What is the purpose of charging a deductible to customers?

Charging a deductible to customers serves the purpose of collecting a portion of potential losses. This practice is common in the rental car industry as it helps to mitigate the financial risk faced by the rental company when vehicles are damaged or involved in accidents. By requiring customers to pay a deductible, the rental company ensures that some of the costs associated with repairing or replacing vehicles are covered, minimizing the financial impact of accidents or damage.

This approach also encourages customers to be more responsible and cautious while driving the rental vehicle, knowing that they will bear some financial responsibility in the event of damage. Additionally, the deductible helps rental companies to control their overall costs and maintain their fleet effectively, which can contribute to better service in the long run.