Renting

Can You Go to Jail for Not Returning a Rental Car?

Certain situations may result in an instance where you may keep a rental car longer than intended. But what are the consequences of keeping a rental car longer than the agreed upon terms? Learn about rental car contracts and the potential consequences.

Read time

6 minutes

Date

05.18.2023

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What happens if you love a rental car so much that eventually you never return the car? The consequences of that choice are negative. According to Hertz, 0.014% of their vehicles are stolen each year. Depending on your state, laws would classify this offense as a felony. It could also be considered auto theft or embezzlement. 


Regardless, continue reading to learn about rental car contracts and the potential consequences of not returning the vehicle. Be aware that the following is not legal advice, and the best action to take is to consult with a lawyer.


Additionally, if you need a long-term rental, FINN has what you're looking for so you won't need to switch cars often, yet can still retain flexibility. Check out a wide range of vehicles offered. Plus, your monthly payment includes insurance, maintenance, and roadside assistance so you can focus on planning your routes. 

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How to understand rental car contracts

A rental car contract, also known as a car rental agreement, is a legally binding document that outlines the terms and conditions between a rental car company and a customer who wishes to rent a vehicle. It serves as a contract between both parties and typically includes the following:


  1. Identification of the parties involved: The contract will identify the rental car company and the customer, including their contact information and relevant identification details.
  2. Rental vehicle information: The contract will specify the details of the rental vehicle, such as the make, model, year and license plate number.
  3. Rental period: It will specify the duration of the rental, including the start and end dates and times.
  4. Rental fees and payment terms: The contract will outline the rental fees, including the base rate, additional charges (such as taxes, insurance, or mileage fees), and any applicable security deposit. It will also include information on accepted payment methods and due dates for payment.
  5. Insurance coverage: The contract will detail the insurance coverage provided by the rental company and any options for additional coverage that the customer can purchase.
  6. Rental restrictions and conditions: This section will outline any limitations or conditions imposed on the rental, such as mileage limits, geographic restrictions, driver age requirements, and any prohibited activities (e.g., off-road driving).
  7. Liability and responsibilities: It will specify the responsibilities of both parties, including the customer's obligations to return the vehicle in the same condition and the rental company's responsibilities to maintain the vehicle's safety and functionality.
  8. Reservation details: If the customer made a reservation, the contract may include information about the reservation, such as reservation number, cancellation policy, and any applicable penalties.
  9. Terms and termination: The contract will specify the terms under which either party can terminate the agreement, including any penalties or fees associated with early termination or failure to comply with the contract's terms.
  10. Signatures: The contract will typically require both the customer and the rental company representative to sign and date the agreement, indicating their acceptance of the terms and conditions.

With this knowledge of the rental contract, the following are the most common contract violations that could occur in legal action. It is important that you confirm these with a lawyer based on your own state’s laws. 


  • Unauthorized driver: Allowing someone not listed as an authorized driver in the rental agreement to operate the vehicle can be a violation.
  • Breach of rental period: Failing to return the rental car within the agreed-upon timeframe or extending the rental period without prior authorization from the rental company.
  • Excessive mileage: Going over the mileage limit specified in the rental agreement without paying for additional miles.
  • Violation of geographic restrictions: Driving the rental car in areas prohibited by the rental agreement, such as crossing international borders or driving on unpaved roads.
  • Negligent use: Engaging in reckless driving, using the rental car for illegal activities, or causing damage due to drunk driving.
  • Failure to report accidents or damage: Notifying the rental company promptly in case of an accident, damage, or theft of the rental vehicle.
  • Breach of fuel policy: Returning the vehicle with less fuel than required by the rental agreement, usually stated as a full-to-full or specific fuel level policy.
  • Smoking or pet policy violations: Smoking or transporting pets in the rental car when it is explicitly prohibited by the rental agreement.
  • Unauthorized modifications: Making any alterations to the rental car, such as installing accessories or making mechanical modifications, without prior approval.
  • Violation of prohibited activities: Engaging in activities that are explicitly forbidden by the rental agreement, such as towing, racing, or using the vehicle for commercial purposes.
Can You Go to Jail for Not Returning a Rental Car
Can You Go to Jail for Not Returning a Rental Car

With this knowledge of the rental contract, the following are the most common contract violations that could occur in legal action. It is important that you confirm these with a lawyer based on your own state’s laws. 


