What is a car rental franchise?
- CatCar
- What is a car rental franchise?
Recently,
car rental has become increasingly popular. Large companies provide such a service in many countries around the world and have hundreds and even thousands of vehicles. The franchise ensures the normal functioning of this business. Without it, successful communication between the lessor and the lessee is impossible. So what is a car rental franchise and how does it work? Let's figure it out.
Car rental franchise - what is it?
This is a certain amount of money that the lessee pays when receiving the car. It is needed to cover expenses in the event of an accident. If you rented a vehicle and got into a minor accident in which the property of the company was damaged, then its repair will be made at the expense of the funds you paid. These funds are the car rental franchise. If you return the car safe and sound, you have the right to return the money you left as a deposit. What does a deductible mean when renting a car and does it cover all accidents? This deposit is not used to cover every accident. In each agreement, the lessor clearly states in which cases repairs are made at the expense of the funds you paid. Here is an example:
- drunk driving followed by an accident;
- theft of a car due to the driver's negligence (forgot to close the doors or left the keys in the car);
- gross violation of traffic rules.
The company also states the conditions under which damage to the vehicle is covered by the insurance company. Decent customers who comply with the terms of the deal and return the property intact get their deposit back.
What is a deductible when renting a car?
Some vehicle rental companies provide their customers with equipment without charging an insurance premium. When signing such an agreement, you do not lose a decent amount of money in the event of an accident. But the rental cost will be higher when compared with the first version of the agreement (with a deposit). Regardless of the terms of the deal, when receiving a car, you need to be aware of the possible dangers and take measures to drive as safely as possible.
