Bike and Car Renting Laws in Himachal Pradesh

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

Table of Contents

1. Introduction

The “Rent a Motor Cycle Scheme 1997” was adopted by the Government of Himachal Pradesh to regulate motorcycle rentals, ensuring safety and standardization in the industry. Car rentals, though not governed by a specific state scheme, adhere to national motor vehicle laws and individual company policies.

1. Overview of the Scheme

The “Rent a Motor Cycle Scheme 1997” was implemented to regulate motorcycle rentals within Himachal Pradesh.
It aims to ensure safety, standardization, and accountability for motorcycle rental services.

2. Regulations for Motorcycle Rentals (Under the Scheme)

Licensing Requirement: Companies and individuals offering motorcycle rental services need to obtain a license from the transport authority in Himachal Pradesh.
Motorcycle Standards: The motorcycles rented out must meet certain safety and operational standards as specified by the authorities.
Insurance Coverage: All motorcycles rented out must have valid insurance that covers accidents, theft, and damage during the rental period.
Age and Health of Riders: Renters must be above a certain age (often 18 or 21), and they should have a valid motorcycle driving license.
Rental Agreement: A standard rental agreement must be signed between the rental company and the customer, which includes terms for damage, theft, and the rental period.
Helmets and Safety Gear: Renters are typically required to wear helmets and other safety gear, and the rental companies must provide these items.
Security Deposit: A security deposit is usually taken from the customer at the time of rental. This is refundable after the bike is returned in good condition.

3. Car Rentals (Regulations and General Requirements)

Car rentals, while not governed by a specific state scheme like the motorcycle rental scheme, are subject to national motor vehicle laws, including the Motor Vehicles Act, 1988.
Licensing: Car rental businesses must be registered and comply with the licensing requirements set forth by both state and national authorities.
Insurance: Cars must be insured under comprehensive insurance policies that cover third-party liability, damage, and theft.
Driver’s License and Age Limit: Renters must possess a valid driving license and meet the age requirements (typically 21 or older).
Vehicle Standards: Cars must pass regular road safety inspections to ensure they are roadworthy and safe for use.
Rental Agreement: A formal agreement must be signed by both parties outlining the rental duration, charges, insurance, and other terms and conditions.
Fuel Policy: Rental companies often provide cars with a full tank of fuel and expect them to be returned in the same condition. If not, additional charges may apply.
Security Deposit: Car rental companies typically ask for a security deposit which will be refunded after the vehicle is returned in good condition.

4. Key Differences Between Motorcycle and Car Rentals

Regulation: Motorcycles are specifically regulated by the “Rent a Motor Cycle Scheme 1997,” while car rentals are governed by the broader framework of national motor vehicle laws.
Safety Gear: For motorcycle rentals, safety gear like helmets is mandatory, whereas this is not required for car rentals.
License and Age: For motorcycles, the age requirement may differ based on the vehicle type, while for cars, it is often set at a minimum of 21 years.
Insurance: Both require insurance, but motorcycle insurance often involves specific coverage for rider safety.

5. Enforcement and Compliance

Both motorcycle and car rental businesses are monitored by the local transport authorities to ensure compliance with all applicable laws and safety standards.
Regular checks and inspections may be carried out by the authorities to ensure the proper functioning of the businesses and the safety of the rented vehicles.

6. Challenges in the Industry

Motorcycle Rentals: Ensuring that motorcycles meet safety standards and that renters follow the rules (like wearing helmets) can sometimes be challenging.
Car Rentals: The lack of specific state regulations can sometimes result in inconsistent rental practices, and the issue of unregulated private rentals can lead to disputes.

7. Recent Updates

The “Rent a Motor Cycle Scheme 1997” has remained in effect for many years, but changes may be made to improve its scope or enhance safety regulations.
National motor vehicle regulations continue to evolve, impacting car rental practices across the country.

2. Policies

Motorcycle Rentals: Under the 1997 scheme, rental agencies must obtain proper licensing and adhere to guidelines set forth by the state government.
Car Rentals: Agencies are required to comply with the Motor Vehicles Act, 1988, and possess valid permits for rental services.

