While many consumers worry over their risk of renting a vehicle due to the potential for fees and charges, the primary risk stands with the car hire company.
They genuinely have no idea who they’re “lending” their car to. The company has to take your word that you’ll bring the auto back to them and do so in good condition.
The signed contract is their only legal document, but that piece of paper doesn’t prevent someone from running off with the car, never to return. Many people travel great distances, with some taking a holiday in a Leiebil Sardinia (translation: rental car Sardinia) in Italy.
They could stay there or travel to another location unknown to the agency.
Fortunately, these incidents are rare, with guidelines to handle the situation and subsequent repercussions. Still, there is a rhyme or reason to the agencies’ system.
If not, there would be turmoil. Let’s look at a few things that create the most risk and worry for car rental companies.
Where is The Most Risk for Rental Car Agencies
People who hire cars fret over the risk they take when renting a vehicle with fees and charges plus the potential for damages that they didn’t create.
They don’t realize that the auto provider has similar fears only for different reasons. The agencies’ risks are vast and can be detrimental to the business.
If a vehicle goes missing or someone destroys a car without having coverage, cars can be lost from the fleet, creating a shortage and causing a company to lose business.
If that were to happen regularly, it would be severely damaging. Some fears that rental providers face when sending cars out with consumers include:
Damages
Some people are cautious with a rental car, and others are aware that it’s not their car, so they don’t care how they treat it. Many want to hire a car to save misuse of their personal auto.
The provider understands that in a lot of cases, the vehicles will be returned in disrepair compared to how they were sent out.
This is one of the reasons the agents find it necessary to push the issue with insurance. That way, some of what occurs can be taken care of for those guilty of not being mindful when traveling. Not everyone, but they don’t know who will and who won’t.
Hard wear
Most rental providers retire their cars at no more than 35,000 miles due to the hard traveling and wear that the vehicles undergo with all the drivers who sign them out.
Of course, many people not only travel a great distance but also use the cars for road trips once they reach their destination.
Some individuals don’t follow recommended fueling instructions and engage in harsh acceleration when driving. It makes the autos ready to leave the hiring world and either be sold at auction or simply retired depending on their condition.
Overbooked with cars
Peak seasons are an exceptionally tough time for independent rental car companies. These are most often the times when cars get overbook. Many people will reserve autos in advance, plus customers walk in to sign out vehicles.
It can become quite chaotic attempting to maintain a sense of decorum with frustration among the agents and the clients.
Despite being overbooked, the provider has an obligation to provide a vehicle to a customer who makes a reservation even when none is available on the lot.
That can often mean calling to a different location and having one brought to the client or asking the person to wait on the next one being returned. It is not a good situation for the company or the customer but can, unfortunately, happen during busy times of the year.
Arriving early for pick up
It’s always better for customers to call ahead if they intend to arrive early to pick up an auto. If you show up unannounced, it can throw off a timeline the agency works very hard to keep running smoothly.
The timeline is as it is since there are a specific number of cars, and these are all generally signed out with a continuous flow on a tight schedule to allow everyone to have what they need when requested per the reservations sent in.
Early arrivals generally will need to wait until their car is available. The vehicle needs to be cleaned up and inspected after being returned to ensure no liability for the agency.
Late arrivals are as bad since people walk in looking for possible rentals available, especially in peak season. The rental agencies will typically hold a car for a latecomer roughly for about four hours and then release it to someone else.
But the suggestion is that you call if you know you will be late so the company can prepare their schedule accordingly. The company often understands planes get delayed or there’s traffic which is why they give the grace period.
Delayed return
When you decide to return the car at leisure without calling, it can create a mound of trouble since the rental agency has to take stock if you’ll be bringing the vehicle back and adjust the schedule since it’s not back on time.
The company will put a call out to you until you respond to find out where the auto is and if you intend to keep it, and for how long so they can make arrangements.
It would help if you kept in contact with the provider so they know when to expect the car back on the lot. The vehicle needs to be inspected when returned and cleaned before the next driver can sign it out.
Plus, the provider needs to ensure that they can anticipate your bringing the auto back.
If cars aren’t returned and need to be found, they are exceptionally damaged in many cases. That means the agency will need to either consider replacing it on their fleet or function minus one car.
Insurance
The companies hope there is insurance of some sort provided, whether it be rental insurance, a private auto carrier, or a premium credit card, so there’s less of a worry when the vehicles are returned with any sort of issues that need repairs.
The providers do encourage the insurance, but in the end, it not only protects their interest but it also protects the client from exorbitant costs when something does happen.
You don’t have to take it, it’s not a requirement, and the agencies don’t force anyone to do so. But it is wise to inquire then with your carrier or a premium credit card to make sure one or the other (maybe both) will cover rental cars, so you’re not stuck paying out of pocket.
You can also pay for the rental with the same credit card. Go here for details on paying car hire using credit or debit cards.
Final Thoughts
Consumers find the potential for getting exorbitant fees and charges with renting a car taking a considerable risk, not to mention the potential for accusations of causing damages.
The rental company takes an even greater risk sending cars out with merely a signature as a promise that the auto will be returned and in the condition it was signed out.
The rental provider asks for a deposit on the client’s credit card, helping to stave off some of their possible risks. They can ask up to 25% of the rental cost varying from agency to agency.
That’s a significant amount. This will stay with the company should anything happen to the vehicle and there be no insurance to cover the damages. Find out the available balance you should have on a credit card when hiring a car at https://pocketsense.com/available-balance-need-credit-card-rent-car-22180.html.
Still, if the car disappears, it’s a significant loss that takes quite a while to recover, if at all. Who has the most risk? That’s up for debate.
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