Additional Policy

INSURANCE PROTECTION, CLAIMS, & ROADSIDE ASSISTANCE POLICY

This Policy defines the scope of vehicle protection, liability allocations, accident workflows, and physical damage resolution pathways on the Velocity marketplace.

  1. Marketplace Insurance & Protection Framework

Velocity is a peer-to-peer marketplace, not a car rental company. Insurance protection during a marketplace trip is allocated dynamically based on chosen protection packages and applicable local regulations.

  • Insurance Provider: Liability insurance and physical damage protection plans offered on the Platform are underwritten and administered by [Insurance Carrier Name, e.g., Liberty Mutual /Travelers] (the “Insurance Provider”).
  • The Velocity Car Rental Protection Plan: When booking a trip, Guests select from tiered protection plans (e.g., Premier, Standard, or Minimum). These plans specify the maximum out-of-pocket financial exposure a Guest faces if the vehicle is damaged.
  • Deductibles: The Guest’s physical damage deductible is dictated strictly by the plan tier selected at checkout:
    • Premier Plan: $0 out-of-pocket deductible limit.
    • Standard Plan: $500 maximum out-of-pocket deductible.
    • Minimum Plan: $3,000 maximum out-of-pocket deductible.
  • Guest Financial Responsibility: If a Guest declines a Velocity Car Rental protection plan or selects a plan with a deductible, they are personally responsible for any physical damage, loss of use, towing, or storage fees up to their maximum deductible cap, regardless of fault. If a Guest violates the Platform’s Terms and Conditions (e.g., driving under the influence or unapproved drivers), all protection plan caps are voided, and the Guest faces full financial liability for the actual cash value of the vehicle asset.
  • Status of Personal Auto Insurance: If a Guest declines a marketplace protection plan, the Guest’s personal automobile insurance policy acts as the primary source of coverage for liability and physical damage. Users acknowledge that many personal auto policies explicitly exclude commercial peer-to-peer car-sharing activities. It is the sole responsibility of the user to verify coverage terms with their insurance provider before booking.
  1. Mandatory Accident Reporting Requirements

In the event of an accident, collision, theft, vandalism, or any vehicle damage occurrence, the Guest must immediately initiate the following sequential actions:

  1. Emergency Services: Notify local law enforcement and emergency medical services immediately if injuries occur or if local laws require a police report for traffic accidents.
  2. Secure Documentation: Obtain a copy of the police report or exchange driver details, contact numbers, insurance policy numbers, and registration information with all involved third parties.
  3. Host Notification: Notify the Host via the Velocity Car Rental’s messaging system within one (1) hour of the incident, provided it is physically safe to do so.
  4. Velocity Car Rental Notification: File a digital accident report with the Velocity Car Rental’s trusted team via the website or by calling our emergency incident queue within twenty-four (24) hours of the event. Failure to report an accident within this window may void selected protection plan coverages.
  1. Damage Claims & Inspection Process

To resolve physical damage incidents fairly, Velocity Car Rental enforces an objective, time-sensitive verification pipeline:

  • Reporting Time Limit: Hosts must inspect their vehicle immediately upon return and report any new physical or mechanical damage within twenty-four (24) hours of the trip’s scheduled or actual end time. Claims submitted after this 24-hour window will be rejected.
  • Photo and Documentation Requirements: All claims must be supported by high-resolution photographic evidence. Velocity compares Pre-Trip Photos (taken by the Host/Guest within 24 hours before the trip starts) with Post-Trip Photos (taken within 24 hours after the trip ends). If a Host cannot provide clear, time-stamped pre-trip photos establishing the baseline condition of the vehicle, the claim will be closed in favor of the Guest.
  • Inspection & Appraisal Process: Once a claim is verified as eligible, Velocity Car Rental or its designated third-party administrator will assess the damage using digital estimating platforms or on-site independent adjusters.
  • Dispute Procedures: If a Guest disputes a damage claim filed by a Host, they must submit counter-evidence (including their own timestamped checkout photos) within forty-eight (48) hours of being notified of the claim. Velocity’s specialized claims team retains final, binding administrative authority to settle disputes based on the evidence provided.
  1. Roadside Assistance & Vehicle Disablement

Velocity Car Rental provides 24/7 roadside assistance to support Guests during an active booking. Financial liability for roadside services is assigned based on the root cause of the breakdown:

  • Mechanical Breakdowns: If a vehicle becomes disabled due to a mechanical, electrical, or structural component failure not caused by user negligence (e.g., transmission failure, alternator failure), the Host is financially responsible for towing and diagnostic fees. Velocity will assist in rebooking the Guest or issuing a prorated refund.
  • Guest-Induced Incidents: If the vehicle requires service due to Guest operational actions, the Guest is financially responsible for the immediate service call and towing fees. This includes:
    • Lockouts: Retrieving keys locked inside the cabin.
    • Dead Batteries: Jump-starts are required because lights or accessories were left running.
    • Flat Tires: Changing a flat tire or towing the car to a repair facility (unless caused by a documented mechanical rim defect).
    • Fuel Mismanagement: Towing due to running completely out of fuel or putting the incorrect fuel type into the vehicle engine.

