Rental 102

In my car rental days, I developed a simple training program for new trainees. Car rental was, in those days, an industry that recruited heavily from people straight out of college and looked first for personality traits, instead of specific experience. Just thought I'd put that on here - in case any car rental people find this blog (about 30-40 per month wind up here from Google searches), or in case I have a hard time remembering later!

Overall

Greet customer and determine if they have a reservation.

Select car.

Establish qualifications.

Vehicle inspection / Sell optional products.

Return of vehicle.


ESTABLISH QUALIFICATIONS
There are three main qualifications to rent a car:

1. Identification
2. Form of payment
3. Insurance coverage

IDENTIFICATION
A person must have a valid driver's license in Tennessee to rent a car (state statute). 
The Rental Agreement requires personal identifying information such as:

• name
• address
• contact phone number
• DL number & expiration date
• Date of Birth

The Rental Agreement needs alternative information if a third-party is paying all or some of the rental:

• Repair shop
• Name of the third-party that will be paying all or a portion of the rental bill.
• Amount the third-party is going to pay
• Claim number (insurance replacement), RO number (dealer replacement), etc.
• Type of car renter is having repaired (not required, but will help)

If a customer will not be putting down a credit card as security for incidentals, then a cash-qualification form is required (see "form of payment" segment). 


INSURANCE COVERAGE
Some car rental companies, like Hertz, provide state minimum insurance as part of the rental. Some companies, like Enterprise, require the renter provide primary coverage. As state laws vary, as do company policies, consult your local rental agency for their policy on insurance coverage.

Most standard insurance carriers will extend coverage equal to what their customer has purchased to the rental car while it is in use by their customer.

Many nonstandard (high-risk) insurance companies do not extend coverage to their insureds while a car is rented, unless the rental car in in use to replace their insured's regular vehicle (i.e. - the insured's vehicle is temporarily in the shop).

Check with your insurance agent to see if coverage is extended. 


FORM OF PAYMENT
It is natural in the course of business to expect customers to pay for goods/services rendered. A customer (renter) in the car rental industry is no different. Even if a third-party is paying for the daily rental fee, the fact is that renting a car is a luxury, and there is a cost involved. A renter is responsible for the gas and the condition of the car rented, regardless.

Credit Cards
For auto rental, the typical procedure is to use a credit card to secure the rental. The reasons are numerous, but the main idea is that a credit card can be used for additional charges over and above anticipated rental fees. Cash is good, but it can run out. A credit card can be authorized for more later, if the renter incurs more charges (i.e. - keeps the car a few extra days, etc.).

A secondary reason is that for a person to have a valid credit card, that person has (or at least had at one point) a favorable credit rating. Favorable credit ratings are directly proportional to a lesser likelihood of being involved in an at-fault accident. A renter wrecking a rental car rarely ends well. So low-risk renters are certainly preferable.

Typically, the credit card is authorized for the amount of the rental, plus a small additional amount ($50-$200 over), to cover incidentals. The charges may be left on the credit card at time of return, or may be paid in cash or by check.

Cash
Cash is a good form of payment. Unlike a credit card, cash cannot be "charged back." There are also no fees associated with using cash. The drawbacks to cash are that people rarely have enough cash to provide for a rental amount, plus security deposit for incidentals (which can easily total $400 or more). Also, cash can run out, if the rental is kept long enough.

It is true that if a person has a poor credit rating, they might not be able to secure a credit card, and cash might then be their only way of paying for a rental. There is a known correlation between poorer credit ratings and a higher likelihood of being involved in an at-fault accident.

It is also possible that a renter paying with cash might be less established in their place of residence and job, and might be unable to actually afford a rental. Hence the need for a cash-qualification form.

Check
Checks are a good form of payment at the end of the rental.
As a rule, most car rental companies will not rent a car to a person who wishes to make the initial deposit with a check. To do so would be to invite havoc.

Cash-Qualification Form
Any time a renter rents a car without a credit card on file for incidentals, a cash-qualification form must be filled out. That renter must cash-qualify regardless of who is paying the daily rental fees. The following information is gathered, and verified with other documentation:
Name (must match name on DL)
Address (must match address on DL. If does not match, it must match a utility / phone bill in that renter's name that is paid current through the most recent month)
Phone number (cell phone must be verified via call at the branch, or via cell phone bill in that renter's name, to that renter's address, paid current through the most recent month)
Place of employment and number to employer. (can be an exception on a replacement rental)
Verification of address (usually a utility bill - phone, water, electric, internet, gas. Must be paid current and through the most recent month. Can be internet verification of home ownership through tax assessor. This can also be an exception on a replacement rental.).

Replacement rentals can get one of the final two requirements waived, but not both.
Photocopy of DL is required on cash-only rentals. No exceptions. This is shredded at end of rental. 
No cash-only rental can get an exception on Name, Address, or Phone number verification.
All cash-only rentals must be approved by the manager on duty. 


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