Motorcycle Rentals (1997 Scheme)

Obtain Proper Licensing
- Motorcycle rental agencies must acquire the appropriate licenses to operate within the state.
- This includes the necessary business registration and rental licenses issued by the state government.
Adhere to State Government Guidelines
- Rental agencies must follow guidelines laid out by the state for motorcycle rentals. These can include:
  - Ensuring the motorcycles are roadworthy and properly maintained.
  - Having a valid insurance policy for each vehicle in the fleet.
  - Adhering to safety standards for both riders and motorcycles.
Documentation Requirements
- Customers must provide valid identification (e.g., driver’s license) and a security deposit.
- The rental agency must ensure that all necessary documents are in place for both the agency and the customers.
Insurance Compliance
- Rental agencies must provide adequate insurance coverage for motorcycles.
- This includes coverage for any damage to the motorcycle and third-party liability.
Periodic Inspections and Maintenance
- The motorcycles must be periodically inspected for safety and operational readiness.
- Agencies should have a process for ensuring the bikes are well-maintained and meet the required standards.

Car Rentals (Motor Vehicles Act, 1988)

Compliance with the Motor Vehicles Act, 1988
- Car rental agencies must comply with the rules and regulations set forth under the Motor Vehicles Act of 1988.
- This includes ensuring all vehicles are registered and meet the safety and emission standards set by the Act.
Obtain Valid Permits
- Agencies must obtain valid permits from the relevant transport authorities to operate a rental service. This may include a:
  - Rental vehicle permit.
  - Authorization to operate as a rental service.
Vehicle Registration and Roadworthiness
- All cars used in the rental service must be properly registered with the local Regional Transport Office (RTO).
- Vehicles must meet safety standards, including having valid insurance, roadworthiness certificates, and passing mandatory emissions tests.
Insurance Requirements
- Car rental agencies must offer comprehensive insurance for the rented vehicles.
- Customers should be informed about the insurance coverage, which typically includes collision damage, third-party liability, and theft coverage.
Documentation and Driver Verification
- Customers renting cars must present valid driver’s licenses, and rental agencies must verify the documents before handing over the vehicle.
- The agency must ensure that only individuals with valid driving licenses are allowed to rent vehicles.
Adherence to Safety Standards
- Vehicles must be equipped with basic safety features (e.g., seat belts, airbags) and maintained regularly.
- The rental agreement should outline the agency’s responsibility for ensuring that the car is in safe working condition.
Monitoring of Rental Duration and Charges
- Rental agencies must track the duration of the rental period and ensure fair pricing practices as mandated by the relevant state and national laws.
- Any fines or charges incurred during the rental period should be clearly outlined in the rental agreement.
Customer Support and Dispute Resolution
- Agencies must provide proper customer support in case of issues during the rental period.
- Rental agreements should include clear terms regarding disputes, damages, and the process for resolution.

3. Terms and Conditions

Both motorcycle and car rental services in Himachal Pradesh typically include the following terms and conditions:

Rental Agreement: Customers must sign a rental agreement outlining the duration, rental charges, and responsibilities.
Security Deposit: A refundable security deposit is usually required at the time of renting.
Usage Limitations: Vehicles are to be used only within specified areas unless prior permission is obtained.

1. Rental Agreement

Signing the Agreement: Upon booking or picking up the vehicle, customers must sign a rental agreement. This agreement will specify:
- Rental Duration: The start and end dates of the rental period.
- Rental Charges: Total charges, including any additional fees such as fuel, insurance, or taxes.
- Responsibilities: The customer’s responsibilities during the rental period, including vehicle care, timely return, and proper usage.
Terms for Extension: If the rental period needs to be extended, customers must inform the rental service provider in advance and sign an updated agreement.

2. Security Deposit

Refundable Deposit: A security deposit is collected at the time of rental. The deposit amount may vary depending on the type of vehicle and rental company policies.
Conditions for Refund: The deposit is refunded upon the return of the vehicle in the same condition, minus any charges for damages or overdue fees.
Mode of Payment: The security deposit may be paid by cash, debit/credit card, or other accepted methods, and will be refunded via the same method after vehicle inspection.

