Do you want to lend a car to a friend, or do you need a vehicle for a weekend or longer? At first glance, a trivial situation, right? But a car rental contract carries risks that can cost you a lot of money and nerves.
In today’s article, we will reveal the most common mistakes that our clients forget about when signing the contract.
A friend or acquaintance asks you to rent a car. You don’t see a problem with this because you logically think that if he commits a traffic offence, he will be responsible for the consequences. But the reality is different. This is mainly based on the Road Traffic Act, which says that it is your duty to ensure that when using a vehicle on a road, the driver’s duties and the rules of the road are observed.
So if your friend breaks the speed limit in the village while driving your car, you will be liable for the offence and may be fined. It always depends on the particular circumstances and, of course, especially on whether your friend admits guilt. If he or she does not, you will be the only one who will pay and be held liable, or you will have to prove someone else’s fault.
An available attorney advises, “It’ s not for nothing that they say you don’t rent cars. If you’re looking to rip a thorn out of a friend or acquaintance’s side, consider the potential risks or avoid them with a contract. You can find countless examples of car rental contracts on the internet. However, because they are anonymous, there is no guarantee that they comply with the new Civil Code, and even if they do, it is not in their power to take your specific case into account. The contract for the use of the vehicle should therefore always be checked by a lawyer who will straighten out any legal inaccuracies.”
We will check the car rental contract template or draw up a completely new contract for you, which will contain all the important details. This is how you reduce the risk of renting a car to a minimum. We understand that these things are rushed, so you can sign within 48 hours.
I want to rent a car without stress
Given the existence of compulsory liability insurance, it might seem that the operator is protected against any liability that might arise if his car causes an accident (whoever was driving it).
However, the crucial exception is non-pecuniary damage. This arises from interference with a person’s personal rights (in particular the right to human dignity, privacy and family life). This is the case of relatives of the victim of a road traffic accident who are suffering from long-term psychological problems or serious injuries that completely change their life situation. A claim may then be brought for appropriate compensation in the form of financial compensation.
You are therefore liable for non-pecuniary damage even if you do not drive the car yourself. Liability is not included in the liability of the insured under the compulsory liability insurance (unless stated in the contract), so the injured party can claim the full amount from you. This can be in the hundreds of thousands or even millions of crowns.
Tip: Non-pecuniary damage is not included in the insurance even if it is caused by the operator as driver.
Nowadays it is very easy to rent a car for a short period of time. Logically, renting a car carries certain risks. To be aware of these, you should be interested in how the car rental contract deals with unusual situations – most often crashes, damage or theft of the vehicle. Don’t skip the percentage of the deductible rate – most car rental companies have a 10% deductible on collision insurance. Thus, a loss of 100,000 crowns may be claimed despite the insurance cover of 10,000 crowns.
Tip: Make sure you check your contract to see if you are covered by a deductible even if you are not at fault for the accident.
An available solicitor advises, “ The car rental contract will usually specify who can drive the rental car. The basic price usually includes only one parent and the others are at an extra cost. Should an accident be caused by a driver not named in the contract, it is your responsibility to pay all costs.”
It is absolutely standard in a rental contract to return the car in the same condition as when you got it. So before you drive off with the car, take pictures of it from all sides and look for any damage, including interior tech.
Tip: We recommend that you also test the functionality of all lights, wipers, windscreen washers and all door and window closers.
If you find any defects, have them noted (by hand) on the handover report and ask the rental company to sign it. This avoids guesswork about who caused the damage.
There has been an accident with the rental car
It’s standard for car rental companies to have collision insurance, but even here you need to be careful what you sign in the rental agreement. We recommend that in the event of any accident, you call the rental company to find out what to do. They will probably ask you to call the police and hand over the report issued by them to the rental company.
If you do not do so, you risk being charged up to 100% deductible by the rental company. This is because if properly documented and reported, they cannot claim on the collision insurance.
Tip: The number of road accidents is increasing year by year and although none of us wants it to happen, the likelihood that one day it will happen to us is not entirely remote. In any case, it is good to be prepared and know how to behave in such a situation. In addition to the usual legal advice, today we will add some purely practical ones.
