Florida Rental Car Requirements
As Florida’s tourism industry continues to expand and evolve, visitors and residents alike are often challenged with selecting the right rental car option. To that end, it is important to understand Florida’s car rental laws and regulations.
The law related to motor vehicle rentals in Florida is outlined in chapter 559 and chapter 627 of the Florida Statutes.
Chapter 559 governs the applicability of the "Florida Rental Car Volume Disclosure and Automatic Renewal Agreements Act." This section applies to all "motor vehicle rentals" which are defined as rentals for 90 days or less offered by a business engaged in the rental of at least ten rental motor vehicles at one time. Florida Statutes Section 559.801, 559.802. The statute outlines exactly what must be done in order to enter into a valid rental agreement with a customer including circumstances where the rental period may be extended . The statute defines the authorizations, conditions and procedures as well as providing sample language for the rental agreement. Rental agreements which do not comply with Chapter 559 are not enforceable against consumers.
Chapter 627 of the Florida Statutes governs motor vehicle rentals for insurance purposes. Specifically, this chapter creates "vehicle physical damage and medical payments coverage." Under this chapter, anyone injured in an auto accident while riding in a rental car is entitled to insurance benefits.
Additionally, the chapter assigns the responsibility of obtaining an accident report to insurance services. The chapter allows insurance companies the right to a pro rata refund of the premium paid by the insured if coverage is provided by the other vehicle’s policy.
Rental Car Insurance For Florida
Rental cars in Florida are required to have a $100,000 per person in coverage. Under Florida Statute 324, 202 you have to carry the minimum insurance required by your state of permanent residence. However, if you have out of state insurance, it has to be equal to Florida’s requirements. Florida laws require rental companies to offer basic liability coverage, and they must also offer uninsured motorist coverage, personal injury protection and other types of coverage but you are not required to purchase them. The only thing you have to buy is the basic insurance.
You Cannot Purchase 15/30 Coverage With A Rental Car Florida does not require the purchase of Personal Injury Protection (PIP) insurance. But under Florida Statue 324.151 a rental car company must ensure all four of the following before you can rent a vehicle in Florida: 1. All companies have to offer 100/300 coverage. 2. Companies must have medical payments coverage for each injured renter or occupant. 3. Companies must offer personal injury protection coverage. 4. You need uninsured motorist coverage. Florida rental car companies are not required to offer uninsured motorist insurance, personal injury protection coverage, or anything other than basic liability. Florida law only requires Florida auto insurance companies to offer uninsured motorist coverage and PIP coverage. Other coverages are optional. There are times when Florida resident want to rent a car with no insurance. These residents then end up paying the rental company for all the coverage offered, even though they did not need it. In the eyes of the rental car company, you are just like any other out of state person who comes to Florida and inquires about getting a rental car.
Rental Car Age Restrictions and Other Fees
The standard minimum age requirement to rent a car in Florida is 21, as is the case in real estate and liquor laws. If you’re between 21 and 24, the rental company may charge an added fee – up to $25 a day – for being considered a "young" driver. To rent a vehicle for a period longer than 10 or 11 days, you may be subject to these fees even if you’re older than 24 years old. New drivers may spend up to three days without paying this added fee.
Like the rest of the United States, there is an upper age limit that rental companies observe. Typically, this is set at 75 years. Rentals may still be available to drivers over this threshold at the rental company’s discretion (possibly involving additional fees).
Florida Rental Car Agreements
Typically, when you rent a car in Florida, you are required to sign a rental agreement. These agreements usually contain a variety of terms and conditions and depending on the rental agency, these can have a significant impact on your overall costs. Some of the key terms and conditions of the agreement that may have a financial effect include:
Mileage limit. Most rental car agencies will impose a mileage limit on the amount of miles you can drive your rental car. If you exceed this amount you will be charged additional fees. If you have a long trip to make it is preferable to obtain a vehicle that has no mileage restrictions or is unlimited mileage. You will have to pay a higher daily fee for this option, but it is substantially lower than the overage fee you will pay if you exceed the mileage restrictions of the rental vehicle you have.
Fuel policy. If you are receiving a rental car from a rental agency with a fuel policy that states you must return the vehicle with a full tank of gas, you must be aware that the cost of the gas you used is charged to your credit card. Additionally, an administrative fee is placed on top of this charge. To avoid surprise fees, it is best to return the vehicle with a full tank of gas and pay for your own gas and expenses.