3. Usage Limitations

Designated Area for Use: Typically, the rental vehicles are restricted to use within specific areas, such as Himachal Pradesh or nearby regions. The customer must:
- Stay Within Allowed Areas: Use the vehicle within the permissible areas specified by the rental service.
- Obtain Permission for Off-Limits Areas: If the customer intends to travel outside the designated area, prior permission must be obtained from the rental provider. Extra charges may apply for cross-border or interstate usage.
High Altitude and Challenging Terrain: For motorcycles and cars, some rental companies may impose limitations on usage in extremely high-altitude or challenging terrains like mountain roads.

4. Additional Terms and Conditions

Insurance: The rental service will typically provide basic insurance coverage for the vehicle, though customers may be offered an option to purchase additional coverage.
Fuel Policy: Customers are usually required to return the vehicle with the same fuel level as when it was picked up. If the vehicle is returned with less fuel, a refueling fee will apply.
Vehicle Inspection: Before renting and after returning the vehicle, both parties will inspect the vehicle for damages. The rental service provider will document the vehicle’s condition to avoid disputes.
License and Age Requirements: Renters must possess a valid driver’s license (domestic or international) and may be required to meet a minimum age, typically 21 or 25, depending on the rental company.

5. Late Returns

Overdue Charges: If the vehicle is returned late, additional charges may apply for each hour or day the vehicle is overdue.
Return Time: The return time is usually set during working hours, and customers are advised to return the vehicle on time.

4. Eligibility

To rent a vehicle, individuals must meet the following criteria:

Age: Minimum age of 21 years for motorcycles and 23 years for cars.
Driving License: A valid driving license appropriate for the vehicle category.

1. Age Requirement

Motorcycles: Renters must be at least 21 years old.
Cars: Renters must be at least 23 years old.

2. Valid Driving License

Renters must possess a valid driving license.
The license must be appropriate for the type of vehicle being rented (e.g., a motorcycle license for renting motorcycles and a car license for renting cars).
Ensure that the driving license is current and not expired.

3. Additional Documentation

Proof of Identity: Renters may be required to provide proof of identity, such as a government-issued ID or passport.
Proof of Address: Depending on the rental policy, a proof of address (e.g., utility bill, lease agreement) might also be required.

4. Deposit or Payment

Renters are typically required to pay a security deposit or full payment in advance before renting the vehicle. The deposit may be refunded after the vehicle is returned without damages.

5. Driving History (if applicable)

Some rental companies may ask for a record of your driving history to ensure that you have a safe driving record and no history of major violations or accidents.

6. Insurance

Renters must usually have the appropriate insurance coverage. This may be offered by the rental company or require the renter to provide their own insurance.

7. Rental Agreement

Before renting, individuals must sign a rental agreement outlining the terms, conditions, and responsibilities of both parties.

5. Documents Required

Renters need to provide:

Identification Proof: Aadhar card, passport, or voter ID.
Address Proof: Utility bills, rental agreement, or any government-issued document.
Driving License: Original and a photocopy.

Step 1: Identification Proof

Renters need to provide one of the following identification proofs:

Aadhar Card
Passport
Voter ID

Step 2: Address Proof

The renter must provide one of these as proof of their address:

Utility Bills (e.g., electricity, water, gas)
Rental Agreement
Any Government-Issued Document that shows the address

Step 3: Driving License

Renters must provide:

Original Driving License
Photocopy of the Driving License

6. Agreement and Exclusions

Rental Agreement: Details the responsibilities of both parties, including vehicle condition, rental period, and payment terms.
Exclusions: Typically, insurance may not cover damages due to negligence, unauthorized usage, or violation of traffic laws.

