Your fleet, out on the road.
Rental fleet liability and physical damage, garage and lot coverage, garagekeepers for customer cars, crime and workers' comp for independent car rental agencies.
By Sam Alishahi · CA Insurance License #4348151 · Reviewed October 2026 · How this page is researched
Renters, cars and contracts
An independent rental agency hands its cars to strangers every day. Renters crash, cars get stolen or never come back, and damage turns up between rentals. The fleet needs physical damage coverage, and the agency needs liability that fits rental use, which a regular commercial auto policy usually doesn't.
California's Civil Code sets rules for rental car companies, including how they quote charges and sell damage waivers. A federal law generally limits a rental owner's liability for a renter's crash when the owner wasn't negligent, but it doesn't stop lawsuits. This is a hard market, so I work admitted and surplus lines options side by side.
- Rental fleet liabilityLiability written for rented vehicles.
- Physical damageCollision, theft and vandalism to the fleet.
- Garage and lot liabilityCounter, lot and shuttle exposures.
- CrimeEmployee theft and fraudulent rentals.
What underwriters will ask
Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.
- Fleet: vehicle list with years, values and garaging.
- Rentals: rental terms, average length and renter screening.
- Damage waivers: whether you sell them and how.
- Locations: counters, lots and any airport delivery.
- Revenue and payroll: annual figures.
- History: current policies and loss runs.
Car rental business insurance, answered
Can I use a regular commercial auto policy for rentals?
Usually not. Many commercial auto policies exclude or don't contemplate renting vehicles to others, so rental use needs a policy written for it.
Does the Graves Amendment mean I can't be sued?
No. It generally limits a rental owner's liability for a renter's crash when the owner wasn't negligent. You can still be sued and need coverage to defend those claims.
Who pays when a renter damages a car?
Your physical damage coverage, the renter's own insurance or your damage waiver terms may apply, depending on the contract. I review the agreement with you.
Why is it hard to find coverage?
Few insurers write small rental fleets. I work admitted and surplus lines markets and need clean loss runs and renter screening details to get terms.
Do you offer car rental business insurance outside California?
Yes. Clients across the country send the same quote form. Sam Alishahi is licensed in 48 states and Washington, DC and places policies there directly. In Florida and Washington, where Sam's licenses are still being issued, a partner agency in your state helps in the meantime. The shopping across carriers works the same way. Rules, minimums and markets differ by state — see truck insurance by state or insurance requirements by state.
Insure your rental fleet
Send me your fleet list, rental terms and loss runs. I'll shop admitted and surplus lines markets that write rental agencies and explain each option.
Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued. Some policies may be placed with nonadmitted (surplus lines) insurers, which are not members of the California Insurance Guarantee Association (CIGA).
Tell me how to reach you. I’ll take it from there.
Takes about 30 seconds. Your application link comes by email right away, and you get an update at every step until your quotes are ready.
(877) 711-4545Answered 24/7 · CA License #4348151
Get a reminder before your renewal.
Tell me when your policy renews and I’ll email you about six weeks before, when it’s worth comparing. One email, no calls.