The car rental service business or commonly known as car rental is quite popular in the country and has considerable profit potential. How not, out there are a lot of people who need rental services like this all the time.
However, this car rental business cannot be separated from risks. As a car rental owner, you will also bear the risk of considerable loss in this business. It is important to use vehicle insurance services, so that these various risks can be transferred to the insurance company.
There are many reasons why you need to use insurance services when running a car rental business, some of which are as follows.
The Importance of Car Insurance in the Car Rental Business
1. Can't Control Tenants
When running a rental business, it is clear that you will be dealing with various kinds of tenant characters. It is this renter who will carry and use the car as long as it is rented out, without being able to be controlled at all.
Not always can tenants be good because sometimes many tenants are naughty as well. Naughty in the sense of likes to speed, does not pay attention to traffic signs, forgets to install turn signals, and so on.
You will not be able to predict what will happen on the road and what the condition of the car will be when it is returned later.
In order to anticipate losses that are not your fault, it is better to insure a rental car. Whatever loss occurs is not your responsibility, but the insurance company through the premiums that have been paid.
2. There's Always a Risk
Not only renters are at risk of causing problems with the car, but there are other factors that also make the car damaged. Damage may arise as a result of the carelessness of others outside the motorist or renter, including the risk of damage caused by natural disasters and others.
One of the risks that may occur is the theft of rental cars carried out by renters. This is very vulnerable to happening.
Considering that the price of a car unit is not cheap, you should consider insurance ownership. If one day the car is lost due to being stolen, you can get a sum insured from the insurance company to buy a new product.
Especially when running a rental business, cases of lost cars are quite frequent. It could be because of being rushed by the tenant, it could also be because of the begal act.
Apart from the tenant side, another thing out of control is natural disasters that can occur anytime and anywhere. This is the reason why it is important to have rental car insurance.
If at any time a disaster occurs, you don't need to worry about repair costs due to the engine being submerged in floodwaters. Just take it to the partner's workshop, then the business is immediately settled. The cost is borne by the insurance company. You just have to accept it clean and find a new prospective tenant so that the income remains on the way.
3. Premium Value Is Much Less than Risk of Loss
You must have known that the cost of repairing a car is quite expensive, especially for a car that has an accident. Buying car insurance will certainly be profitable because the premiums paid are much cheaper than the cost of repairs.
In general, the amount of premium for car insurance is not up to 5% of the price of the car itself. This is certainly a small value, when compared to the risk of loss caused by damage to the car.
4. Insurance Company Will Be Responsible
If one day the car is damaged which makes it unable to operate properly, you can go to an insurance partner repair shop to repair the car. Repair costs will be covered by insurance, so you don't have to spend any more personal money as long as the damage is beyond the policy exception.
Insurance partner workshops are widespread in almost all regions in Indonesia. So, it can be adjusted to the region of your existence at the time the damage occurred.
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