1. Rental Agreement:

The rental agreement sets the terms and conditions under which the vehicle is rented out. The following are the key components of a rental agreement:

a. Parties Involved:

Renter: The individual or entity renting the vehicle.
Owner: The company or individual providing the vehicle for rent.

b. Vehicle Condition:

The renter is responsible for inspecting the vehicle at the time of pickup.
Any pre-existing damage should be noted and documented in the agreement.
The renter is required to return the vehicle in the same condition, with the exception of normal wear and tear.

c. Rental Period:

The rental period should be clearly stated, with start and end dates/times.
A grace period for returning the vehicle may be specified (for example, an additional hour or two).
Late returns are typically subject to additional charges (e.g., hourly or daily rates).

d. Payment Terms:

The agreement should specify the rental fee, which could be calculated by hour, day, or week.
Payment method (credit card, debit card, etc.) and deposit requirements should be outlined.
Security deposits to cover potential damages may be charged and will be refunded if the vehicle is returned without damage.

e. Use of Vehicle:

The vehicle must be used only for the purposes agreed upon.
A list of authorized drivers should be provided, and additional drivers may incur extra charges.
The renter must ensure the vehicle is not driven beyond agreed geographical limits or taken to unsafe locations.

f. Fuel Policy:

The renter is responsible for fueling the vehicle and returning it with the same fuel level as when picked up.
If the vehicle is not returned with the same fuel level, additional refueling charges may apply.

2. Exclusions:

Exclusions refer to situations where the insurance coverage may not apply or where the renter might be held responsible. Here are common exclusions:

a. Negligence:

If the vehicle is damaged or involved in an accident due to the renter’s negligence (e.g., failing to maintain control, speeding, distracted driving), the insurance will not cover the damages.
Negligence could also include failing to perform required maintenance (e.g., checking tire pressure, oil levels).

b. Unauthorized Usage:

If the vehicle is driven by someone not listed as an authorized driver in the rental agreement, the insurance will likely be voided.
Usage of the vehicle for illegal activities (e.g., transporting illegal goods, engaging in criminal activities) will also invalidate coverage.

c. Violation of Traffic Laws:

Damages incurred during the violation of traffic laws (e.g., running a red light, driving under the influence of alcohol or drugs, reckless driving) are typically excluded from coverage.
Fines, tickets, and penalties resulting from traffic violations during the rental period are the responsibility of the renter.

d. Off-Road Use:

Many rental agreements exclude coverage for damages incurred during off-road driving. If the vehicle is used in areas not suitable for its design (e.g., rough terrains, beaches), it may not be covered by insurance.

e. Acts of Nature:

Insurance may exclude coverage for damages caused by natural disasters (e.g., floods, earthquakes, hurricanes) or other external factors beyond the renter’s control.

f. Damage from Accidents:

If the vehicle is involved in an accident but the renter fails to notify authorities or the rental company immediately, the insurance may not apply.

3. Liability:

The renter may be held liable for any damage or loss to the vehicle during the rental period, especially in situations where exclusions apply.
If the renter fails to return the vehicle as agreed or damages it beyond a certain threshold, they may be required to pay for repairs or replacement.

4. Insurance and Coverage Options:

The rental company may offer different levels of insurance coverage (e.g., basic, full coverage, or third-party insurance).
Additional coverage options, such as collision damage waiver (CDW) or personal accident insurance (PAI), might be offered to the renter at an additional cost.
The renter can often choose to waive certain insurance options if they have coverage through other means (e.g., personal car insurance or credit card benefits).

7. Financial Aspects

Aspect	Responsibility
Fuel Cost	Generally borne by the renter. Vehicles are provided with a full tank and should be returned likewise.
Interstate Taxes	If traveling outside Himachal Pradesh, the renter is responsible for any interstate taxes or permits required.
Parking Charges	Paid by the renter during the rental period.
Toll Taxes	The renter is liable for any tolls encountered during their journey.

1. Fuel Cost

Responsibility: Renter
Details: The vehicle is provided with a full tank of fuel at the time of rental.
Expectation: The renter should ensure the vehicle is returned with a full tank of fuel. If the fuel level is lower than when it was rented, the renter may incur a charge for refueling.

2. Interstate Taxes

Responsibility: Renter (if traveling outside Himachal Pradesh)
Details: When traveling outside Himachal Pradesh, renters need to pay any applicable taxes or permits required for interstate travel.
Expectation: Renters should be aware of the relevant charges and permits required for the journey and ensure they are covered before crossing state lines.

3. Parking Charges

Responsibility: Renter
Details: Any parking fees or charges incurred during the rental period are the responsibility of the renter.
Expectation: Renters should plan to pay for parking in advance or as they go, especially in areas with high traffic or limited parking options.

