Car Rental Agreement Template

A car rental agreement is a legally binding instrument and a type of contract generating an agreement between a lessor and a lessee ‌to rent a car for a defined period of time․ This template outlines the rights, obligations, and liabilities of the parties․

• Easy-to-fill car rental agreement form that work for most U․S․ states
• Best for for short-term or long-term car rentals
• Detailed car specifications including make, model, VIN, and year.
• Establishes minimum age (21+ that applies in most states), licensing, and insurance ‌requirements for drivers․

You can tailor clauses like security deposit and jurisdiction based on your state, and then download a printable car rental agreement as a Word or PDF document.

Who it’s for

Use this template to set expectations and legally protect yourself when renting a car to another person or company․ Our sample is suitable for:

• Individual vehicle owners renting their car
• Small car rental businesses
• Ride-share drivers offering short-term rentals
• Fleet managers leasing vehicles to employees
• Event planners arranging temporary vehicle use

When to use this template

Use this car rental agreement template when:

• Renting a personal vehicle to a friend, neighbor, or colleague
• Offering a vehicle for rent through peer-to-peer platforms
• Renting a car for short trips or vacations
• Leasing a vehicle to a contractor or employee for business use
• Arranging temporary vehicle use for events, travel, or seasonal needs
• Formalizing a car rental without verbal agreements

This agreement template is adapted for car rentals. If you consider leasing a truck, use our Truck Lease Agreement Template that better describes the vehicle use case.

What’s included in the Car Rental Agreement sample

The sample for ‌this car rental agreement includes clauses commonly found in vehicle rental agreements:

• Car details: Owner name and contact information, renter name and contact information, vehicle make, model, ‌and year, vehicle identification number, license plate number, odometer reading․
• Rental period: Defines the starting and ending date and time of the rental period․
• Rates and payments: Self-explanatory․
• Security deposit: Specifies the amount, when it must be returned, and the reason for any deductions for damages or other fees․
• Vehicle condition and inspection: A report that records the condition of the vehicle before a rental to mitigate disputes about existing damage․
• Use policies: Describes the maintenance, fuel, and mileage policies.
• Damage, accidents, and repairs: This describes how to report an accident, pay for damage, and file a claim․ It protects both parties and clarifies financial responsibility․
• Late return: Specifies the calculation of extra rental days․
• Termination: Describes when owner may terminate rental and retake car, such as breach of rental contract, failure to pay rent, or unlawful use․

Each section is in plain language, and can be customized to suit your particular rental situation․

How to write your Car Rental Agreement using the template

While this car rental contract template is appropriate for most U․S․ states, you may want to tweak certain clauses to fit your rental terms, risk profile, and state law․

1․ Vehicle identification and condition assessment

Fill in your vehicle's data and model, year, and VIN․ For luxury cars, you may include pre- and post-delivery inspections with a written condition report․ In many states, a landlord may only withhold a portion of the security deposit if they document pre-existing damage․ You may also present photos with timestamps as supporting evidence along with the invoice․

2․ Set the rental period

State exact pickup and return date and time․ Many states, including California and New York, have consumer protection laws prohibiting misleading and vague fees․ Never use ambiguous or open-ended language․

3․ Carefully structure deposits and rental payments

In some states, laws are established regarding security deposits for car rentals, such as:

• In California, car rental deposits are not regulated, but may be subject to consumer protection legislation․
• Illinois and New York require explicit fee disclosure to avoid being labeled as misleading in their practices․

Avoid vague statements like "additional fees may apply," but instead list potential charges without estimates․ When customizing your car rental agreement template, refer to most common security deposits bullpark:

| Group | States | Typical Standard Hold | Premium/Luxury Hold | Notes | | ---------- | ---------- | ---------- | ---------- | ---------- | | A | California, Illinois, Washington, Massachusetts, Pennsylvania, Maryland | $200–$300 | $500+ | Urban branches may set higher holds; debit cards can face stricter rules. | | B | New York, Nevada, New Jersey | $200–$400 | $500–$1,000 | Higher holds common due to market/insurance/demand (e.g., NYC, Las Vegas).| | C | Florida, Colorado, Michigan | $200–$350 | $500+ | Tourist or seasonal markets; SUVs/winter equipment can increase holds; debit policies vary.| | D | Texas, Arizona, Georgia, North Carolina, Oregon, Ohio, Virginia | $150–$300 | $500+ |Holds often lower for standard classes; branch-specific debit restrictions may apply.|

4․ Insurance and financial responsibility measures

This is the most important risk clause․ State laws again vary:

• In Florida, under the "dangerous instrumentality doctrine," owners may be liable for negligent acts of their permissive drivers․ Proper indemnification and insurance verification are key․
• New York offers vicarious liability protections under federal law, but risk allocation in contracts is vital․

5․ Limit authorized drivers

This clause reduces risk in states where owner liability attaches to persons given permission․ If your vehicle is financed or leased, verify with your lender if rental is permitted․

6․ Accident and damage reporting procedures

In Texas and elsewhere, if an accident is not reported in a timely manner, you may not be covered by your insurance․ Make sure you keep this clause in your car rental agreement.

7․ Governing law

This clause is particularly important if the driver is not from the state, because jurisdictional disputes can be expensive to litigate․

If your enterprise spans multiple states, or, for example, you rent out rare, expensive cars, you might want to check in with a local attorney․

9. Revise and sign

You can typically leave standard clauses such as:

• Entire agreement
• Severability
• Amendment requirements
• Notice provisions

A written contract protects both the owner and renter and avoids misunderstandings about vehicle use, fees, and responsibilities. Using the CreateMySignature tool, you can e-sing your car rental agreement online.