 

FINANCIAL TERMS, SECURITY DEPOSITS, AND INCIDENTALS SCHEDULE

This schedule outlines the core marketplace financial framework, fee components, security deposit processing, and incidentals billing policies governing Velocity Car Rental.

  1. Platform Payment & Payout Architecture
  • Rental Fees: The daily rate established by the Host for utilizing their vehicle asset. Rental fees are collected in full by Velocity Car Rental at the time the booking request is approved.
  • Service Fees: Velocity Car Rental charges an automatic Platform Service Fee on every transaction to fund identity verification, platform architecture, customer support, and operational maintenance. This fee is calculated dynamically as a percentage of the base rental fee and is explicitly visible at checkout.
  • Cancellation Fees: Assessed against Guests for late cancellations or Hosts for unprovoked cancellations, as defined by our Cancellation Policy.
  • Host Payouts: Velocity Car Rental retains collected funds securely and initiates the net payout to the Host’s linked bank account, usually within three to five (3–5) business days following the successful, undisputed completion of a trip.
  • Refund Processing: Authorized refunds are automatically credited back to the Guest’s original payment method within 3 to 10 business days, depending on the issuing financial institution.
  • Chargeback Mitigation: If a Guest initiates an unauthorized credit card dispute or chargeback with their bank to bypass legitimate platform fees, tolls, or damage claims, Velocity will immediately suspend the user’s account. Velocity reserves the right to pursue collection actions and share transactional logs, pre- and post-trip photos, and signed platform agreements with banking entities to dispute fraudulent chargebacks.
  1. Security Deposits & Administrative Deductions

To protect marketplace inventory and insulate the platform from financial defaults, Velocity applies an authorization hold or security deposit to transactions.

  • Deposit Amounts: Security deposit requirements are evaluated dynamically based on the Guest’s risk profile, age, driving history, and the vehicle class selected. Standard deposits usually range from $200 to $500, while specialty, luxury, or high-performance tiers may require a security deposit up to $1,500.
  • Withholding Criteria: Security deposits are held securely by Velocity and are released automatically within 72 hours after the trip concludes, provided no incidental fees, violations, or damage claims are reported by the Host. Velocity Car Rental will explicitly withhold funds from the security deposit to cover:
    • Unpaid tolls and traffic citations.
    • Parking tickets
    • Excess mileage and refueling deficits.
    • Cleaning, smoking, or biological contamination fees.
    • Physical damage deductibles.
  1. Incidentals, Fines, and Violations

Guests are legally and financially responsible for maintaining the interior and exterior cleanliness of the vehicle, respecting structural asset boundaries, and adhering to all local traffic and parking regulations.

  • Cleaning Fees: Vehicles must be returned in a clean state matching their pre-trip condition. If a Guest returns a car with excessive interior dirt, mud, sand, trash, or food spills, the Host may submit photographic proof within 24 hours to assess a professional detailing fee, usually ranging from $50 to $150, depending on the severity.
  • Smoking Fees: Smoking of any substance (including tobacco, cannabis, vaping, or e-cigarettes) is strictly prohibited inside any vehicle on the Platform. If a Host documents physical evidence of smoking (e.g., ash, burn marks, or persistent chemical odor), a mandatory Smoking Violation Fee will be assessed against the Guest to fund deep interior decontamination and asset restoration.
  • Tolls, Parking Tickets, & Traffic Citations: The Guest assumes exclusive liability for all municipal infractions incurred during the active booking window.
    • Tolls: Hosts must submit electronic toll receipts within 30 days of the trip’s completion to receive direct reimbursement via the platform.
    • Tickets & Citations: If Velocity receives notice of an unpaid parking ticket, red-light camera citation, or speeding fine incurred during a Guest’s booking window, the Guest will be charged the full face value of the fine plus an automatic Administrative Processing Fee per infraction.
  1. Mileage and Fuel Policies

Hosts establish explicit operational usage parameters inside their vehicle listings, which Guests agree to respect:

  • Mileage Limits: Listings must clearly state the daily distance allocation (e.g., 200 miles per day) or state “Unlimited Mileage.”
  • Excess Mileage Charges: If a Guest exceeds the aggregate mileage allowance for their trip duration, they will be billed for excess distance at the specific per-mile rate defined in the listing agreement (typically $0.25 to $1.00 per excess mile, adjusted based on vehicle category value).
  • Fuel Return Requirements: Guests must return the vehicle with a fuel level (or battery state-of-charge for Electric Vehicles) equal to the level recorded at trip check-in.
    • If a vehicle is returned with a fuel deficit, the Guest will be billed for the actual market cost of the missing fuel required to fill the tank, plus a flat Refueling Inconvenience Fee payable to the Host.
    • For Electric Vehicles (EVs), if returned below a 20% state-of-charge without prior agreement, a flat low-battery handling fee will be applied.