Vehicle Rental Agreement

Required for all vehicle rentals (cars, trucks, motorcycles, boats)

⚠️ MEDIUM-RISK ACTIVITY - INSURANCE REQUIRED

Vehicle rentals involve significant risks including accidents, injuries, property damage, and liability. Both owner and renter MUST have appropriate insurance coverage.

1. INSURANCE REQUIREMENTS (MANDATORY)

⚠️ CRITICAL: INSURANCE IS REQUIRED

Both owner and renter MUST have valid insurance that covers peer-to-peer vehicle rentals. Traditional auto insurance may NOT cover P2P rentals.

Verify coverage with your insurance provider BEFORE renting.

1.1 Owner Insurance Requirements

Maintain comprehensive and collision coverage on the vehicle
Verify policy covers peer-to-peer rentals (many don't)
Consider commercial insurance or Turo-style coverage
Liability insurance with minimum state-required coverage
Provide proof of insurance to renter before rental

1.2 Renter Insurance Requirements

Provide proof of auto insurance before rental
Verify your policy covers rental vehicles
Liability insurance meeting or exceeding state minimums
Consider additional rental insurance if your policy doesn't cover P2P

LoopHood Provides NO Insurance

LoopHood does NOT provide any insurance coverage for vehicle rentals. You are responsible for securing your own coverage.

2. LICENSE REQUIREMENTS

2.1 Valid Driver's License

Renter must have valid, unexpired driver's license
License must be appropriate for vehicle type (motorcycle endorsement, CDL, etc.)
Owner must verify license before handoff
Owner may refuse rental if license appears invalid or suspicious
Renter must be at least 21 years old (or age specified by owner)

2.2 Additional Driver Requirements

Only authorized drivers may operate the vehicle
All drivers must be listed and have valid licenses
Owner must approve all additional drivers in advance
Additional fees may apply for multiple drivers

3. SECURITY DEPOSIT & PAYMENT

3.1 Security Deposit

Owner sets security deposit amount (recommended: $200-$1000)
Deposit held until vehicle returned and inspected
Covers damages, cleaning, late return, mileage overages
Returned within 7 days if no issues
Owner provides itemized deduction list if deposit is withheld

3.2 Rental Fees

Daily/hourly rate agreed upon by both parties
Payment due before keys are exchanged
Late return fees: [owner specifies, e.g., $50/hour after grace period]
Mileage limits and overage fees (if applicable)
Fuel policy: return with same fuel level or pay refueling fee

4. CONDITION DOCUMENTATION (REQUIRED)

⚠️ MANDATORY: Document Condition Before & After

Both parties MUST document vehicle condition with photos and written notes at pickup and return. This is your only protection in disputes.

4.1 Pre-Rental Inspection

Take photos of all sides of vehicle (front, back, sides, top)
Photograph any existing damage (scratches, dents, marks)
Photo interior condition
Photo odometer reading
Photo fuel level
Both parties sign written condition checklist
Exchange copies of documentation

4.2 Return Inspection

Repeat all photos from pre-rental inspection
Note any new damage immediately
Check for cleanliness and personal items
Verify fuel level matches agreement
Both parties sign return checklist

5. PROHIBITED USES

Renter agrees to NOT:

Drive under the influence of alcohol or drugs
Use vehicle for racing, speed contests, or timed events
Use vehicle for illegal purposes
Allow unauthorized drivers to operate vehicle
Smoke in vehicle (unless owner permits)
Transport pets (unless owner permits)
Drive off-road (unless vehicle designed for it and owner permits)
Tow anything (unless owner permits and vehicle equipped)
Leave vehicle unattended with keys inside
Transport hazardous materials
Use vehicle commercially (rideshare, delivery) unless owner approves

⚠️ Prohibited Use = Void Insurance & Full Liability

If renter violates prohibited uses, insurance may be void and renter is responsible for ALL damages, injuries, and liability.

6. RENTER LIABILITY

RENTER IS FULLY LIABLE FOR:

• ALL damages to vehicle during rental period
• Traffic tickets, parking tickets, tolls
• Towing and impound fees
• Theft or total loss of vehicle
• Mechanical damage due to misuse or negligence
• Cleaning fees if returned excessively dirty
• Lost keys or remotes
• Late return fees
• Injuries to third parties or property damage caused during rental

Renter's liability is not limited to the security deposit. If damages exceed the deposit, renter is responsible for full cost of repairs or replacement.

7. ACCIDENTS & EMERGENCIES

7.1 In Case of Accident

Call 911 if anyone is injured
Call police to file report (required for insurance)
Take photos of all vehicles and damage
Exchange information with other driver
DO NOT admit fault
Notify owner immediately
Notify your insurance company within 24 hours
Cooperate with insurance investigation

7.2 Mechanical Issues

Contact owner immediately for mechanical problems
Do NOT attempt repairs without owner authorization
Owner responsible for mechanical failures (not due to misuse)
Renter may be entitled to partial refund for loss of use

7.3 Theft or Vandalism

Report to police immediately
Notify owner immediately
Notify insurance companies
Provide police report to owner within 24 hours
Renter liable for theft if due to negligence (left unlocked, keys inside)

8. LIABILITY WAIVER

ASSUMPTION OF RISK AND RELEASE

8.1 Voluntary Assumption of Risk

You voluntarily assume risks including:

• Accidents, collisions, and injuries
• Property damage
• Vehicle theft or total loss
• Mechanical failures
• Insurance coverage gaps

8.2 Release of LoopHood

You RELEASE LoopHood from ALL liability related to vehicle rentals, including accidents, injuries, damages, theft, or any other claims.

8.3 Indemnification

You agree to INDEMNIFY LoopHood from any claims arising from vehicle rentals arranged through the platform.

LOOPHOOD IS NOT LIABLE FOR USER CONDUCT OR VEHICLE CONDITION.

9. DISPUTE RESOLUTION

Disputes between owner and renter must be resolved directly or through insurance companies. LoopHood is NOT responsible for mediating disputes or compensating for damages. Use LoopHood's 2Court system for facilitation, but understand that LoopHood makes no guarantees about outcomes.

10. ACCEPTANCE

Required Acceptance

By accepting this agreement, you certify that you have valid insurance, a valid driver's license, have read all terms, and agree to all responsibilities and waivers.

⚠️ KEY REMINDERS

• Insurance is REQUIRED for both owner and renter
• Document vehicle condition before/after with photos
• Renter is liable for ALL damages during rental period
• LoopHood provides NO insurance and assumes NO liability

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