Car Hire Agreement Template
A free, generic UK-style car hire agreement (also called a vehicle hire agreement) covering the hirer and owner, the vehicle, the hire period, charges, excess and collision damage waiver, fuel, fines and the deposit. Edit it in Word to suit your business; the PDF comes by email.
Generic template, not jurisdiction-specific · Updated 2026-09-24 · Check what applies to you
What's inside
Sixteen numbered sections, from identifying the parties to the signature block:
- 1. The partiesOwner and hirer details, driving licence, optional licence check reference
- 2. The vehicleMake, model, registration number (VRM), starting mileage and fuel, existing damage
- 3. Hire periodStart, agreed return and return location
- 4. ChargesHire charge, VAT field, mileage allowance, extras, total
- 5. Security depositPre-authorisation amount and refund timeline
- 6. Authorised driversHirer and named additional drivers
- 7. Permitted use and territoryWhere and how the vehicle may be used
- 8. Fuel policyReturn level and refuelling charge
- 9. Excess and CDWExcess amount and waiver fields to fill in
- 10. Damage, breakdown and accidentsWhat the hirer does and who to call
- 11. Penalty charge notices and finesResponsibility and a bracketed administration fee
- 12. Late returnBracketed late return charge
- 13. CancellationNotice periods for both sides
- 14. Return of the vehicleCondition, keys and check on return
- 15. Governing lawLeft blank: England and Wales, Scotland or Northern Ireland
- 16. SignaturesOwner and hirer, with DD/MM/YYYY dates
Why identifying the vehicle and the drivers matters
Most hire disagreements come down to who had which vehicle, in what condition, and who was driving. Recording the registration number (VRM), the starting mileage and fuel level, any existing damage and every named driver's driving licence details gives you a clear record to work from. Pairing the agreement with a vehicle inspection form makes the condition at handover easier to show.
Excess, CDW and damage
The excess is what the hirer pays towards damage before any cover applies, and a collision damage waiver (CDW) is an optional arrangement some companies offer alongside it. The template gives you fields for both but leaves what they cover to your own policy or provider. If you take a deposit or pre-authorisation, a security deposit receipt keeps the amount and date on record.
Fines, fuel and changes to the booking
Penalty charge notices, parking and speeding fines often arrive weeks after the hire has ended, so the agreement should say who is responsible and what administration fee, if any, you charge. Fuel and late return work the same way: state the rule up front. For how cancellation terms are usually explained to customers, see our guide to a car rental cancellation policy. If you prefer “rental” wording and dollar amounts, there is a US-style car rental agreement template too.
Frequently Asked Questions
Is a car hire agreement legally binding?
A written agreement that both sides sign, with clear terms and a price, is generally the kind of document people rely on if there is a disagreement later. Whether a particular clause can be enforced depends on its wording, on who you are hiring to, and on where you operate, so this template can’t promise an outcome. Check what applies to you and take advice from a solicitor before relying on it.
Does it work in Scotland, Northern Ireland or Ireland?
It is a generic starting point, not written for one legal system. The governing law line is deliberately left blank so you can choose England and Wales, Scotland or Northern Ireland, and the territory clause has bracketed options for the UK, Ireland and the EU. Rules can differ between those places, so check what applies to you and adjust the wording, ideally with a solicitor.
What is the difference between the excess and a collision damage waiver (CDW)?
In general terms, the excess is the amount the hirer pays towards damage or loss before any cover applies, and a collision damage waiver is an optional arrangement some hire companies offer that may reduce or remove some of that amount. What a waiver covers and excludes varies by provider, so the template only gives you bracketed fields to fill in from your own policy. It gives no insurance advice.
Who pays for parking and speeding fines during a hire?
The template says the hirer is responsible for penalty charge notices, parking charges and fines incurred during the hire period, and lets you add a bracketed administration fee for dealing with each one. Whether a fee is allowed, and how much is reasonable, depends on your circumstances, so check what applies to you before fixing an amount.
Can I edit the template after downloading it?
Yes. You receive an editable .docx (it opens in Word, Google Docs or LibreOffice) and a PDF built from the same text. Add your logo, change the clauses, delete sections that don’t apply and fill in or remove every bracketed note.
Is my information kept private?
We ask only for an email address (and, optionally, a name) to send you the template. Your email address is used to deliver the file and, unless you tell us otherwise, to follow up about Lexio; see our privacy policy for details.
How is this different from the car rental agreement template?
The content is similar in purpose but written separately. This page uses UK-style wording (hire, hirer, excess, CDW, driving licence, registration number, pounds and DD/MM/YYYY dates), while our car rental agreement template uses “rental” wording and dollar amounts. Pick the one that matches how you and your customers talk about the service.
About this template
This is a general-purpose template maintained by Lexio (lexio.rent), a software company for professional car rental businesses. It is not a substitute for legal advice and is not written for, or reviewed against, the law of any one country or nation of the UK. That is why the governing law line is blank and fees, deposit timelines and insurance wording are bracketed for you to complete. Have the finished document reviewed by a solicitor before you rely on it.
Last updated 2026-09-24.
Looking for software instead of a one-off template? See Lexio's car rental software.