Meet the author: Taarini Singhal and Simon Algelt
Taarini and Simon combine marketing and operations expertise to support Tollaid’s growth. Their focus on communication, customer engagement, and streamlined systems helps position the company as both customer-focused and operationally strong.
The opinions expressed in this article are only those of the author and not necessarily those of ACRA.
In the car rental industry, compliance with vehicle registration and traffic and toll laws is more than a legal requirement; it’s the backbone of reliable operations. When car rental agencies have unpaid tolls, parking tickets, and red-light camera violations, the risks go far beyond a single fine or ticket. These aren’t just minor issues: they can directly block registration renewals, get vehicles booted or impounded, and take cars out of service.
Rental agencies face two major challenges:
- The financial and operational consequences of toll and traffic violations
- Uncertainty around how to manage traffic violations and toll compliance effectively.
Consequences of Not Being Compliant
For a car rental agency, falling out of compliance can bring operations to a halt. A single vehicle with an expired registration or unpaid fine can be taken off the road, leaving reservations unfulfilled and customers dissatisfied. Unpaid tolls and traffic tickets are especially damaging in cities like New York, Los Angeles, Chicago, and Houston. For example, fines can double if left unpaid, and registration renewals are automatically blocked until all violations are cleared. That means a vehicle that could be earning revenue is suddenly stuck in a lot, unavailable for rental.
If multiple vehicles are affected, the consequences multiply. This means lost revenue, added costs for towing and storage, and potential damage to the car rental agency’s reputation. Non-compliance also exposes agencies to legal penalties, higher insurance premiums, and strained relationships with regulators. For a fleet-based operation, having only 2% of cars with unpaid tolls or traffic violations can have a significant impact on operational expenses.
How to Stay Compliant and Avoid These Consequences
The good news is that staying compliant is straightforward with the right planning and tools.
For a car rental agency, compliance means maintaining a fleet that is fully legal, safe, and ready for customer use always. This includes:
- Ensuring every vehicle has current registration and valid insurance.
- Keeping a “Clear Tag” status on all vehicles. Meaning zero outstanding tolls, parking tickets, or red-light violations.
- Having proper record-keeping so that if regulators or law enforcement request documentation, the agency can provide it immediately.
- Making sure all required fees are paid in full.
- Being up to date with inspections.
Compliance is more than paperwork; it’s about operational readiness. A compliant fleet minimizes the risk of breakdowns with the law, protects the agency from liability, and reassures customers that they’re renting from a reliable and professional business. With automation, agencies can set up proactive alerts, automated payments, and real-time monitoring, turning compliance from a burden into a competitive advantage.
Building credibility and trust
Beyond avoiding fines or downtime, compliance is about credibility and trust. Rental customers expect safe and reliable vehicles with current registrations and no outstanding tickets; any lapse undermines confidence in the car rental agency. Regulators also monitor car rental agencies closely, and consistent compliance demonstrates professionalism and accountability. Compliance software and third-party partners help car rental agencies resolve toll and traffic violations before they snowball into lost revenue or fleet downtime.
Ultimately, compliance is what keeps cars rentable, reservations on schedule, and customers satisfied.