4. Toll Taxes

Responsibility: Renter
Details: The renter is liable for any tolls encountered during their travel.
Expectation: Renters should be aware of toll routes and have the means to pay toll taxes when passing through toll booths.

8. Inclusions

Standard rental packages may include:

Mechanical Warranty: Coverage for mechanical failures not caused by the renter.
One Helmet: For motorcycle rentals, one helmet is typically provided; additional helmets may incur extra charges.

1. Mechanical Warranty

What it is: A mechanical warranty covers any mechanical failures that are not caused by the renter.
What it includes: If your rented vehicle (bike/car) experiences issues such as engine malfunctions or other technical failures during the rental period, the warranty typically covers repair costs.
What it doesn’t cover: Damage caused by improper use, accidents, or wear and tear due to negligence by the renter (e.g., engine overheating from poor maintenance or not following manufacturer guidelines).
What to keep in mind:
- The warranty might not cover damage to parts caused by accidents.
- The renter is usually required to follow all safety and maintenance instructions to maintain warranty validity.
- There could be exclusions for damages caused by driving under the influence or driving recklessly.

2. One Helmet (For Motorcycle Rentals)

What it is: This refers to the provision of one helmet with each motorcycle rental.
What’s Included:
- A single helmet will be included with your motorcycle rental, ensuring safety during your ride.
Additional Charges for Extra Helmets:
- If you require more than one helmet (for example, for a passenger), there may be an extra charge.
- Charges can vary based on the rental company.
What to keep in mind:
- Always check the condition of the helmet before use for safety.
- The helmet provided may be subject to availability, and it’s a good idea to ask in advance if you need a second one.

3. Optional Add-Ons or Charges

GPS Devices, Insurance, and Other Accessories: Depending on the rental company, you may be able to add extra services like GPS devices or insurance for an additional cost.
Fuel and Mileage: Some rentals may include a certain amount of fuel or mileage, while others may offer these as add-ons.

9. Returning the Vehicle

Vehicles should be returned:

On Time: As per the agreed-upon return time to avoid late fees.
In Original Condition: Without any damages beyond normal wear and tear.

1. Check Return Time

Confirm the Return Time: Make sure you return the vehicle at the agreed-upon time to avoid late fees. If you’re unsure about the return time, refer to your rental agreement or contact the rental service.
Plan Ahead: Allow extra time for any unforeseen delays (traffic, detours, etc.) to ensure timely return.

2. Inspect the Vehicle for Damage

Review the Vehicle’s Condition: Before returning the vehicle, thoroughly inspect it for any damages beyond normal wear and tear.
Check Common Areas: Look for scratches, dents, or any issues with tires, windows, mirrors, seats, and the interior.
Clean the Vehicle: It’s a good idea to clean the vehicle before returning it, even if it’s just a quick vacuum or wipe down to avoid cleaning fees.

3. Fuel Level

Refill the Fuel: If the rental agreement requires the vehicle to be returned with the same fuel level as when it was rented, make sure to fill up the tank to avoid additional fuel charges.

4. Return the Keys

Prepare the Keys: Make sure to return all keys (spare keys, if provided) to the rental company.
Use the Designated Drop-off Location: Some rental companies have specific drop-off locations for the keys (like a box), so make sure you know where it is.

5. Check for Personal Items

Remove All Belongings: Check the interior thoroughly for any personal belongings, such as bags, chargers, or documents, to avoid leaving anything behind.
Check the Trunk and Glove Compartment: Don’t forget to check the trunk, glove compartment, and any other compartments for your items.

6. Final Inspection

Meet with the Rental Representative: If possible, arrange to meet with a rental company representative to go through the final inspection of the vehicle.
Document the Condition: Take photos of the vehicle at the time of return as evidence that the vehicle was returned in good condition.

7. Complete the Return Process

Sign the Return Form: If required, sign any documents confirming the vehicle’s return and its condition.
Ensure No Pending Payments: Make sure all fees (fuel, cleaning, or late charges) are cleared during the return process.

8. Confirm Return

Obtain Confirmation: Get confirmation from the rental service that the vehicle has been returned in good condition and on time.

