How much does an average car insurance company pay for a rental car?

How much does a car rental company pay for insurance?

• Does any one work in/own a car rental. I'm curious how much insurance costs per vehicle per mo/yr? I'm asking about a private car rental, that pays for insurance. not a big chain, like Enterprise, Avis, hertz,etc. that are self insured.

• Answer:

  Dude, you can't buy it by the month. And it's going to depend HEAVILY on which state and city you rent in, but you can BET that with NO deductible, you're looking at $20,000 a year and up, no physical damage. With a $10,000 deductible, which is what a SMALL rental car company would carry, you're looking at $5,000 and up, no physical damage. Bottom line - rentals for Enterprise, Avis, and Hertz, average one accident every 20 rental days. The average "life" of a rental car, is 25 months - before it's totalled, and that's on top of all the smaller, non-total collision losses. If you're not willing to absorb ANY of those losses, you're looking at $50,000 a year in insurance, PER CAR. Minimum. Rental car companies charge $30 to $75 per day, for rental fees, per vehicle. That's the break even point - they make their ACTUAL profits, selling collision damage waivers. If you're asking this question repeatedly because you think you can rent your car to someone for a lot less and make a profit off of it, you'd best have the bank account to back up your business. And remember, Hertz is on the verge of filing bankruptcy.