If you’re renting a luxury car for an Instagram photo shoot, read the whole rental contract first. In particular, look at the clauses saying who may drive and how the car can be used, where you can take the car, the collision damage waiver exclusions, the damage charges, fuel and return policies. But you also need to know two rules from outside the contract. Film permits and disclosure rules.
Make sure that the person doing the driving is listed as a permitted driver on the rental agreement. The people named in the rental agreement will be the only ones allowed to drive. If someone else does, the collision damage waiver may be invalidated, so if there is an accident you could be held personally liable. Most places make it easy to add extra drivers for a fee, and New York state caps the charge for an extra driver at $5 per day. New York law says a rental place can’t refuse to rent to a driver 18 or older just because of their age when insurance is available, but the state says it is okay to pass on the additional costs of insuring a younger renter. It’s important to check young driver surcharges, too.
Check if they allow you to take the car off paved roads or where you can use it, and whether they forbid any commercial use. Some car rental companies may allow filming, but that is not a given. In New York City, permits are needed for any movie making with any kind of prop vehicles, stunts, or needing production parking, or equipment beyond a tripod. Permits are not required for use of a handheld camera or tripod. Be sure to check in advance whether you need a permit for your specific shoot.
Collision Damage Waiver
If the car gets damaged, you may be personally responsible to pay to repair or replace the car. Many rental agreements will allow you to buy a collision damage waiver that will limit your liability. The collision damage waiver is not insurance, it’s just an agreement that if the rental is damaged, the company will not collect from you. But the waiver may not apply in certain circumstances. Make sure to read the contract to see if there are any conditions on the waiver, and whether anything is excluded from the waiver. Check whether the car will not be covered if it is taken on dirt roads, or when the person driving it is under the influence of drugs or alcohol.
In New York, if you’re renting a vehicle with a sticker price over $50,000, there is no cap on the daily waiver price. This can get expensive. Be aware that many credit cards also offer collision damage waiver coverage for rental vehicles. Florida also has an interesting rule requiring that the rental company’s liability insurance is primary, unless the contract says in at least 10-point type on its face that the renter’s insurance is primary, which may make it useful to read a rental contract in Miami.
In New York state, there are very specific rules about collecting for damages. In New York, a rental company may not charge more than the lesser of the reasonable cost of repairing the car, or the vehicle’s market value before the damage. There can be no loss-of-use charges, and no administration fees either. Car rental companies in New York cannot collect a damage deposit until a judgment is entered. The claim must either be made at the time the vehicle is returned, or if it was returned after-hours, then it must be made within 10 days.
The restrictions on where you can take the car can be detailed, and many contracts also set out how it must be returned. This can be very important if the shoot will be taking place in another city, or even in another state. If you don’t abide by the rules for taking the car, the company may exclude coverage from the collision damage waiver, and you may be personally liable for paying for damage to the car. Some agreements can charge for a fuel penalty if the car is not returned with a full tank, often at a higher rate than the cost of filling up.
The Daily Rate for the Car Is Only Part of the Bill
There can be a prepay fuel charge when you pick up the vehicle, and at return, you may not be refunded for any excess. So it can be worth doing the math first. Check whether mileage is unlimited or capped with a per-mile overage charge. If you rent a car for a week but return it more than a day early, you can be hit with an expensive ”recalculation,” where instead of paying the low weekly rate, you’re charged the much higher daily rate.
New York adds an additional 12% tax on top of regular sales tax for car rentals. Florida also charges a $2 a day surcharge for the first 30 days of a rental.
Disclosure Rules
Rental companies may be offering social media influencers special deals in exchange for social media posts. That could trigger disclosure rules. If you got a free or discounted rental, be aware that you still have to disclose that it was provided for free or discounted. If a company provides a free or discounted car even if they never actually asked for a post, the Federal Trade Commission’s Endorsement Guides deem that as a material connection. The FTC advises that a video caption isn’t sufficient, and that the disclosure needs to be made within the video itself. And if you only mention the deal in a bio, but you don’t say it in the video itself, that may not be enough for the FTC to consider you in compliance.
