Bike and Car Renting Laws in Gujarat

Posted on February 20, 2025February 20, 2025 | by pritesh K

Table of Contents

1. Introduction

Gujarat, known for its rich cultural heritage and diverse landscapes, attracts numerous tourists and business travelers. To cater to their transportation needs, several rental services provide bikes and cars on a short-term basis. Understanding the rental policies, eligibility criteria, and associated costs is crucial for a hassle-free experience.

1. Types of Rentals Available

Bike Rentals: Available for short-term use, often catering to both local and tourist travelers. These can range from scooters to motorbikes.
Car Rentals: Available for personal or business use, offering both manual and automatic transmission cars.

2. Rental Process

Booking Online or Offline:
- Online: Rental services often allow users to book through their websites or apps, with details on vehicle availability, location, and pricing.
- Offline: Some rental services offer in-person booking at their physical rental counters.
Identification and Documentation:
- Required Documents:
  - Valid driving license (must be at least 21 years old for cars, 18 years for bikes).
  - Government-issued ID (Aadhaar, passport, etc.).
  - Proof of residence (for non-Gujarati residents).
- Deposit: A security deposit may be required and is refundable upon the return of the vehicle.

3. Eligibility Criteria

Age Requirements:
- Typically, the minimum age for renting a vehicle is 21 years for cars and 18 years for bikes.
- Some services may have an upper age limit, generally around 60 years.
Driving Experience:
- Most rental services expect the renter to have a minimum of 1-2 years of driving experience.
License Type:
- An international driving permit (IDP) is required for foreign nationals.

4. Rental Costs

Base Rent:
- Rent can vary depending on the type of vehicle (bike or car), model, and duration of the rental.
- Bike Rentals: Typically range from ₹300–₹1500 per day, depending on the model.
- Car Rentals: Generally range from ₹1500–₹5000 per day for standard cars. Luxury or premium cars can cost more.
Additional Charges:
- Fuel costs, as some rental companies charge extra for the fuel used during the rental period.
- Late Return Fees: If the vehicle is returned late, additional charges may apply.
- Insurance: Some rentals may include basic insurance in the rental price, but customers can opt for additional coverage.

5. Rental Duration and Flexibility

Rentals can range from a few hours to several days, weeks, or months. Most rental services provide flexible options.
Hourly Rentals: Many services offer hourly rentals, particularly for bikes, starting at a few hundred rupees per hour.
Daily/Weekly Rentals: These are the most common and typically come at a discounted rate for longer durations.

6. Terms and Conditions

Damage to Vehicle:
- Customers may be held responsible for any damages to the vehicle during the rental period.
- Renters may be required to pay for repairs, based on the terms of the rental agreement.
Fuel Policy:
- Some companies operate on a full-to-full fuel policy, where the vehicle is delivered with a full tank and must be returned with a full tank.
Cancellation Policy:
- Most services allow cancellations, but some may charge a cancellation fee or a percentage of the total rental amount.

7. Return Process

Vehicle Inspection: The rented vehicle is usually inspected upon return for any damages or fuel discrepancies.
Refund Process: The security deposit is typically refunded after vehicle inspection, minus any charges for damages or late returns.

8. Insurance and Safety

Insurance Coverage:
- Basic insurance is typically included, but renters can opt for additional coverage for personal injury or damage.
- Some rental companies provide 24/7 roadside assistance in case of an emergency.

9. Popular Rental Locations in Gujarat

Ahmedabad: Many rental services are located around major tourist attractions and the airport.
Surat, Vadodara, and Rajkot: These cities also offer rental services, often with a focus on business travelers.
Coastal Areas: Coastal cities like Diu and Dwarka may have seasonal rentals available for tourists.

10. Customer Reviews and Ratings

Research and Reviews: It’s important to check customer reviews and ratings online for the rental services, as they help gauge the reliability and quality of the vehicles.
Customer Support: Ensure that the rental company has reliable customer service for any issues during the rental period.

11. Additional Tips

Pre-Book During Peak Seasons: Booking in advance is recommended during peak travel seasons (like festivals or holidays) to ensure vehicle availability.
Check for Discounts or Offers: Some rental services offer seasonal discounts or promotional offers.

2. Policies, Terms, and Conditions

Rental services in Gujarat have specific policies to ensure the safety and satisfaction of both the provider and the renter.

