Contents of Auto Rental News - MAR-APR 2012

Magazine for the professional car and truck rental industry.

Page 23 of 35

that the minimum age to rent a vehicle must be "reasonable." T e court ruled, among other reasons, that because the word "reasonable" wasn't in the California statute that it could not interpret that the statute meant something "other than what it said," adding that the court has no au- thority to rewrite a state statute. "T e omis- sion of the term 'reasonable' thus appears to indicate an intent (by the Legislature) not to impose a reasonable requirement in the mini- mum age provision," the court opinion states. And in regards to potential age discrimi- nation in Lazar v. Hertz, the court said that businesses retain the right under the Unruh Act, which bans discrimination in business in California, to establish prudent business practices related to the services performed. T e court said that these practices, which can include age restrictions, are "reasonably related to the operation of that business." Even further, as industry consultant Jim Tennant of T e Tennant Group says, car rent- al companies have many requirements that go beyond state statutes. For example, he cit- ed that there's no law requiring the use of a major credit card to rent a vehicle; however, many companies ask for a credit card in the
standing instructions, take extra time with them at the car. Drive around the block once with them to make sure they are familiar with the vehicle — especially with today's in-vehicle
technology and plethora of bells and whistles. 2. See if the customer is familiar with the area. Make sure customers know how to get to their next destination, and if there's GPS in
renter's name. "It's just a rental requirement," Tennant says, adding that if companies only practiced what state legislation outlines, "You would be out of business in a week."
Best Practices
So while courts and legislatures have spo- ken on age discrimination, cases for negligent entrustment still surface. Tennant notes that when a car rental company is found negligent, it's oſt en due to procedural errors and not be- cause of actual policy issues.
So to help protect your rental operation from a negligence claim, here are some guide-
lines to follow: 1. For customers having diffi culty under-
A SAMPLE OF AGE POLICIES
These are extractions of partial stated age restriction policies from major car rental companies, with company name replaced by RAC. "The primary renter of the vehicle must be 25 years of age, or
for select corporate contracts and international tour accounts, the minimum age is 21." "Certain specialty and larger sized vehicles may not be rented to
younger drivers."
"Some locations maintain maximum age limits." "RAC reserves the right to refuse rental of a vehicle if the renter demonstrates inability to handle road rules and conditions." "18 years of age is the minimum for military or government personnel traveling on offi cial orders under government rates. Govern- ment or military leisure travel though is 21 years old, and rate may be higher for under age 25. (U.S. only.)" "New York State: The minimum age for N.Y. is 18 years of age. An $80.00 per day additional charge applies to 18-20 aged renters and a $23.50 per day additional charge applies to 21-24 aged renters." "In New York State the minimum age to rent is 18 with a $52
per day surcharge for renters age 18-20 and a $35-per-day underage surcharge for renters age 21-24." "Michigan will continue to have a minimum age of 18 with a
$41-per-day surcharge for customers between the ages of 18-20 and $28-per-day surcharge for customers between the ages of 21-24." "All RAC locations rent to drivers at least 25 years of age. Most
22 ARN • MARCH / APRIL 2012
RAC locations rent to younger drivers age 21-24, and some locations rent to drivers under age 21. There is usually an extra charge for drivers under age 25, which varies by location as identifi ed in the Local Policy Details section of the Rate Details page." "RAC rents to customers between the ages of 21-24 with a valid
credit card and driver's license. At time of rental, we will automatically apply an additional $27-per-day underage surcharge in the U.S. and $35 per day in Canada for these drivers. (See exceptions.)" "Renters between the ages of 21-24 may not rent vehicles in the
following car classes: Luxury, Specialty, Minivans, Passenger Vans, Full- Size SUVs, Premium SUVs." "At corporate-operated locations, RAC does not have a maximum age limit in the U.S., but there may be upper-age restrictions in some other countries." "The minimum age to rent a vehicle at most RAC locations in the United States and Canada is 21 years of age. Please refer to the Terms and Conditions for specifi c information on driver ages at the location where you intend to rent and the applicable charge for drivers 21 to 24 years of age." "Renter must be 25 years of age unless specifi ed otherwise in
specifi c location's policy. Where applicable by law, locations will charge an underage fee. Please refer to individual location policy."
the vehicle, be sure to show them how to use it. 3. Remind employees that it's OK to say "no." Your employees know not to rent to someone smelling of alcohol, but it's also per- missible to refuse to rent to someone who tells you that they haven't slept in several days, or to someone who doesn't seem to understand
directions or has diffi culty seeing. 4. Keep surcharge amounts reasonable. If implementing a surcharge on younger drivers, be sure you can prove that your age-related surcharge is not just a profi t center. Your sur- charge should essentially cover the increased insurance cost to you for renting to a younger
driver, and that will vary by state. 5. With online reservations, properly dis- close your age restriction policy. Include this disclaimer clearly during the reservation and
in advertisements. 6. Be consistent. Whatever your proce-
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