Looking for an insurance carrier who can offer insurance for commercial auto insurance

[kris-dfw-p-c]

Hello All,
one of my customer who has 15 seater sprinter van and looking for commercial auto insurance. Initially I thought he is going to use for his business and provided a standard commercial auto from progressive. Later I came to know that, he wanted to use the vehicle for rental purpose and what kind of coverage he needs?
any idea ( it should be similar to turo which offer insurance for the vehicle). Also if the owner carries Collision/Comp from regular auto insurance, won't it cover irrespective of who is driving it ( as long as that renter carries liability insurance).

any thoughts?
regards
Kris

 

[marindependent]

What State?

Clarify the question - Who is "the owner carries Collision/Comp from regular auto insurance"?

Is this client a "Rental Car" Firm? Or is this just a first time renting out a 15 seat van?

 

[kris-dfw-p-c]

TX State and Client recently purchased 15 seater sprinter van and would like to rent that vehicle and looking for a insurance coverage

 

[Allen Trent]

Also if the owner carries Collision/Comp from regular auto insurance, won't it cover irrespective of who is driving it ( as long as that renter carries liability insurance).

Nope. If owner covers comp & collision on a personal auto policy, any & all claims can be denied, even those not involving rental of the vehicle. Insurer merely would state they would have never insured it had they known the client lied on application about business use, etc.

Commercial policies can also deny claims if the type of business or the business name is different from what they stated in application. IE: said you are a drywall contractor but actually hauling hazardous chemical in the sprinter van

 

[kris-dfw-p-c]

I got your point Allen but what kind of insurance he can get to cover his vehicle renting business? I came to know that they can rent it through Turo and Turo will cover the vehicle whenever it goes for renting? Is there any carrier who can provide similar insurance coverage what turo is providing to the vehicle owner?

 

[Allen Trent]

I got your point Allen but what kind of insurance he can get to cover his vehicle renting business? I came to know that they can rent it through Turo and Turo will cover the vehicle whenever it goes for renting? Is there any carrier who can provide similar insurance coverage what turo is providing to the vehicle owner?

I don't think you are going to find a carrier willing to insure 1 rental van, especially when it is 15 passenger. Those vans are more prone to accidents, rollovers & will be used by larger groups more likely to be involved in riskier behavior (bachelor parties, bar crawls, long distance trips). Churches even struggle in today's market getting their vans covered with volunteers driving groups.

Send it to your surplus lines brokerage & see what carrier, if any, will want to quote it.

Also suggest to the client that they contact others on Turo that rent out their sprinter vans & see where they insure them. My guess is most of those on Turo are part of a larger fleet and/or part of a business that offers driver or limousine type transportation

 

[kris-dfw-p-c]

thank you Allen for the response. I have already checked with one of company who has 15 seat van and they currently carry the commercial auto insurance for their van but whenever it gets rented on turo, turo will cover that.

 

[Allen Trent]

thank you Allen for the response. I have already checked with one of company who has 15 seat van and they currently carry the commercial auto insurance for their van but whenever it gets rented on turo, turo will cover that.

just make sure that persons commercial auto insurance policy knows it is being rented, otherwise the carrier could deny any & all physical damage or even large liability claims even when not being rented out. They could deny the claim saying they would have never insured it at all had they known the business was renting it out. Commercial insurance from my understanding is a contract between a specific named insured/entity & the carrier for very narrow business operations. Rented it out likely wont be deemed part of those business operations. Have seen claims denied over the years.

 

[kris-dfw-p-c]

I will check that Allen. do you suggest any E&S carrier/broker who can handle the hard to place markets TX?

 

[marindependent]

just make sure that persons commercial auto insurance policy knows it is being rented, otherwise the carrier could deny any & all physical damage or even large liability claims even when not being rented out.

What he said. And, I might add, I would make sure that they know it...in writing. Preferrably on the signed applications that they accept.