Eligibility Criteria

Requirement	Details
Age	Minimum age of 18 years for bike rentals and 18 years for car rentals. Some agencies may have higher age requirements for premium vehicles.
Driving License	Valid Indian driving license for residents. International tourists need an International Driving Permit (IDP) along with their home country license.
Documents	Government-issued ID proof (e.g., Aadhar card, Passport) and address proof.

Rental Agreement

Before renting, customers must sign a rental agreement outlining the terms and conditions, including rental duration, vehicle condition, and responsibilities of both parties.

Step 1: Eligibility Criteria

Age Requirement
- For bike rentals, the renter must be a minimum of 18 years old.
- For car rentals, the renter must also be at least 18 years old. Some agencies may have a higher age requirement for renting premium vehicles (e.g., luxury cars).
Driving License
- For Indian residents, a valid Indian driving license is required.
- International tourists need an International Driving Permit (IDP) along with their home country driving license.
Documents
- Renters must provide government-issued ID proof (such as an Aadhar card or passport).
- Address proof is also required, which can include documents like utility bills, lease agreements, or a government-issued letter.

Step 2: Rental Agreement

Before renting any vehicle, the customer must sign a rental agreement. This agreement will outline the following terms and conditions:

Rental Duration – The specific duration of the rental period, which could be hourly, daily, or for a longer term.
Vehicle Condition – The agreement will detail the condition of the vehicle at the time of renting. It may include any existing damages or issues, and the renter is responsible for returning the vehicle in the same condition (except for normal wear and tear).
Responsibilities of Both Parties – The rental agreement will clarify the responsibilities of both the provider and the renter:
- The renter must ensure safe use of the vehicle, avoid traffic violations, and return it on time.
- The provider must ensure the vehicle is in good working condition and available for use at the agreed time.

3. Costs and Charges

Understanding the financial aspects of vehicle rentals helps in budgeting and avoiding unexpected expenses.

Fuel Cost

Vehicle Type	Fuel Policy
Bikes	Generally provided with enough fuel to reach the nearest petrol station. Renters are responsible for subsequent refueling.
Cars	Typically come with a full tank; renters must refill to the same level before returning. Policies may vary by agency.

Additional Charges

Charge Type	Details
Interstate Taxes	Applicable if the vehicle is driven outside Gujarat. Renters are responsible for paying these taxes.
Parking Charges	Renters must bear all parking fees during the rental period.
Toll Taxes	All toll charges encountered during the journey are to be paid by the renter.
Security Deposit	Refundable deposit collected at the start of the rental. Amount varies based on vehicle type and rental agency.

1. Fuel Cost

Bikes:
- Renters are provided with enough fuel to reach the nearest petrol station.
- Renters are responsible for refueling the bike after that, including any additional fuel requirements during the rental period.
Cars:
- Typically, cars come with a full tank of fuel.
- Renters must refill the tank to the same level as when the car was picked up before returning it.
- The refueling policy may vary depending on the rental agency.

2. Additional Charges

Interstate Taxes:
- If the vehicle is driven outside Gujarat, interstate taxes will apply.
- Renters are responsible for paying these taxes as part of their rental agreement.
Parking Charges:
- Renters are required to pay all parking fees during the rental period.
- This may include parking at public spaces, hotels, or other areas.
Toll Taxes:
- Any toll charges incurred during the journey (for example, highway tolls) are to be paid by the renter.
- This is an additional cost that is separate from the rental fee.
Security Deposit:
- A refundable deposit is collected at the start of the rental process.
- The amount of the deposit varies depending on the vehicle type and the rental agency’s policies.
- This deposit is refunded at the end of the rental period, provided there is no damage to the vehicle or other issues.

4. Inclusions and Exclusions

Knowing what’s included in the rental package helps in assessing its value.

Inclusions

Basic Insurance: Covers third-party liabilities. Renters may opt for additional coverage.
One Helmet: Provided with bike rentals as per safety regulations.
Roadside Assistance: Some agencies offer support in case of breakdowns.

Exclusions

Fuel Expenses: As mentioned, fuel costs are typically borne by the renter.
Fines and Penalties: Any traffic violations or fines during the rental period are the renter’s responsibility.
Personal Accident Insurance: Usually not included but can be purchased separately.

