As you will see, we get a mention!
Key points to check
Reading that thread made it clear to us that some people are unsure about what to consider when looking for this kind of insurance. So, here are a few things we think should be checked:
- Will the policy cover damage to the motorhome arising from cooking and heating?
- Will the policy cover the risk of theft of a motorhome by the hirer?
- Will the policy cover motorhomes both on hire and when parked at your premises or elsewhere (“off hire”). Some insurances only cover the motorhomes when out on hire. When you take out such a policy, you may need to arrange separate cover when the vehicles are “off hire” and parked at your premises. Always check this aspect before accepting a quotation.
- Will the policy also provide “social domestic and pleasure use” for named employees/family members – typically the proprietor(s) or directors. Generally there should be no extra charge for this.
My business is seasonal, why do I have to pay when my motorhomes aren’t on hire?
The premiums quoted on an annual policy reflect the underwriters’ assessment of the risk over the whole year (including when the motorhomes are parked at your premises). This is not a “rip-off” – clearly most accidents will occur when a vehicle is on hire so any insurer that is being paid only to cover the “risky periods” would have to charge proportionately higher premiums.
Annual versus pay-as-you-go?
We much prefer annual policies because we want to build a long term relationship with our clients and - like our business insurance clients - we like to know that we have a consistent income stream. Short term policies generally mean higher administration costs for everyone.
Our annual policy works best for businesses that have a sound business plan and intend to maximise their hiring activity. The more you hire out your motorhomes, the better value the insurance will be. A daily-rated or “pay as you go” policy will generally work out to be much more expensive if your business is successful. Some “pay as you go” schemes also require that the operator uses their computer software systems, which puts off many people.
In order to help businesses smooth out the cost of their insurance, and budget properly, most brokers and insurers can offer financing arrangements to allow payment in monthly instalments.
Why are you buying insurance?
Increasingly, business insurance customers tend to focus on price. This is perhaps understandable: economic times are tough and firms need to watch their expenditure. The problem with always looking for the cheapest option can be that you simply ignore the question of value for money. If you only want the cheapest possible insurance, why bother with comprehensive cover at all?
A prime consideration should be the claims service your insurer will be providing. The success of your motorhome hire business will depend on your very expensive vehicles being available for hire.
You need to be sure that the insurer you choose understands the specialist nature of repairs on these motorhomes. Will your insurer authorise claims quickly and make a fair offer in the event of a total loss? The availability of a decent legal service to recover uninsured losses is also essential.
Ask for references
A badly handled claim or a gap in your cover could ruin your business. Don’t entrust someone with your insurance business without first checking out their credentials. Why not ask your peers for their advice or request references from similar firms?
Free advice on a range of business insurance needs
It’s useful if the insurance broker you choose can support your business in areas other than just your motor insurance. You may need help and advice on other insurances and risk management services. For example, you will probably need public liability insurance to cover your business premises if people come there to pick up or drop off motorhomes.
For more information
You can get more information about motorhome self-drive hire insurance facility on our website:
The “frequently asked questions” section can be found here:
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