Rental Cars Now Allowed to Use Substitute Drivers When Driving Is Prohibited Due to Alcohol or Other Reasons

Revision of Standard Terms and Conditions for Car Rental

The deductible limit in vehicle accidents is 'the actual repair cost incurred'
Specific inspection items upon vehicle delivery

[Asia Economy Reporter Joo Sang-don] Going forward, if a rental car renter is unable to drive due to reasons such as intoxication, the standard terms and conditions have been revised to allow the use of designated drivers. Additionally, it has been stipulated that the deductible in vehicle accidents shall be limited to the actual repair costs incurred.

On the 4th, the Fair Trade Commission announced that it has revised the "Standard Terms and Conditions for Car Rental" to include these provisions.

The existing standard terms prohibited driving by persons other than the driver listed in the lease contract (third parties), so even if the driver listed in the lease contract was unable to drive directly due to intoxication or physical injury, the use of a designated driver was not contractually permitted.

Accordingly, the clause prohibiting third-party driving in the standard terms has been revised to allow the use of designated drivers when the driver listed in the lease contract is unable to drive directly due to intoxication, physical injury, or similar reasons.

A deductible limit has also been newly established. The previous standard terms only stipulated that if the customer joined the company's self-operated vehicle damage waiver program, they must pay the deductible in case of an accident caused by the customer's fault, which raised concerns that customers might be charged the full deductible amount even for minor vehicle repairs. Therefore, a provision was newly added to limit the deductible to the actual repair costs incurred.

Along with this, to ensure more thorough inspections before vehicle delivery, an inspection checklist has been added as an appendix to the standard terms. If the customer requests, they can review the details of actions taken regarding poor maintenance, allowing consumers to clearly understand the measures taken. Also, if the company repairs the vehicle, it must provide repair documentation upon the customer's request, and the company can also request maintenance details if the customer repairs the vehicle.

A Fair Trade Commission official stated, "Through this revision, excessive repair cost claims in accidents will be prevented, and consumers renting vehicles will have strengthened rights by being able to use designated drivers in cases of intoxication or injury." The official added, "The Fair Trade Commission plans to post the revised standard terms on its website and notify business associations, the Ministry of Land, Infrastructure and Transport, and consumer organizations to actively encourage the protection of consumer rights according to the revision's intent and the use of the standard terms by businesses."

This content was produced with the assistance of AI translation services.