Inclusions:

Basic Insurance:
- This insurance covers third-party liabilities in the event of accidents or damage caused to others.
- Renters can choose to upgrade their insurance or purchase additional coverage for a broader range of protection.
One Helmet:
- A helmet is provided with the bike rental as per safety regulations.
- If you need more helmets for passengers, you might need to rent additional helmets.
Roadside Assistance:
- Some rental agencies provide roadside assistance in case of breakdowns, flat tires, or other mechanical failures.
- This service is meant to help you if you experience an issue while riding the bike, making it more convenient for renters.

Exclusions:

Fuel Expenses:
- Renters are typically responsible for fuel costs during the rental period.
- Ensure you have sufficient fuel before starting your trip, as refueling costs will be on you.
Fines and Penalties:
- If you receive any traffic fines, speeding tickets, or penalties during the rental, you, as the renter, are responsible for covering these costs.
- It’s important to follow traffic rules to avoid unexpected expenses.
Personal Accident Insurance:
- Personal accident insurance is generally not included in the rental package.
- Renters can opt to buy additional personal accident coverage for added protection during the rental period.

5. Vehicle Usage and Limitations

Understanding usage policies ensures compliance and avoids penalties.

Kilometer Limitations

Vehicle Type	Daily Kilometer Allowance	Excess Kilometer Charges
Bikes	Varies by agency; some have limits (e.g., 150 km/day)	Charges apply per extra km (e.g., ₹5/km)
Cars	Often come with daily limits	Excess kilometers are chargeable; rates vary

Geographical Restrictions

Some rental agreements prohibit taking vehicles outside Gujarat without prior permission. Violating this can lead to penalties or voiding of insurance coverage.

1. Kilometer Limitations

Bikes
- Daily Kilometer Allowance: Varies by agency.
  - Example: Some agencies may set a daily limit, such as 150 km/day.
- Excess Kilometer Charges:
  - Charges may apply if the daily limit is exceeded.
  - Example: ₹5 per extra km driven beyond the allowed limit.
Cars
- Daily Kilometer Allowance: Typically comes with daily limits, which vary by rental agency.
- Excess Kilometer Charges:
  - Additional charges are imposed if the vehicle exceeds the allowed kilometers.
  - Rates for excess kilometers differ between agencies.

2. Geographical Restrictions

Prohibited Areas:
- Many rental agreements prohibit taking vehicles outside certain states, such as Gujarat.
Prior Permission Required:
- If you plan to take the vehicle outside the restricted area, you must obtain prior approval from the rental agency.
Penalties:
- Taking the vehicle outside the permitted areas without approval may result in:
  - Penalties imposed by the rental agency.
  - Voiding of insurance coverage, leaving the renter liable for any damages or issues that arise.

3. Importance of Compliance

Avoiding Penalties: Ensure that the vehicle is used within the allowed limits and geographical boundaries to avoid additional charges or legal issues.
Insurance Coverage: Violating restrictions, such as driving outside allowed areas or exceeding the kilometers, could void the vehicle’s insurance coverage, leaving the renter liable for all damages.

6. Vehicle Maintenance and Breakdown Policy

Ensuring the vehicle’s upkeep during the rental period is vital.

Regular Checks: Renters should routinely check oil levels, tire pressure, and other essentials.
Breakdowns: In case of mechanical failure, renters must inform the rental agency immediately. Some agencies provide replacement vehicles or repair services.

1. Regular Vehicle Maintenance Checks

Renters are responsible for the vehicle’s general upkeep during the rental period. This includes ensuring that the vehicle is in safe and operable condition at all times.

Step-by-Step Maintenance Guidelines:

Oil Levels: Renters should check the oil levels before using the vehicle. Ensure the oil is at an optimal level as indicated in the vehicle’s manual.
Tire Pressure: Renters should check tire pressure at regular intervals to ensure the tires are adequately inflated. Low tire pressure can affect the vehicle’s handling and fuel efficiency.
Fluid Levels: Renters should ensure that essential fluids (brake fluid, transmission fluid, coolant, power steering fluid, etc.) are at the required levels.
Lights and Signals: Ensure all vehicle lights (headlights, brake lights, turn signals) are functional before driving.
Windshield Wipers: Check the wiper blades for any damage or wear, and ensure there’s enough windshield washer fluid for clear visibility.
Brakes and Suspension: Renters should listen for any unusual noises when applying the brakes or driving over bumps. If there are any issues, it’s advisable to report them immediately.

