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Car Rental Agreement Template

Clearly outline vehicle rental terms and responsibilities with this Car Rental Agreement Template.

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Car Rental Agreement Template

Car Rental Agreement Template

This Car Rental Agreement ("Agreement") is entered into on [Date], by and between:

Car Owner / Rental Company: [Full Name / Company Name]
Address: [Address]
Email: [Email Address]
Phone: [Phone Number]

and

Renter: [Full Name]
Driver’s License Number: [License Number]
License State/Country: [Jurisdiction]
Address: [Renter Address]
Phone: [Phone Number]

Together referred to as the "Parties."


1. Vehicle Information

Make: [e.g., Toyota]
Model: [e.g., Corolla]
Year: [e.g., 2021]
Color: [e.g., Black]
License Plate: [Number]
VIN (if applicable): [Number]
Condition: ☐ Good ☐ Excellent ☐ As Noted in Inspection Sheet


2. Rental Period

Start Date and Time: [Start Date and Time]
End Date and Time: [End Date and Time]
☐ Early return does not result in a refund unless agreed in writing


3. Rental Fee and Payment

Total rental cost: $[Amount]
Deposit: $[Amount] (☐ refundable upon vehicle return in same condition)
Payment method: [e.g., Bank transfer, Credit card, Cash]
Late return fee: $[Amount] per hour / day beyond scheduled return


4. Mileage and Fuel Policy

Included mileage: [e.g., 200 km/day]
Extra mileage charge: $[Amount] per km/mile
Fuel:
☐ Must be returned with same fuel level
☐ Fuel charge of $[Amount] if not refueled


5. Insurance and Liability

☐ Insurance is included in the rental
☐ Renter provides own insurance (proof required)
☐ Renter is liable for all damages not covered by insurance

Renter assumes full responsibility for all fines, violations, and damage caused during the rental period.


6. Vehicle Use Restrictions

The Renter agrees not to:

  • Use the vehicle for illegal activities

  • Exceed legal speed limits

  • Allow unlisted drivers to operate the vehicle

  • Drive under the influence of drugs or alcohol

  • Use the vehicle outside of [Geographic Limit / Country] without permission


7. Vehicle Condition and Inspection

The vehicle will be inspected by both Parties before and after the rental period.
Photos and/or checklist may be attached as Appendix A.


8. Breakdown and Accidents

In case of mechanical issues or accidents, the Renter must:

  • Notify the Owner immediately

  • Refrain from unauthorized repairs

  • Complete any required accident reports


9. Termination

This Agreement may be terminated early by mutual written consent or due to violation of terms.
In such cases, additional charges may apply.


10. Governing Law

This Agreement shall be governed by the laws of [State/Country].


11. Entire Agreement

This document contains the full agreement between the Parties. Any amendments must be in writing and signed by both.

IN WITNESS WHEREOF, the Parties have executed this Car Rental Agreement as of the date first written above.


Owner / Company Signature
Name:
Date:


Renter Signature
Name:
Date:


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Car Rental Agreement Template

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Car Rental Agreement Template

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For quick answers, scroll below to see the FAQ.

CAR RENTAL AGREEMENT FAQ


What is a car rental agreement?

A car rental agreement is a legally binding document that sets out the terms and conditions under which a vehicle is rented. It includes key details such as the rental period, payment terms, insurance coverage, mileage limits, and acceptable uses of the vehicle.


Why do you need a car rental agreement?

It provides legal protection for both the owner and the renter by clearly defining responsibilities, payment arrangements, insurance obligations, and usage rules. Having the terms in writing helps prevent disputes and minimizes the risk of liability issues.


When should you use a car rental agreement?

You should use a car rental agreement whenever a vehicle is rented, whether for short-term personal use, business travel, or commercial purposes. It ensures both parties understand and agree to the conditions before the rental begins.


How to write a car rental agreement?

Include the vehicle’s identifying details, the rental period, cost and payment schedule, mileage restrictions, insurance terms, and the renter’s responsibilities for damage or maintenance. Make sure both parties sign the agreement to make it enforceable.


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