By: Joyel Roshall
Submitted: 2010-07-28 05:54:53 | Word Count: 596
Car hire is the process of renting a vehicle from a car hiring agency for a fee. The rented vehicle can also be a car, motorcycles, trucks and many more. The car hire agencies not only rent cars to their customers in addition they also offer services like satellite navigation system, winter tires, entertainment systems and also insurances. The rental period can range from few hours to few weeks.
People who are temporarily unable to use their cars, people visiting a country for holiday, etc can use these services offered by the car rental agencies.
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Car hire agencies
Usually agencies undertake the process of car hire and those agencies will have their offices in different branches to make it easy for the customers. Most of the car hire offices will be located in the busy areas like major cities and airports. Most of the car hiring agencies will have an online car booking system which helps their customers to reserve ahead of time.
Rental terms
All most all the car hire agency have car rental terms. The terms will include the minimum and maximum age for the drivers, specified distance that is allowed to travel with the rental car, specified location where you can take the rented car and many rental terms like this. With the development in the technology one can use the global positioning system to limit the maximum speed of the drivers.
In any case the drives must have a valid driving license and they must return the vehicle in a good condition. When you make reservation for a car hire the recommended form is booking through credit card.
The car hire agencies get a whole fleet of vehicles which they rent to their customers. If the car hire agency works on the fleet of vehicles they are at a risk since the car hire agency will not be able to predict how much money they will be able to recoup from the cost of the vehicles. As an alternative solution they can go for guaranteed or repurchase program which can be directly managed by the financiers or a manufacturer. Another option is that they can be leased. It is a general thing that vehicles which are outdated can be sold to a second hand car sales man or dealership person. Otherwise they can put the car in auctions.
Insurance
This is very important for a car hire agency. There is numerous car hire insurance available. Very popular among them is the CDW (collision damage waivers), it is also know as LDW (loss damage waivers). This insurance will cover the damage cost to a vehicle in case of accident.
You can also go for liability insurance also know as supplementary liability insurance which will cover the things like injury to the body, damage to the property. Personal accident insurance is the best choice to cover all the cost caused by medicals.
The last thing is the excess insurance. All the cars will have an excess that ranges from £500- £1,500, this is the amount that the renter have to pay if he/she makes an accident. By going for the excess insurance you can surely reduce the cost that you are responsible for paying. The main thing to be noted is that the excess insurance is not applicable on rental cars in all the countries.
