How can I charge the renter for damages or accidents?
Despite everyone’s best efforts we all understand that occasionally damages will occur as part of running a vehicle rental business:
If this happens we expect that your insurance will cover damages, and you will provide the renter with temporary transportation. Note: if it’s their fault, you are well within your rights to include the cost of getting them transportation into what you charge them for the “Max Damage Fee”.
To ensure this process is smooth we recommend the following steps:
🆔 Have comprehensive rental insurance
- Review the terms and conditions of your insurance policy to understand what documentation is required to make a claim.
- If you are unsure about the process, contact your insurance provider or agent for guidance.
- If you don’t have PSV insurance, checkout the insurance requirements help article where we link a number of providers.
💵 Charging renters 20-60% of your excess amount
- We call the amount that a renter is responsible for the “Max Damage Fee”, which they are obligated to pay you in the event that damage was their fault.
- We recommend charging renters 20-60% of your insurance policy excess amount
- This is aimed at creating renter accountability
- This will ensure a renters that causes a crash has consequences
- Lower excesses generally lead to more bookings, but also mean more risk for you
💸 Collecting Payment
- For our initial launch, you’ll be responsible for collecting damage payments directly from a renter
- If you have trouble collecting payment, and need help, reach out to customer support
Note:
- The excess amount is the amount you are expected to pay before your insurance kicks in.
- During registration, we will ask you what the excess amount on your insurance policy is and what is the maximum amount you would charge a renter in case of an accident.
- We recommend that the maximum amount be 50% of the excess amount for your insurance policy because:
- Both the host and renter share the risk for the rental as is the nature of the business.
- The value provided as the maximum damage amount would then be the maximum a renter would pay incase of damage or an accident