Damage waiver. If you are in an accident and it is determined that you are at fault, your insurance will probably not cover the cost of damages to the rental vehicle. Because of this, rental agencies offer a damage waiver. This is an additional fee on top of the daily rental fee which waives your responsibility to pay for damages. There are a number of different damage waivers and they are not all equal. Make sure to read the details of the damage waiver before you sign it.
Liability coverage. The cost to cover you and your passengers can be as high as $15 per day. This is substantially higher than most personal insurance polices. Ensure both your rental agreement and your own insurance policy are reviewed so that you are not paying higher than necessary for liability coverage.
Late return penalty. Many rental agencies charge you a late return penalty that can be as high as $10 per hour. As such, it is important to pay close attention to the designated time frame for returning the rental vehicle to the rental agency.
Rights and Responsibilities When Renting
A little-known fact about Florida law is that rental car agreements may not conflict with the Florida Rental Car Act, which is outlined in the Florida Statutes. If any part of the rental contract does conflict with the Rental Car Act, a provision of the Rental Car Act shall replace it. However, if the Rental Car Act places a limitation on the liability of the rental car company and the contract provides for greater liability protection, then the contract shall control.
If you have to enter into a rental car agreement in Florida, go over the deal with a fine tooth comb. You have certain rights under Florida law when you rent a car in Florida, including: The rental car company must immediately provide a new vehicle, without extra charge, to anyone who – like you – is already a customer protected under this law. Some rental car companies try to take shortcuts when they get damaged vehicles. They might take photos of all the cars, or even video, before renting the vehicle to you. Apply common sense here with the rental contract and the pictures. When the rental car company accuses you of damaging the vehicle, remember that you did not get a car with damage and you did not sign for damage being there. Try to settle the issue amicably, and consider contacting a defendant’s lawyer if you cannot resolve the matter with the rental car company.
Florida Rental Car Consumer Protections
Laws and regulations have been put in place to protect customers of rental car companies. In addition to those enacted by the federal government, each state has enacted its own consumer protection laws and Florida is no exception.
Two important laws are the Truth in Lending Act and the Fair Credit Billing Act. When a rental car company offers to grant credit or financing, these laws require them to provide an accurate disclosure of the terms and conditions of the credit agreement before the customer enters into it. In addition, these statutes provide important consumer protections in the event of billing errors. Under the Fair Credit Billing Act, for example, consumers can dispute erroneous charges with their credit card companies and with the rental car company in question. In the present age of online bill payment, payment processing and digital transactions, the use of credit cards has become standard practice in the rental car business. For the most part, under these circumstances, credit card issuers will not require immediate payment from the renter . Therefore, the roughly 10 percent of renters who are charged for lost or damaged vehicles, one-way drop offs, and so forth, after their credit card has already been charged for the total cost of their rental, are at a likely advantage when the time comes to challenge these additional charges under the Fair Credit Billing Act.
The Federal Trade Commission (FTC) also monitors the rental car industry and has addressed the issue of deceptive advertising relative to rental agreements. When the FTC ordered the Rental Car Company to reimburse customers for certain violations of the Federal Trade Commission Act, their spokesperson Richard Cleland stated that "[t]he order sent a clear message to rental car [companies] that your advertising must give the consumer the complete cost of rental – not just the cost to rent a vehicle. We will not allow companies to deny consumers basic information." The FTC settlement included $13,000 in fines for 11 separate violations of the law.
Deposit for Rental Car Return
Returning a rental car is usually the final step of your trip. All that’s left is to clean out your luggage, turn in your car keys, and off you go. Or maybe it’s not so simple. In Florida, there are some procedural aspects of returning a rental car that may come as a surprise. Here are the most common ones.
You’ll usually be met by one of the rental car company’s agents when you return the car. They will look for any obvious signs of damage or wear-and-tear (sunburned dashboard, etc.) If you want to avoid chargebacks like the one referenced above, you would be wise to take pictures of the rental car before and after your trip. The return agent will certainly check for any damage, but don’t assume that they will either note or photograph it.
Also, just like renting the car, dropping it off early or late could incur extra charges, so be sure to double check your return time.
Most companies will charge you for the final day even if you drop it off after hours without the company representative present. Again, check your contract and invoice carefully to confirm that you do not get stuck for an extra day.