2. Breakdown Protocol

In the event of a mechanical breakdown, it’s crucial to handle the situation efficiently and follow the agreed-upon procedures for repairs or replacement.

Step-by-Step Breakdown Procedure:

Informing the Rental Agency:
- Immediately notify the rental agency in case of a breakdown. Provide all relevant details, including the vehicle’s location, the issue you’re facing, and any other necessary information.
- Most rental agencies provide a 24/7 emergency contact number, which renters should keep handy.
Repair or Replacement Process:
- On-Site Repairs: Some rental agencies offer roadside assistance to fix minor issues on the spot. This may include flat tires, battery issues, or minor mechanical failures.
- Replacement Vehicle: If the breakdown cannot be repaired quickly, the rental agency may offer a replacement vehicle. This typically depends on the rental agreement and availability of vehicles in the area.
- Towing Services: In cases where the vehicle cannot be repaired on-site, the agency will likely arrange for towing. The agency will then either repair the vehicle or provide a replacement.
Rental Agreement and Liabilities:
- Review the rental agreement to ensure that it includes provisions for mechanical breakdowns. Some agreements may specify that renters are responsible for certain types of repairs or fees.
- Renters may be liable for certain costs related to breakdowns if caused by negligence, such as failure to maintain the vehicle or improper usage.

3. Guidelines for Renters to Prevent Breakdowns

Drive Responsibly: Avoid aggressive driving, sudden braking, and overloading the vehicle, as this can cause undue stress on the engine and other components.
Follow the Manufacturer’s Recommendations: Adhere to the manufacturer’s service and maintenance recommendations, which can be found in the vehicle manual.

4. Additional Considerations

Insurance Coverage: Renters should be aware of the insurance coverage provided by the rental agency for breakdowns. Some agencies offer breakdown insurance as an optional add-on to the rental agreement.
Documentation: Renters should keep a record of any maintenance or repairs done during the rental period, especially if it involves costs.

7. Return Policy

Adhering to return protocols helps in avoiding additional charges.

Timely Return: Vehicles should be returned at the agreed time. Delays may incur extra charges.
Vehicle Condition: The vehicle must be returned in the same condition as at the start of the rental, barring normal wear and tear.
Fuel Level: For cars, ensure the fuel level matches the level at the time of pickup.

1. Timely Return

Agreement: The vehicle should be returned at the time specified during the rental agreement.
Late Return: If the vehicle is returned later than the agreed time, additional charges may apply.
Grace Period: If any grace period is given, specify it clearly in the policy.

2. Vehicle Condition

Original Condition: The vehicle must be returned in the same condition it was in when you received it, except for normal wear and tear.
Damage Assessment: If any damage is found on the vehicle, you may be required to pay for repairs or replacement of parts.
Cleaning Requirements: Specify if the vehicle needs to be cleaned before return or if cleaning charges apply for unclean vehicles.

3. Fuel Level

Fuel Requirement: For car rentals, the fuel level should be the same as it was at pickup.
Fuel Charges: If the fuel level is lower upon return, you may be charged for the difference in fuel at a higher rate or a refueling fee.

8. Payment Procedures and GST

Understanding payment structures and taxes ensures transparency.

Payment Modes: Most agencies accept credit/debit cards, UPI, and cash.
GST Rates: Vehicle rental services attract a Goods and Services Tax (GST) of 18% in India.

1. Payment Modes

Agencies typically accept the following payment modes:

Credit/Debit Cards: Most rental services accept major credit and debit cards for transactions.
UPI (Unified Payments Interface): Payment through UPI apps like Google Pay, PhonePe, Paytm, etc., is widely accepted.
Cash: Some agencies may still accept cash payments, although this is becoming less common with digital payment systems.

2. GST (Goods and Services Tax) Rates

Vehicle rental services in India are subject to Goods and Services Tax (GST) at the following rates:

Standard GST Rate: Vehicle rental services attract a GST rate of 18%. This includes both bike and car rentals, and it’s applied to the total rental amount.

