do a full inspection of your car before renting it out and get the necessary paperwork.
You will have to do this in order to prove in what condition your car was before renting it out so if something happens everybody will know that the car was just fine before the incident. If you won't do it then there are chances that either you won't be able to get a suitable insurance or you won't be able to insure it at all.
4. Be ready to check the market. Some companies have their own insurance policies, some don't.
There are some that will cover pretty much any damage done to the car so you won't have to pay a thing but this is usually a bit more expensive, but it is highly recommended, especially for the more expensive cars. The companies that don't have their own insurance policy will require you to insure it to a third party. There are a ton of companies on the market that offer exactly that but be ready to check their contracts and the liability terms because you might not like some of them.
5. Specify the amount of time you want your car to be leased or rented out.
Why? Because you will be able to get cheaper insurance policies for smaller amounts of time. This means that if you rent out the car for around a year you will pay by up to around 40% less if you've had rented it for two years.
6. Learn to negotiate. If somebody gives you a quote on a specific insurance you don't have to accept it on the spot. Before accepting it take your time to study the market. This will allow you to get the best deal out there, both for the amount of money paid and the services provided.
In conclusion, if you are looking to rent out your car, take your time in order to check the market for the best insurance policy out there. You might think that it is a tedious job but it is well worth the time because it will save you a lot of headache if something goes wrong.
