Considering to run a car? If yes then make sure to know about car rental agreement in order to secure your legal right. A car rental agreement is equally important for both parties i.e. rental company and an individual who’s renting a car. Renting a car is very common specially when you’re on a vacation or trip. These days many people consider renting a car wise decision than actually owing it.
This debate of renting vs buying a car is a separate topic, we will discuss it some other day. For now let’s stick to the car rental agreement.
Here is the Definition
A car rental agreement is a legal document that is prepared to legalize the entire rental process. It contains the information of both the parties, rent amount, rent duration, terms & conditions, etc. This agreement is read and signed by both the parties that the car was taken in good condition and will be returned in good condition.
Inspect Vehicle Condition
As an individual renting a car, make sure to take a full video of car’s exterior & interior to record the actual condition of the car before renting it. Keep this video as a proof and it may come in handy in case there is any dispute over the condition of a car while returning it.
Contents
Pay Attention While Signing the Car Rental Agreement
The most common mistake people do while renting a car is that they don’t read the agreement carefully. Don’t do the mistake of signing the agreement before reading it carefully.
Following are some of the things you should check before renting a car
- make of the car
- its technical condition
- VIN number
- amount of fuel
- other operating fluids
- insurance of the car
- daily cost of renting a vehicle
- understand how to extend the rental period
- know where and when to return the car
- know if there are any additional fees or hidden charges
- understand the general terms of use
The condition of the car before renting and after renting is where most of the disputes occur. As a renter, make sure to make a detailed of the car’s condition before renting it. Renting a car is a responsible task so do it carefully.
If you have any doubts or questions related to the car then make sure to clear them before signing the agreement. Again, READ THE AGREEMENT VERY CAREFULLY BEFORE SIGNING IT!
This is how a Car Rental Agreement Looks Like
As you can see there are different elements of a car rental form such as:
- Rental Vehicle Details are there i.e. make, model, year, color, mileage, VIN, etc.
- Rental Period is there i.e. start date and end date of a rental
- Mileage Limit is there
- There is a section for Rental Fees
A car rental agreement is usually a 2 to 3 page document where everything is covered in detail. Reading a 2 or 3 page document is a daunting task but you have to do it. Never sign an agreement before reading and understanding it.
Watch Youtube Video to Understand Car Rental Agreement in Detail
If you are looking to create a rental agreement then we do check out the free editable templates shared at the end of this post.
Responsibilities of Renter and Rental Company
Both renter and rental company has responsibilities,
Following are the Renter’s Responsibilities:
- Make sure to provide the accurate personal information i.e. name, address, age, driving license, etc.
- Inspect the vehicle’s condition before accepting it and if you see any existing damage then report it to the rental company.
- Drive rental car as your own and follow all traffic laws and regulations during the rental period.
Following are the Rental Company’s Responsibilities:
- Do not hide any details or fees
- Disclose all applicable charges and fees upfront
- Provide only the roadworthy vehicle
- If a renter has any issues or concerns then make sure to address them promptly and professionally
Understanding Terms & Conditions
A rental company may put many additional charges under terms and conditions so make sure to understand them. Following are some of the charges and penalities what you may find in an agreement.
- Excess Mileage Charges: If the renter exceeds the mileage limit specified in the agreement then an additional fees is charged.
- Late Return Penalties: There will be additional charges if the customer return the vehicle after the agreed-upon date and time
- There could be addition fees if the vehicle is returned with less than a full tank of fuel
These are some of the charges and penalties which you need to discuss with the rental company before signing the agreement.
Final Words
Renting a car is a responsibility so do it carefully. Do not sign the agreement before understanding terms, conditions, and fees associated with the rental. Make a video of any existing damages and document them in the agreement. If you are unclear about certain terms or conditions then make sure clear them with the rental company before agreeing. A car rental agreement is prepared to safeguard the legal rights of both the rental company and the customer.
Make sure to educate yourself with the car rental agreement in advance so you can make an informed decision while renting and have a stress free rental experience.
Download Car Rental Agreement Template
