Quote:
Originally posted by cstreit
Both good ideas. Chuck, I wonder if the cost of insurance wouldn't eat up most, if not all, of the renters fees.
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It would be expensive I'm sure. But someone is going to carry the risk of damage to the car; either an insurance company, you, or the renter. And if your contract says it is the renter, you are carrying it to the extent the renter might not make good (non performance of the contract). Don't discount that risk unless you've taken other steps to mitigate it, such as a HUGE deposit.
Yes you have legal remedies, but trying to enforce the contract may be costly, drawn out, and you may never get all the money you're owed. Your attorney will win, you'll lose.
In other words if you don't have a policy, you are self-insuring to some extent. If you had lot's of cars rented to spread the risk, okay. But if you have just one car, that is very risky for you.
You rent the car out for a fee. What is the fee for? Building the car, consumables, risk of damage, service and maintenance, depreciation, delivery to the track, etc. You can decide which of those things that you want to provide yourself, the rest can be outsourced (like risk).
The fee has to be high enough to cover all costs, and still make it worth your while. Seems like you'd have to charge easily $1k / day. Maybe $2k depending on what is included.