Looking to rent a car? Then make sure to educate yourself regarding the car rental agreement in order to complete the renting process without any hassle. A car rental agreement is a legal binding document between a car rental company and a renter, all the terms and conditions are outlined in a agreement related to car rent. This agreement is prepared in order to legalize the transaction and to secure the rights of both the parties.
As a renter you must understand the key components of a car agreement in order to have a smooth and hassle free rental experience. A car rental agreement is signed by both the parties to ensure car will be returned in a condition on which it was taken. In this post, we have covered the important information related to car rental agreement and provided a few FREE rental agreement templates & forms.
Understanding Car Rental Agreement
A car rental agreement is a legal document that is signed by both the parties i.e. car company and a renter. This document outlines the rights and responsibilities of both the rental company and the customer. All important information related to rental such as duration, cost, driver requirements, insurance, vehicle condition, terms for vehicle return, etc are mentioned in this agreement.
The purpose of creating this agreement is to protect the rights of both the parties and to ensure that the car is used responsibly and returned in a proper condition.
Different Elements of a Car Rental Agreement
Following are some of the important elements of a car rental agreement:
- Details of Both Parties: The name and contact details of both the parties i.e. customer and car rental company are mentioned in this agreement.
- Condition of the Vehicle: The agreement includes details about the car such as make, model, year, license plate number, and Vehicle Identification Number (VIN). The condition of the vehicle is also describer. As a customer make sure to take a video of the car before renting it.
- Duration: The dates of the start and end date of the rental are mentioned.
- Rental Fees and Payment Terms: This agreement outlines the rental fees, payment method, deposit, additional fees for late returns, fuel charges, or mileage limits.
- Insurance and Liability: The agreement should specify the details related to Insurance and Liability. As a renter, make sure to understand the liability in case of an accident.
- Use Restrictions: Write down any restrictions related to the usage such as limits on crossing state or country borders, off-road usage, or prohibited activities.
- Fuel Policy: Mention whether the car should be returned with a full tank of gas or if refueling charges apply.
- Return Conditions: The agreement outlines the condition in which the car must be returned, acceptable wear and tear, and penalties for damages beyond normal use.
Download Car Rental Agreement Template
You won’t be able to rent a car due to these conditions
A car rental company won’t allow you to rent a car due to the following conditions:
Invalid license: You wont be able to rent a car if your license is not renewed or suspended. If you are looking to rent a car then make sure to have a valid driving license.
Bad driving: If you have a record of bad or reckless driving then it’s highly possible then you will be disqualified from renting a car. Therefore, always drive carefully and with responsibility.
Several Accidents: If there are several accident reports in your record then you won’t be allowed to rent a car.
Alcohol & Drug Abuse: If you are under the influence of alcohol or drug at the time of car rental then car company will reject your rental application on the spot and they have rights to do so. Never drive in the influence of alcohol or drugs, always drive sober.
So these are some of the conditions under which you won’t be able to rent a car.
Check the following before renting a car
Hiring a car is a responsible task. As a customer, you should be very attentive while hiring, make sure to check out the car’s condition properly. Here is a small checklist for you to follow:
- Make sure to check for a spare wheel. A spare wheel comes in handy when it comes to flat tires or bursts.
- Make sure a jack and wheel spanner is there because you will have tough time to change a wheel without it.
- Ensure there is enough engine oil and brake fluid for the proper functioning of the car.
- The car cooling system must be well supplied with water and coolant fluid.
Take a proper video of the car’s interior and exterior before renting it. Write down the wear and tear that’s already there. Make sure to have a proof of car’s condition before renting so you there won’t be any disputes when you will be returning it.
Conclusion
A car rental agreement is essential document that protects the rights of both car company and customer. As a renter, you must understand the terms and conditions in order to prevent disputes while returning the car. Pay attention to this agreement and do not sign without understanding it. A lot of disputes happens because a customer fails to comply with the terms and conditions, so make sure to understand the agreement and then sign it.