The terms and conditions do not differ much from a domestic rental. Don’t sign a contract in a foreign language in a hurry just because you’ve seen the seaside, and make sure you understand all the terms and conditions before renting a car.
In addition to the fuel policy and mileage restrictions, check the car rental contract for territorial restrictions. Crossing borders is prohibited by some car rental companies, while others allow it for a fee.
An available solicitor advises, “Remember that if you drive out of the border and something happens to the car, the damage is not covered by insurance and you have to pay for it in full.”
Some rental companies add a ban on ferry use or driving on unpaved or gravel roads to the rental contract. So be sure you have a perfect overview of all the restrictions before signing , for which you would unnecessarily pay hefty fines.
Tip: Don’t be surprised if some countries require an international driving licence. without it, they won’t give you a rental vehicle. You can find out more about it on the Ministry of Transport website.
Ask the rental company for written confirmation from the responsible person that the car has been returned in good condition. Then keep the document with your important documents in case the rental company later claims there are defects in the car.
When renting a car abroad, you often find that you return it outside opening hours. With this method, be sure to take pictures of the car (both exterior and interior details) and make sure you return the car as instructed in the car rental agreement before dropping the keys in the mailbox.
With leasing, the most important information is that the car is owned by the seller until the buyer pays all the instalments. Leasing is thus based on a rental agreement. There are also two types of leases associated with this:
An available attorney advises, “Beware of special offers from leasing companies. We often see promotions where the leasing company knocks down one of the components of the offer (interest, insurance or purchase price) to zero or offers some kind of benefit. But when you compare the total sum of the payments and consider the overall offer (insurance, fees, residual value) comprehensively, you may find that you are actually overpaying.”
You are not the owner of the car, only the operator, and this implies obligations. When you take over, you will be given all the information on how to behave in the event of an accident or theft, or what damage to the car is accepted and what is not. So read the vehicle use agreement carefully so that you are not unpleasantly surprised when you return it.
Those who rent a car often make mistakes in the mileage allowed. This is usually between 15,000 and 25,000 km per year. If you exceed this limit, you will end up paying a mileage penalty. Most companies will tolerate hundreds of extra kilometres, but if you run around 1,000 km over the limit, you will face a penalty of several crowns per kilometre.
When a car is stolen , the lease agreement is settled early. For the answer to what you are facing, look for the lease settlement items that are listed in the vehicle’s usage agreement.
Perhaps the most significant item in this case is the collision insurance company’s claim for the theft of the vehicle. If it seems downright low, get an expert opinion on the vehicle’s usual value. In case the expert concludes that the usual price is higher than the one set by the insurance company, you will be entitled to additional compensation. At each step, check that the leasing company is following the contract.
From 1 January 2024, there are some changes that may affect the purchase of a leased car. Here is a summary of them:
- The maximum amount that can be tax deductible for the purchase of an M1 passenger car has been limited to CZK 2,000,000. This limit applies to both the direct purchase of the vehicle and to operating or finance leases.
- For the acquisition of passenger cars, the VAT deductibility is limited to a maximum of CZK 420 000. This limitation corresponds to a vehicle with a purchase price of CZK 2 000 000 excluding VAT.
Whichever way you approach a motor vehicle lease agreement, whichever angle we have outlined today, we will review it and adjust it to avoid risks. We’ll handle everything online, at a predetermined price and within 48 hours.
Renting, borrowing and leasing a car are three different ways to secure a vehicle without having to buy it outright. Each option has its own specifics – with a lease, the car is returned at the end of the contract, with a lease it can be bought back at the end of the contract, and a car loan is a classic loan where the car is yours from the start. When choosing, it is important to consider not only the financial aspect, but also the legal terms of the contract, liability for damages or early termination options. A properly set up contract will save you the hassle and help avoid disputes. If you’re not sure what’s best for you or need to check the contract, it’s worth consulting a professional.
Our team of experienced attorneys will help you solve any legal issue. Within 24 hours we’ll evaluate your situation and suggest a step-by-step solution, including all costs. The price for this proposal is only CZK 690, and this is refunded to you when you order service from us.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
In person and online. Just choose the appropriate service or opt for an independent consultation when you are unsure.