  • Unauthorized driver: Allowing someone not listed as an authorized driver in the rental agreement to operate the vehicle can be a violation.
  • Breach of rental period: Failing to return the rental car within the agreed-upon timeframe or extending the rental period without prior authorization from the rental company.
  • Excessive mileage: Going over the mileage limit specified in the rental agreement without paying for additional miles.
  • Violation of geographic restrictions: Driving the rental car in areas prohibited by the rental agreement, such as crossing international borders or driving on unpaved roads.
  • Negligent use: Engaging in reckless driving, using the rental car for illegal activities, or causing damage due to drunk driving.
  • Failure to report accidents or damage: Notifying the rental company promptly in case of an accident, damage, or theft of the rental vehicle.
  • Breach of fuel policy: Returning the vehicle with less fuel than required by the rental agreement, usually stated as a full-to-full or specific fuel level policy.
  • Smoking or pet policy violations: Smoking or transporting pets in the rental car when it is explicitly prohibited by the rental agreement.
  • Unauthorized modifications: Making any alterations to the rental car, such as installing accessories or making mechanical modifications, without prior approval.
  • Violation of prohibited activities: Engaging in activities that are explicitly forbidden by the rental agreement, such as towing, racing, or using the vehicle for commercial purposes.

6 potential consequences of not returning a rental car

So what happens if you ultimately do not choose to return your rental car? The following consequences may occur.


1. Late fees

Rental car companies typically charge late fees for each day or hour that the vehicle is overdue. These fees can vary depending on the rental company and the terms stated in the rental agreement.


2. Additional charges

If you fail to return the rental car on time, you may be charged additional fees beyond the initial rental period. These charges can accumulate and result in a significantly higher cost than originally agreed upon.


3. Loss of discounts or promotions

If you had any special discounts, promotions, or rates associated with the original rental period, not returning the car on time may result in losing those benefits.


4. Contract violation fees 

Failure to comply with the terms of the rental agreement can lead to additional penalties or contract violation fees. These fees may be outlined in the contract and can be imposed for violations such as exceeding mileage limits, unauthorized driver use, or breach of other rental terms.


5. Vehicle recovery

If you don't return the rental car as agreed, the rental company may initiate the process of locating and recovering the vehicle. This could involve hiring a recovery service or working with law enforcement authorities, and the costs associated with this process may be passed on to you.


6. Collection and legal action

If you fail to return the rental car and do not respond to communication attempts from the rental company, they may pursue collections or legal action to recover the vehicle or the financial losses incurred. This can result in additional fees, damage to your credit score, or even a civil lawsuit.


It's important to note that the consequences can escalate depending on the severity of the situation and the rental company's policies. If you're unable to return a rental car on time, it's crucial to communicate with the rental company as soon as possible to discuss possible solutions and minimize any potential negative consequences.

So, can you go to jail for not returning a rental car?

Not returning a rental car typically does not result in immediate imprisonment. However, if the rental car company believes that you have unlawfully kept their vehicle, they may choose to involve law enforcement authorities. The specific legal consequences can vary depending on state laws, the value of the vehicle, and the circumstances surrounding the situation.


If you are facing difficulties in returning a rental car or foresee challenges in meeting the agreed-upon return date, it is crucial to communicate promptly with the rental company. By informing them about the situation and working together to find a solution, you can often avoid legal complications.

Final thoughts

If you are facing difficulties in returning a rental car or foresee challenges in meeting the agreed-upon return date, it is crucial to communicate promptly with the rental company. However, in the first place, if you know you will need a vehicle for a long period of time but do not want to make the long-term commitment of purchasing a vehicle, consider a FINN car subscription.


With FINN you can have access to a car on a longer agreed upon time frame of six to 12 months, as well as benefiting from roadside assistance and insurance coverage. Explore the many vehicles you could subscribe to with FINN today. 

Can You Go to Jail for Not Returning a Rental Car
Can You Go to Jail for Not Returning a Rental Car

Final thoughts

If you are facing difficulties in returning a rental car or foresee challenges in meeting the agreed-upon return date, it is crucial to communicate promptly with the rental company. However, in the first place, if you know you will need a vehicle for a long period of time but do not want to make the long-term commitment of purchasing a vehicle, consider a FINN car subscription.


With FINN you can have access to a car on a longer agreed upon time frame of six to 12 months, as well as benefiting from roadside assistance and insurance coverage. Explore the many vehicles you could subscribe to with FINN today. 

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