10. Payment Procedure

Modes Accepted: Cash, credit/debit cards, or digital wallets.
GST Rate: As per Circular No. 177/09/2022-GST, the hiring of vehicles may attract GST. The applicable rate should be confirmed with the rental agency.

1. Payment Modes Accepted

Cash: You can make a payment in cash for the rental vehicle.
Credit/Debit Cards: Payments can also be made through your credit or debit card (Visa, MasterCard, etc.).
Digital Wallets: Digital payment options like Paytm, Google Pay, or PhonePe are accepted for convenience.

2. GST Application

GST on Vehicle Rentals: As per Circular No. 177/09/2022-GST, the hiring of vehicles may be subject to Goods and Services Tax (GST).
GST Rate Confirmation: The specific GST rate for vehicle rentals should be confirmed with the rental agency, as it can vary based on the service and vehicle type.
- For GST on rentals, it’s generally 5% without input tax credit and 18% with input tax credit, but the final rate depends on the specifics of the rental service.

3. Invoice and Billing

When you make a payment, ensure that you receive an invoice detailing:
- The total amount payable
- GST amount (if applicable)
- Mode of payment used
- Vehicle details (model, rental duration, etc.)
- Any other applicable fees or charges

4. Payment Confirmation

After completing the payment via any accepted mode, ensure you receive confirmation from the rental agency (via receipt, email, or SMS).
If paying by credit/debit card or wallet, the agency will usually send an electronic confirmation with the transaction details.

5. Return/Refund Process (if applicable)

In case of cancellations or refunds, the GST component may also be adjusted based on the policies of the rental agency. Confirm the terms with them to understand how the GST is handled in such cases.

6. Important Notes

Always verify the GST applicability and the exact rate for your specific vehicle rental.
Retain a copy of the invoice and payment receipt for your records, as this will be important for future reference or audits.

11. Renter’s Liability

Renters are liable for:

Traffic Violations: Any fines or penalties incurred during the rental period.
Damages: Costs for repairs due to accidents or misuse not covered by insurance.

1. Traffic Violations

What it covers: Renters are responsible for any fines, penalties, or violations that occur while the vehicle is under their rental.
Examples: Speeding tickets, parking violations, toll fines, red light tickets, etc.
How it works:
1. Incurred fines: If you violate any traffic laws during the rental period, you will be held liable for paying any resulting fines or penalties.
2. Notification: The rental company will inform you about any fines incurred and may charge you for them if they receive the violation notice after the rental period.
3. Payment responsibility: You will need to pay these fines directly to the issuing authority or reimburse the rental company if they handle the payment for you.

2. Damages

What it covers: Renters are responsible for the cost of repairs due to damage caused by accidents or misuse of the rented vehicle. This could include damage from crashes, scratches, dents, etc.
Examples:
- Accidents resulting in body damage to the vehicle.
- Damages from misuse such as driving off-road, hitting curbs, or any other negligent actions.
How it works:
1. Insurance coverage: Rental companies typically offer insurance (optional or included) to cover damages during the rental period. However, if you don’t opt for additional insurance, or the damages are beyond the covered amount, you will be responsible for paying out-of-pocket.
2. Assessment of damages: After the vehicle is returned, the company will inspect it for any damages. If any are found, they will assess the repair cost.
3. Reimbursement process: The rental company may charge you directly or through the credit card used for the booking, depending on the rental agreement and the damage amount.
4. Liability for misuse: If the vehicle was misused (e.g., driving on unapproved roads, negligence, or failure to maintain the vehicle), you will be fully responsible for the costs related to repairs.

3. Insurance Options

Optional Insurance: Some rental companies offer additional insurance options (Collision Damage Waiver, Theft Protection, Personal Accident Insurance) that can reduce or cover renter’s liability in case of damages or theft.
Personal Insurance: If you have personal car insurance, check whether it extends coverage to rental vehicles.
Credit Card Insurance: Some credit cards provide insurance coverage for rental vehicles if you use them to pay for the rental.

4. Exemptions

Inclusions in Insurance: If you choose the right insurance package, certain types of damage (like mechanical failures not caused by misuse) may be covered.
Liability Limitations: Some contracts may limit the amount renters have to pay in case of severe damage or an accident, especially if optional insurance was taken.