Updates and New Florida Rental Car Laws
Florida’s rental car laws have historically been relatively steady and without major changes. However, in 2021, a new law was passed to better protect consumers opting to give up their right to the personal injury protection benefits afforded by Florida statute. The new law is contained in Florida Statute § 324.051. Under the new law, "qualified" drivers who are subject to a limitation on their personal injury protection benefits under Florida Statute § 324.023(8)1 or under Florida Statute § 324.151(3)2 must be made aware of how much they will be financially responsible for after an accident prior to signing the rental agreement’s waiver of insurance requirements or the renter’s qualification for reduced personal injury protection benefits. Previously, the statute did not require the lessor to provide this information. This change is significant because the statute does not mandate an amount as to how much money needs to be recovered. In other words, if the rental company causes a serious injury auto accident in a car they rented out, and the driver is a "qualified renter," the $10,000.00 benefit to the renter ends there. The driver must collect the rest of the monetary compensation from the negligent party responsible for the collision.
1 324.023(8), Fla. Stat. (2012): "Qualified driver" means a natural person holding a valid driver’s license issued by this state; another state; the District of Columbia; Puerto Rico; a territory of the United States; or a country that is a party to the Convention on Certain International Road Traffic Offenses done at Geneva on September 19, 1949, and which has entered into a Memorandum of Understanding with this state allowing its drivers to operate motor vehicles in this state while holding such license; and who is subject to a limitation on personal injury protection benefits under s. 324.151(3). 324.051(3), Fla. Stat.: 324.051(3)-(6) applies only to drivers who do not have a personal injury protection insurance policy, and those drivers are considered "qualified drivers," as defined in section 324.023(8), Florida Statutes.
Tips When Renting a Car in Florida
A few small changes can make the process of renting a car in Florida easier. Here are some tips to help you save money and enjoy a carefree experience.
- Comparison shop for the best deals. Rates vary by company, proximity to the airport and even by day. Online sites like Kayak.com or Hotwire.com can streamline the process of evaluating prices. Just be aware that discount sites might leave out taxes and fees in their stated prices.
- Take time to read the fine print before signing anything. Different rental companies have different policies. For example: Free mileage sounds good, but a special charge might apply if you drive across state lines. Some companies charge for an additional driver, while others don’t. All companies do charge for underage drivers. Some will discontinue insurance coverage for third-party damage if a driver has been drinking, while others do not. If you decline the Damage Waiver or Insurance Replacement Plan, some companies will hold you responsible for all damages, while others do not. If damage occurs, they will charge you and seek recovery directly from your insurance company. Understanding these policies before you sign any contracts can save you from future conflict with the rental company.
- Be clear about your needs when renting a car. Just because you paid a bit more for one vehicle over another, doesn’t mean you are entitled to it. Rental companies sometimes overbook and fill demand by upgrading within a category. This policy is often at the company’s discretion. Expecting a full-size SUV when you booked a compacts size (the smallest rental size) is unrealistic. However, if the company cannot fulfill the terms of the agreement, then it is required to offer you the option of renting a comparable vehicle elsewhere. Another common pitfall occurs when renters assume a rental provided by a connecting airport is the same as the one from home. In reality, the contracts are often different. Failure to return a car without first reviewing the contract and obtaining the necessary documentation from the rental company can cause major problems when returning the vehicle.
- Use caution when buying gas. In an effort to avoid excess fees, many customers agree to return their rentals with a full tank of gas. Some companies do offer prepaid refueling, but such options rarely save money. In fact, gas prices at rental companies are routinely more expensive than the rates at local gas stations. If you would rather be safe than sorry, you can fill up at almost any corner before you return a vehicle. Renters should also be careful to avoid fuel issues with prepaid refueling. Most companies discourage renters from buying more gas than the vehicle used. If an emptier-than-full tank returns, the company will need to refill it. This usually costs more than charging the most recent renter; therefore some companies charge to cover their losses. The same is sometimes true when renting new vehicles. Car rental companies cannot sell used cars without first licensing them in their jurisdictions. So, the rental company sometimes loses money on a new rental like this. To protect against these losses, some companies charge by the mile for such rentals. Comparing contracts before signing can help protect against unnecessary charges.
- Read the return contract before signing and returning the vehicle. Most companies do not allow one-way rentals. However, companies will sometimes provide free one-way rentals to travelers on a tight schedule. If so, the company will ask you to sign a new rental contract when you return the vehicle. Be sure to read this contract before signing it. Failing to notice a new policy could lead to additional fees.
Final Thoughts
In summary, Florida rental car laws dictate various aspects of the rental process , from the minimum age to drive to the identification and insurance requirements. The rules and regulations are designed to ensure that both the renters and the rental car companies have protection in the event of an accident. It is crucial to be informed about these laws in order to enjoy a hassle-free, legally compliant experience in Florida.