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Understanding Car Rental Contracts

Before signing your rental car contract and driving away with the car, you need to know everything that you have agreed upon with the rental car owner. This is important so that if something goes wrong while you have the rental car, you will know who would be responsible, how much you are going to be charged when you return it, and what happens if the car gets scratched which you are driving it. Before signing your rental car agreement, make sure that these issues are clearly spelled out in the contract.

Rental car owners would usually ask renters if they want to purchase their insurance policy. A lot of people say no by instinct without even thinking of what that entails. You better be sure who would be responsible if you rental car gets damaged while it is in your possession. And, if you have no insurance, then you would be responsible.

However, it does not mean that you need the rental car company’s insurance policy. If your current car insurance company covers rental cars, then you can use your own insurance policy for damages. If your insurance company offers full coverage on rental cars, then everything is taken care of.

If you paid your rental car with your credit card, it is good to check with your credit card company for any charges on insurance. When you are using your credit card of rental car payments most rental companies automatically put rental car insurance on your rented cars using your card.

It is still important to have insurance so you opt to buy the rental car’s insurance if you don’t have any. You car time will be lost if you need to have the rental car repaired. It will take around three days to fix a car, and you will have to pay for three days of rental on the car since the rental car company cannot make money during that time frame.

Damages to a rental car do not always have to be in an accident. Getting the car scratched means extra charges for you. Do a thorough inspection of the car before taking it with you. If you find some damages or scratches, make sure that you have it noted on your contract.

Finally you return your rental car with a certain amount of cost in mind. But your will likely be surprised when you get your final bill due to additional fees and charges. This will include rental car taxes.

You also need to pay for gas usage. There are some companies who will charge you with a flat rate for gas but you are required to return the car almost empty. Others will require you to return your car with full gas but will not charge you gas fees.

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