Trying to Find Motorcycle Rental Insurance?
James asked:
I’m opening a motorcycle rental business. I need someone to insure my motorcycles when they are rented out. I’m in MD. This is a relatively new industry. The only insurance companies I can find, require you to join an association and that association requires one to use their $15,000 liscensing software. I’m not even sure if this is legal, but in the mean time, I need insurance!
Reply:
If you’re talking about liability coverage, it should be easier, as long as you can make the motorcycle liability of the rider PRIMARY, AND you verify they have motorcycle liability coverage in the first place.
Of course, you’re probably dealing with a bunch of uninsured people, and combining the high likelihood of bodily injury of the riders with the high likelihood of accidents, it’s gonna cost big buck.
I’m guessing, five 400CC or greater, rented out 50% of the time, should run you easily $100,000 in liability insurance, if you only rent to people over 25.
But you’ll need an agent to put this out to bid for you – probably not a small, independent agent, but a larger house. And it WILL end up in the excess market.
Your association could be a REALLY cheap deal.
If you came to me looking for a quote, I’d charge you $1,000 brokers fee to quote it, refunded if you purchased the policy from me. Because it’s going to be HARD to place, and take a LOT of my time and negotiation skills, and I really don’t think it would come in at a price you would buy it from me in the end.
Source(s):
Tagged with: Motorcycle Rental Insurance
Filed under: Fast Motorcyle Insurance FAQ
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You need to tell the insurance company about it when you look for insurance. If the police were called – it will show up on your CLUE report.
In general, file with the rental company first. They will have to look at the language in their contract and if the driver took out the insurance. If they deny (for no coverage) then file with the renters personal insurance policy.
If your bike was parked when it was hit then there is no reason for your rates to increase. Insurance companies increase rates for auto accidents that you are at fault for only. They would not "punish you" for doing nothing wrong.
Secondly, accidents with rental cars can be tricky. I would definetly file a claim with both the rental agency as well as the person's own personal auto insurance. Each policy may have conditions or clauses as to whether or not the accident would be covered.
And if it gets to be too much of a mess, make the claim with your own company to get your bike repaired. Your company will then in turn collect the money back from the responsible party.
Hope this helps!
If he's gone back to the UK, you'll probably spend more in tracking him down and trying to take some action against him then writing off the expense. You can sue him in the venue that your business is in, and you can hire a process server (or whatever they are called in the UK) in the UK to serve him but then you might have to go through the expense of extradition or hiring UK law enforcement (and for such a low amount they might think it's a joke); and then collecting is always another big problem in any lawsuit you win. You might be better served by writing off the loss and making sure whatever means you use in the future as a deposit won't cost you later.