Car rental and Insurance
In addition to basic vehicle rental, car rental agencies usually also offer additional products such as insurance, global positioning system (GPS) navigation systems, entertainment systems, cellphones, portable WiFi and child safety seats.
History
One example of cars offered for rental began in 1906. The German company Sixt was founded in 1912 under the name Sixt Autofahrten und Selbstfahrer (Sixt Car Cruises and Self Drivers). Joe Saunders of Omaha, Nebraska initially started by borrowing the Ford Model T in 1916, but in 1917, the Ford Livery company was renting out 18 Model Ts for 10 cents per mile. The company name becomes Saunders Drive-It-Yourself System and then Saunders System. In 1926, Saunders expanded to 56 cities. The Saunders Company was bought by Avis in 1955.
Saunders' initial competitor was Walter L. Jacobs, who owned a Chicago-based Rent-a-Car opened in 1918 with twelve Ford Model T. The company was bought by John Hertz in 1923.
In the UK, car rentals began with Godfrey Davis, founded in 1920, and bought by Europcar in 1981.
The sector expanded rapidly in the US; in 1926, the American Driveurself Association gathered more than 1200 delegates in Chicago.
Growth in the aftermath of the Second World War led to the establishment of several internationally renowned companies, including National Car Rental (1947), Europcar (1949), Enterprise Rent-A-Car (1957), Thrifty Rent A Car (1958), and Budget Rent a Car (1958).
Business Model
Car Rental Center at George Bush Intercontinental Airport
Car rental companies operate by buying or renting a number of fleet vehicles and renting to customers for a fee. Rental fleets can be structured in a variety of ways - they can be owned directly (this is known as a 'risk vehicle' because car rental operators take risks on how many vehicles will be sold when removed from service), they can be rented, or they can be owned under the program guaranteed repurchases arranged directly through the factory or factory finance branch (this is known as a 'repurchase vehicle' because the manufacturer sets out the exact price of the original sale and repurchases at the end of a certain period).
In the UK, registering car rentals can be hidden using unknown initials or subsidiaries, which can increase resale prices through manufacturers or third-party dealers. In North America, it is very common to see rental companies with their own used car dealers where used stock leases are sold directly to the public. Or, auctions are often used in the United States and with the advent of digital platforms, more and more rental cars are selling vehicles directly to new and used car dealers through the auction channel.
Types of vehicles
Car rental for Kia Rio Thrifty
Most car rental offices offer a variety of vehicle sizes to suit various budgets and space requirements and some also offer special vehicles that are suitable for their location such as convertibles, prestige models, hybrid / electric vehicles, or SUVs and passenger vans. At major airports or in big cities, some independent car rental agencies offer luxury vehicles for rent. Some companies specifically offer older vehicles at lower prices
To enable a uniform classification and easy comparison of car rental prices, the Association of Car Rental Systems and Industry Standards (ACRISS) has developed an ACRISS Car Classification Code coding system. This explains the size, number of doors, transmission type (manual / automatic), and whether the air-conditioned car is coded into four letters. The first letter in the Acriss Code represents the general classification of the vehicle (eg Mini, Economy, Compact, etc.). The second letter determines the variant of the vehicle offered (e.g. 4 Door, Estate, Convertible, SUV, etc.). The third letter is generally used to determine the type of transmission, although it can also be used to describe how many wheels drive the vehicle, and the fourth letter describes the type of fuel and whether the vehicle has air conditioning or not.
Additional classification based on seat number and baggage volume is also established by the Belgian Rent a Car association to provide an integrated system for assessing the type of car in the online reservation system and the airline's global distribution system.
Rental Requirements
Car rental is subject to many conditions that vary from country to country and from one company to another. In general the vehicle must be returned in the same condition as the rental place, and often cannot exceed the mileage limit, otherwise additional fees may apply.
For insurance reasons, some companies have a minimum and / or maximum rental age. In some cases, the minimum age for rental can be as high as 25, even in countries where the minimum legal age for holding a SIM can be lower, for example: 14,15, 16 or 17 in the United States. It is not uncommon for a person to incur additional young driver fees for drivers under the age of 25.
In all cases, a valid driving license is required to rent a vehicle, and some countries require an International Driving Permit (IDP).
The majority of companies require the use of credit cards to charge extra fees where defects are found in returned cars or toll roads, with regard to driving, or lost fuel. In lieu of credit cards, some companies require large cash deposits. Some companies allow debit cards for deposits, usually with proof of round trip tickets, e.g. airplane, bus or train tickets.
Insurance / relief
Although often not explicitly stated, US car rental companies are required by the laws of their respective states to provide minimum liability coverage, except in California and Arizona, where drivers are fully responsible. This includes fees to third parties in the event of an accident. In most states, driving a car without coverage is illegal. Car rental companies maintain liability insurance for their vehicles; however, some companies will charge for this, if you do not provide your own insurance. For example, in Maryland, the minimum coverage is $ 20,000 for bodily injury and $ 15,000 for property damage.
Usually, when renting a car, various forms of additional insurance and / or damage compensation are offered as an optional extra with additional fees. There are several types of coverage:
[Damage_waiver Loss Damage Waiver] (LDW) - covers the cost of damage to the rental vehicle, up to the full value of the vehicle, if an accident occurs. Usually LDW covers 100% of the cost without any additional costs that can be deducted. Note that LDW / CDW coverage is not insurance and does not offer the same product coverage as the damage insurance policy.
Damage_waiver Collision Damage Waiver] (CDW) - Generally covers the cost of damage due to a moving accident. As the name suggests, non-collision based damage is often not covered. In many cases, if an accident occurs, costs or reductions apply.
Additional Benefit Insurance (SLI) - a product that is often sold in the US that provides protection in the event of an accident that causes bodily injury or property damage to people other than tenants and passengers.
Personal Accident Insurance (PAI) - covers medical expenses and accidental death for tenants and passengers in the event of an accident during rental.
Personal Effects Coverage (PEC) - insuring the risk of loss or damage to the tenants' personal belongings (and sometimes members of the tenant's family while traveling with the tenant) during the rental period.
Excess Insurance - Disregard damage due to collisions, theft and third party coverage is often included in the price of car rental in Europe, Africa and Australasia. There is almost always an advantage in this (also referred to as Super CDW, Non-Waiver, or Deductible), which involves the amount of money that the customer must pay in case of damage, to prevent the driver from being
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