12. Vehicle Repair and Maintenance

Routine Maintenance: Handled by the rental agency.
Breakdowns: Renters should contact the agency immediately for assistance.

1. Routine Maintenance: Handled by the Rental Agency

Scheduled Inspections: The rental agency will schedule regular maintenance checks based on the vehicle’s age, mileage, and manufacturer’s recommendations.
Oil Changes: The agency ensures the vehicle receives timely oil changes as part of routine maintenance.
Tire Care: Regular tire checks and replacements, ensuring proper inflation and tread depth.
Fluid Checks: Routine checks on brake fluid, transmission fluid, coolant, and other essential fluids.
Brake Inspections: The agency will regularly inspect the brakes for wear and tear.
Wiper Blades & Lights: Agency handles replacement of windshield wiper blades and ensures all lights are working properly.

2. Breakdowns: Renters Should Contact the Agency Immediately

Contact Information: Renters will receive a 24/7 helpline or customer service number to report breakdowns.
Location Details: Renters should provide precise location details to assist in quick dispatch of help.
Basic Troubleshooting: The agency may offer troubleshooting tips over the phone, such as how to jump-start the car or check tire pressure.
Roadside Assistance: If the issue cannot be fixed quickly, the rental agency will arrange for roadside assistance or towing to the nearest service center.
Replacement Vehicle: If the breakdown is significant, the agency will provide a replacement vehicle to ensure the renter’s plans are not disrupted.

3. Insurance for Repairs

Insurance Coverage: The renter is responsible for paying the deductible or any charges not covered by insurance if the breakdown is due to negligence (e.g., driving under improper conditions).
Rental Terms: The rental agreement should clearly state the liability for repairs and maintenance, including who covers the costs of repairs during rental.

4. Post-Repair Inspection

Agency’s Inspection: After a repair or maintenance, the rental agency will inspect the vehicle to ensure it is in optimal condition before renting it out again.
Documentation: Renters may be provided with documentation of the repairs, including any part replacements or adjustments made to the vehicle.

13. Exclusions

Insurance and warranties typically do not cover:

Unauthorized Usage: Using the vehicle for racing, towing, or illegal activities.
Negligence: Damages arising from careless actions or violations of the rental agreement.

1. Unauthorized Usage

Racing:
- The vehicle cannot be used in any form of racing, including organized races, speed trials, or off-road competitions. If the vehicle is used for racing, any damage that occurs will not be covered under insurance or warranty.
Towing:
- The vehicle cannot be used to tow other vehicles or objects, unless explicitly allowed by the rental agreement. If used for towing without authorization, insurance or warranty will not cover damages.
Illegal Activities:
- Any use of the vehicle for illegal activities (e.g., transporting illegal substances, engaging in criminal acts) automatically voids any insurance or warranty coverage. If damages occur while using the vehicle for such activities, the renter will be fully liable.

2. Negligence

Careless Actions:
- If damages occur as a result of careless driving (e.g., leaving the vehicle unlocked, failing to secure it properly, or disregarding safety measures), the insurance or warranty will not cover the costs. This also includes situations where the renter fails to take reasonable precautions to avoid damage.
Violations of Rental Agreement:
- If the renter violates any part of the rental agreement (e.g., exceeding mileage limits, driving outside of the allowed geographic region, or failing to follow maintenance guidelines), damages resulting from these actions will not be covered under the insurance or warranty.
Driving Under the Influence:
- If the renter drives under the influence of alcohol or drugs (legal or illegal), any resulting damages to the vehicle will not be covered under insurance or warranty.

3. Additional Exclusions to Keep in Mind

Mechanical Failures:
- Typically, mechanical failures (e.g., engine issues, flat tires) are covered unless they result from the renter’s negligence or improper usage.
Third-Party Damage:
- If the vehicle is involved in an accident where another party is at fault, the insurance or warranty may not cover the costs unless the renter has opted for additional coverage (e.g., liability insurance).
Natural Disasters:
- Insurance or warranties often do not cover damage resulting from natural disasters such as floods, earthquakes, or hurricanes, unless specified in the terms.