BlockchainTechnology

Car rental problems

blockchain and rental car

 

Car rental problems

The purpose of the research

One day we will all need to rent a car.

So, We will face many problems

For example:

  • Driving Challenges with Overseas Travelers. …
  • Complex Booking & Pricing Management. …
  • Improving Customer Service and Transparency. …
  • Brand Awareness
  • New Independent Car Rental Companies

Car rental problems

Do you know about tackling rental problems, all the information they need to know about the most common rental problems and how to tackle them?

Blockchain to enable peer-to-peer car rental gain further prominence

There is a shift in paradigm from car ownership to car sharing, via car rental or leasing.

The fact that vehicles are under-utilized and parked (and inactive) most of the time, while the vehicle owners incur ongoing fixed costs such insurance, tax, maintenance, and parking, is further driving this shift.

The process is fully decentralized and digital without any intermediary required which is the key advantage of car rentals being executed over blockchain.

Transparency of transactions made over a distributed ledger also adds to the credibility, thus lowering the risk of any fraudulent activity to a great extent.

Lower fee offered due to elimination of intermediaries is another major advantage of using the blockchain technology in car rental industry.

Do you think blockchain has a solution?

 

  What is the rental car?

A car rental or car hire agency is a company that rents automobiles for short periods of time for a fee.

It is often organized in numerous local branches, and primarily located near airports or busy city areas and often complemented by a website allowing online reservations.

Car rental agencies primarily serve people who have a car that is temporarily out of reach or out of service, for example travelers who are out of town or owners of damaged or destroyed vehicles who are awaiting repair or insurance compensation.

Generally, liability coverage purchased through a private insurer extends to rental cars.

Comprehensive policies (“full coverage”) usually also apply to the rental vehicle, although this should be verified beforehand.

Full coverage premiums are based on, among other factors, the value of the insured’s vehicle.

This coverage, however, cannot apply to rental cars because the insurance company does not want to assume responsibility for a claim greater than the value of the insured’s vehicle, assuming that a rental car may be worth more than the insured’s vehicle.

Most rental car companies offer insurance to cover damage to the rental vehicle.

These policies may be unnecessary for many customers as credit card companies, such as Visa and MasterCard, now provide supplemental collision damage coverage to rental cars if the rental transaction is processed using one of their cards.

These benefits are restrictive in terms of the types of vehicles covered

Car rental problems

Problems of rental car

Renting a car is such a common part of the travel experience that you’d think the process would be straightforward and transparent yet somehow it is anything but.

Many travelers aren’t sure how to rent a car without making a few common mistakes.

 

Prepaying for Gasoline

Prepaid gasoline charges appeal to the desire for simplicity while travelling, and also to concerns about being late for flights. As airport security has added considerable time to this process, rental companies have come up with new options for car refueling, and are giving them the hard sell at the rental desk

Purchasing Insurance

Your Own Auto Insurance Covers You

In general, the rule of thumb is that the coverage you have for your main vehicle extends to your rental vehicle, because the rental is considered a replacement vehicle under the policy.

Most policies will cover you even if the rental car is a “better” or more valuable car than your own car, so you don’t have to worry if you get an upgrade or rent a much better car than the one you insure at home.

 

Purchasing Insurance

Your Credit Card Covers the Rest

Anything your own car insurance does not cover, it is likely that your credit card will.

In some cases the credit card coverage is as good as or better than your auto insurance; in others it is intended to be secondary insurance to help cover anything your auto insurance does not.

Of course, you will need to pay for your car rental using that card; just having a qualifying credit card does not give you any protection.Car rental problems

damage

When a rental car is damaged, “loss of use” charges are applied to cover the potential revenue lost when the vehicle is off the road for repairs.

This is typically charged in the amount of a day’s rental for that vehicle, and most auto insurance companies do not cover this fee.

Many credit cards do, however; American Express, MasterCard, and Visa all offer “loss of use” coverage with rentals paid for with some of their cards. Check the terms and conditions in advance to make sure.

Ignoring Potential Offers for Upgrades

In most cases, the desk agent has considerable discretion in setting upgrade rates, so if he or she asks if you are interested in a larger car, respond that it depends on the price; you might find yourself in a bigger and better car at minimal additional cost.

Making Too Cursory an Inspection Upon Departure

When you pick up your car, check it inside and out for anything that could potentially be considered damage before you drive away. Look for scratches, scuffs, loose parts, and working power windows and mirrors.

Crossing International Borders

Most U.S. car rental agreements do not allow you to drive the car across international borders.

Additionally, your U.S. car insurance rarely covers international car rentals, so you will likely want to purchase insurance from the rental company at the time of rental.

Credit card companies may help here, as most do offer coverage in many international destinations.

Outside the U.S., policies on border crossing vary by destination and car rental agency. In some cases driving into another country is permitted if you give advance notice and/or pay an extra fee.

If you do drive across international borders without authorization and you have a problem, the protections of your rental contract, insurance, and other sources may be negated. For more information, see International Car Rental Tips.Car rental problems

 

Blockchain in rental car

Blockchain technology is designed to encourage a sharing economy platform so that businesses such as P2P car rentals and leasing can become integrated and cost-effective, through collaboration among participants in a common, transparent, and “trustless” (or distributed trust) environment, which are the primary.

blockchain, with its ability to offer significantly more transparent and decentralized way of conducting operations, has the potential to come to the forefront of technologies which are disrupting the way most industries work today.

While the application of blockchain is still currently focused largely on cryptocurrencies, the technology is slowly finding its way to a range of industries, including the car rental and leasing industry.

Car rental and leasing sectors are growing worldwide, driven by rising technological advancements in transportation and increased need for ease of mobility.

A shift in demand from car ownership to car sharing (not to be confused with ride-sharing services such as Uber or Lyft) is driving the growth in car rental and leasing industries.

The process of renting a car is highly centralized, where the car rental company being the main point of contact for the driver to rent cars.

Car rental companies need to maintain a fleet of cars, as well as car stations and staff to efficiently run their operations, which makes up for bulk of their operating costs.

Car rental companies cover these costs from (high) rental rates charged to their customers.

The issue can be aided by the emergence of blockchain, which is acting as the market disruptor.

The use of a distributed ledger for car rental and leasing is likely to revolutionize the industry, especially P2P car sharing.Car rental problems

 

Conclusion

Emergence of use of blockchain in car rental offers a safe (from frauds) and reliable car-sharing platform, a fact that is likely to further promote P2P car sharing.

Inherent unalterable properties of the blockchain offer a secure platform for both car owners (to list their cars) and the customers.

The concept of blockchain in car rental industry works similarly to any other blockchain transaction.

Service providers (or car owners) and end clients registered on the blockchain can sign digital smart contracts which execute contract terms based on pre-agreed rules in place, similar to a regular rental model.

The smart contract also contains the necessary information, such as details of the renter (driving license proof, insurance, and credit card details) and data such as car registration number, rate, mileage, length of rental, and credentials of the car owner.

All financial transactions (rental payment) can be done either through a card, or using associated cryptocurrencies and tokens purchased to get registered on the blockchain.

 

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