What Is a Car Rental Agreement?
A Car Rental Agreement is a contract between the owner of a car and a person who desires to temporarily use this car for a fee. By renting a car you get the keys and access to a car for a pre-agreed upon period of time. Keep in mind that the templates provided below are for short-term rentals, and cannot be used as lease agreements. Although in both cases you are paying for having access to a vehicle owned by someone else, there are some differences.
One major difference between leasing and renting cars lies in the duration of the hiring period. Leasing presupposes a longer-term commitment, through which you can use the car as your own. Renting a vehicle is similar to buying a car, in the sense that you are paying as long as you want to keep it. Other differences include the provider type and insurance requirements.
You can use one of our Car Rental Agreement templates if you want to rent any kind of vehicle for yourself or for another party. It may also be useful in the event when you wish to place restrictions on mileage, the country of use or on certain users. By downloading the template, you can liberate yourself from some unexpected hassle down the road.
What Does a Car Rental Agreement Look Like?
The agreement to rent a car can vary depending on the situation, but usually, it includes the following clauses:
- Identification of the rental vehicle (make, model, year, VIN, etc.). Alternatively, your first clause may be General Provisions, describing the parties involved and their obligations;
- Time period (estimated start and end dates). The clause may be called Reservations and contain various aspects of reservations cancellations, exceptions and agents;
- Scope of use (this clause places limitations on the vehicle operator, the location and other modalities). Alternatively, the terms related to inspection and maintenance may be part of a larger section called Responsibilities;
- Rental fees (fuel requirements, the base rate per base rate increment);
- Security deposit;
- Insurance. There may be a section called something like Measures for Accidents, Violations, and Theft;
- Indemnification (compensation for harm or loss);
- Representations and warranties;
- Jurisdiction. Other contacts may include clauses on Return, Miscellaneous Provisions and so on.
By signing a car rental agreement, you take responsibility for the use of the vehicle and assume liability for third-party injuries or damage that may be caused by your driving.