When renting a vehicle, understanding the potential costs and hidden charges is crucial to avoid unexpected expenses. Here’s a detailed breakdown to help you prepare:
Standard Rental Costs
• Base Rate: The daily or hourly cost of renting the vehicle, usually determined by the type of vehicle and duration of the rental.
• Taxes and GST: Rentals in India are subject to Goods and Services Tax (GST), typically 18%.
Additional or Hidden Charges
Insurance Costs:
• Basic Insurance: Most rental agreements include third-party liability insurance, but damage to the rental vehicle may not be fully covered.
• Collision Damage Waiver (CDW): Optional coverage that limits your financial liability for vehicle damages.
• Personal Accident Insurance: Additional insurance for injury-related expenses during the rental period.
Mileage Limits:
• Extra Kilometers: Some rentals include a mileage cap (e.g., 250 km/day), and exceeding this limit incurs charges per extra kilometer (₹5–₹20/km depending on the vehicle type).
Fuel Policy:
• Fuel Charges: If you return the vehicle with less fuel than when you picked it up, the company may charge for refueling at a higher rate.
• Prepaid Fuel Plans: Some companies offer prepaid fuel packages, which may not be cost-effective if unused fuel is non-refundable.
Late Returns:
• Hourly Late Fees: If you return the vehicle after the agreed time, you may be charged hourly or a full day’s rental as a penalty.
• Grace Period: Some companies allow a grace period (e.g., 30 minutes) before late charges apply.
Additional Equipment:
• Add-Ons: Items like GPS devices, child seats, or an extra helmet for bike rentals often come with an additional daily fee.
• Toll Charges: If the vehicle is equipped with a FASTag, the company may pass toll fees to you.
Security Deposit:
• Refundable Deposit: A deposit is required to cover damages, fines, or violations during the rental. Refunds may take time after the vehicle is returned.
Damage or Cleaning Fees:
• Damage Fees: Any damage not covered by insurance may result in charges, often higher than market repair costs.
• Cleaning Fees: Excessive dirt or vehicle interior damage might lead to cleaning or detailing fees.
Inter-City or One-Way Rentals:
• Drop-Off Charges: Returning the vehicle to a different city or location typically incurs additional fees.
Tips to Avoid Hidden Costs
• Read the Agreement Thoroughly: Review all terms, especially regarding mileage, insurance, and damage liability.
• Inspect the Vehicle: Document pre-existing damages with photos