Breakdown of GST:

GST Calculation: If the rental charge for a vehicle is ₹1000, the GST will be ₹180 (18% of ₹1000). So, the total bill will be ₹1180 (₹1000 + ₹180).

3. GST Invoice

When you rent a vehicle, the rental agency must provide you with an invoice that includes:

The base rental amount
The applicable GST amount (18%)
The total payable amount (including GST)

4. GST Filing and Compliance

For Rental Agencies: The rental agency is responsible for paying the GST to the government. They must file GST returns regularly, showing the amount collected from customers.
For Customers: As a customer, the GST you pay on vehicle rentals is non-refundable unless it’s part of a specific business expense, such as for corporate travel.

5. Impact on Pricing

Increased Cost: The GST on vehicle rentals directly impacts the total price you pay. Rental agencies typically include the GST amount in the final invoice.
Transparency: It is essential that the rental agency displays the GST charge clearly on their invoice to ensure transparency in pricing.

9. Renter’s Liability

Renters must be aware of their responsibilities to avoid disputes.

Damage to Vehicle: Renters are liable for any damage caused during the rental period. It’s advisable to inspect the vehicle thoroughly before acceptance.
Theft: In case of theft, the renter may be held responsible unless additional insurance coverage was purchased.

1. Responsibility for Vehicle Damage

What to Do:
- Renters are responsible for any damage that occurs to the vehicle during the rental period.
- It is essential to thoroughly inspect the vehicle before accepting it, noting any existing damage.
Action Before Renting:
- Conduct a detailed inspection and document the vehicle’s condition (photos or written report).
- Report any pre-existing damage to the rental company before taking the vehicle.

2. Insurance Coverage

Standard Liability:
- Renters are often held liable for any damage or theft unless they purchase additional insurance or damage protection.
- Check if the rental company offers collision damage waivers (CDW), theft protection, or third-party liability insurance.
Action Before Renting:
- Decide whether to purchase additional insurance coverage. This could lower your liability in case of accidents or theft.
- Review the terms and conditions of the rental agreement regarding insurance coverage.

3. Theft of Vehicle

What Happens in Case of Theft:
- If the vehicle is stolen, the renter may be held financially responsible unless they opted for additional insurance that covers theft.
- A police report must be filed promptly, and the rental company must be notified as soon as the theft is discovered.
Action Before Renting:
- Ensure that the rental contract specifies the terms of theft liability.
- If theft protection insurance is available, consider purchasing it to minimize your risk.

4. Returning the Vehicle

Inspection Upon Return:
- The rental company will inspect the vehicle when returned. If any new damage is found, the renter will be held accountable for repair costs.
Action When Returning:
- Consider doing another inspection with the rental company present to document the vehicle’s condition at return.
- Ensure any charges for damage or theft are clearly explained.

5. Potential Disputes

How to Avoid Issues:
- Keep a copy of the rental agreement, including any insurance or damage protection purchased.
- Document the vehicle’s condition before and after the rental.
In Case of Dispute:
- If there’s a dispute regarding damage or theft, communicate clearly with the rental company and refer to the documentation you have.

10. Insurance and Accident Policies

Being informed about insurance helps in handling unforeseen events.

Basic Coverage: Includes third-party liability.
Comprehensive Coverage: Optional and covers damages to the rental vehicle and personal injuries.
Accidents: Immediate reporting to the rental agency and local authorities is mandatory.

1. Understanding Insurance Types

Basic Coverage

What it covers:
- Third-party liability: This protects against damages caused to other people or property during the rental period. If the driver of the rental vehicle is involved in an accident, this coverage will handle costs for any injuries or damages to third parties.
Important Points:
- Basic coverage does not protect the rental vehicle or the driver’s personal injuries.
- It is usually included in the rental price.
- May be required by local laws.

Comprehensive Coverage

What it covers:
- Covers both damages to the rental vehicle and personal injuries.
- It includes repairs to the vehicle, theft, vandalism, and some additional coverages.
- Offers protection for the driver as well, covering medical expenses resulting from injuries in an accident.
Important Points:
- This coverage is optional, meaning it must be added separately if desired.
- This insurance will typically have a higher cost but offers more security.

2. Accident Reporting Process

Immediate Actions After an Accident

Step 1: Ensure Safety
- Make sure everyone involved in the accident is safe. If there are any injuries, call for medical assistance immediately.
Step 2: Call Local Authorities
- Report the incident to the local police or law enforcement. They will document the accident and may provide an official report.
- The authorities will also verify the circumstances and establish fault if necessary.

Step 3: Report to the Rental Agency

Contact the Rental Agency:
- You must immediately inform the rental company about the incident, as stipulated in most rental agreements.
- Provide them with the official police report, details of the accident, and any necessary documentation they require.
Follow Rental Agency’s Instructions:
- They may guide you through the claims process, such as how to submit the accident report and the next steps for either vehicle repairs or compensation.

3. Handling Vehicle Damage and Claims

For Basic Coverage:

You will not be covered for damage to the rental vehicle or your injuries. However, your third-party liability coverage will take care of damages to others.

For Comprehensive Coverage:

If you have opted for this, the rental company will typically assess the damage.
They may either:
- Repair the vehicle and bill the insurance company.
- Provide a replacement vehicle if the damage is severe.
- Cover medical bills if you or your passengers were injured in the accident.

4. Exclusions and Restrictions

Common exclusions include:
- Driving under the influence of alcohol or drugs.
- Driving outside the geographical limits or on unpaved roads.
- Failure to report an accident or provide correct documentation.

Step 5: Documentation for Claims

Gather all relevant documents to support the claim process:
- Police report.
- Witness statements.
- Photos of the accident and damages.
- Rental agreement and insurance details.

Step 6: Claim Process

Submit all required documents to the rental company and follow up regularly on the status of your claim.
If the rental company is covered by an insurance provider, the claim may be processed through them.

5. Cost of Insurance and Liability

Basic Coverage Cost: Usually included in the rental price.
Comprehensive Coverage Cost: Added to the rental price; varies based on the type of vehicle and rental duration.
Deductibles: Some rental agreements may have a deductible, which is the amount you need to pay before insurance kicks in.

6. Final Steps and Considerations

Review Your Rental Agreement: Always go through the rental contract to understand the details of the insurance coverage offered and the associated costs.
Check Your Own Car Insurance: Some personal car insurance policies may already cover rental vehicles, so you may not need to purchase additional coverage.
Credit Card Benefits: Many credit cards offer rental car insurance if you use the card to pay for the rental, which can be useful in case of an accident.

11. Additional Considerations

Helmets for Pillion Riders: While

Step 1: Legal Requirements

In many regions, pillion riders are required by law to wear a helmet for safety.
Check local traffic laws and regulations to ensure compliance with helmet laws for pillion riders.
In India, for example, it is mandatory for both the rider and the pillion rider to wear helmets.

Step 2: Choosing the Right Helmet

Type of Helmet: The most common types of helmets are full-face, open-face, and half-helmets.
- Full-face helmets provide maximum protection by covering the whole head and face.
- Open-face helmets cover the head but leave the face exposed.
- Half-helmets cover just the top of the head and offer minimal protection.
Fit: Ensure that the helmet fits snugly but comfortably. A helmet that’s too tight can cause discomfort, and one that’s too loose can compromise safety.
Certification: Always choose helmets that are certified by safety standards (such as ISI in India or DOT in the USA).

Step 3: Comfort and Features

Padding: A comfortable inner padding is important for long rides.
Ventilation: Good ventilation will keep the rider cool and prevent fogging on the visor.
Visor: Consider helmets with a clear visor or one that protects from UV rays and dust.
Weight: Ensure that the helmet is not too heavy, as this can cause strain during longer rides.

Step 4: Helmet for Pillion Riders Specific Features

Visibility: Ensure the helmet is bright and noticeable, especially in low-light conditions.
Chin Strap: Check the chin strap is secure and adjustable for a proper fit.
Safety: In addition to certification, helmets should have a solid build that can protect against impact in case of an accident.

Step 5: Maintenance

Cleaning: Regularly clean both the inner and outer parts of the helmet to maintain hygiene and performance.
Inspection: Periodically check for any damage, such as cracks or broken straps, and replace the helmet if needed.

Step 6: Education and Awareness

Encourage pillion riders to understand the importance of wearing a helmet for their safety.
Provide information on how helmets reduce the risk of head injuries in case of accidents.