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Global Car Rental : A Glossary to Understand the Terms

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Car Rental Glossary for Car Rental Online at Car Hire International

​The following summary is what our clients need to understand the meaning of the Terms used by the Global Car Rental Industry when making a vehicle reservation.

Collision Damage Insurance: Included in the Rate

This means your liability for damage caused to the rental vehicle is relinquished if it is involved in a collision. The waiver is limited to a certain amount and often excludes glass (windows etc.), tyres and any towing. The waiver usually carries an excess/deductible of a certain amount; this means that the renter will be liable for a certain amount. This amount will be frozen off your credit card on arrival.

Excess

When a car is hired, CDW (Collision Damage Waiver), Theft and Third Party Liability is generally included in the car rental price. There is almost always an Excess (also referred to as Super CDW, Non Waiver or Deductible) on the CDW and Theft portions of the rental. The Excess can range from about £250 upwards to over £2000. This means that in the event of theft or damage to the rental vehicle, the renter must pay the first portion of the cost, i.e. the Excess, to the car rental company. The amount can vary from country to country.

Damage Excess Reduction

This is an amount you pay per day to reduce the amount of Excess on the vehicle. This can include tax.

Theft Insurance: Included In Rate

This removes or reduces the rentor’s liability for the attempted theft or theft of the rented vehicle. The waiver may carry an excess/deductible amount, which means that the renter will be liable for a certain amount of the value of the vehicle damaged or stolen.

The Theft Insurance provided by the car rental company covers theft of the rental vehicle only, but not personal effects, which would normally be covered by either your travel insurance or your household insurance. There is generally an Excess on the theft portion of the rental. It is this Excess which is covered by our Annual Excess policies. For negligence issues you are contracted by your rental agreement signed with the agent. 

Third Party Insurance: Included In Rate

This means your liability for damage caused to other vehicles is relinquished if it is involved in a collision. This is included in the rate.


Collision Damage Waiver (CDW)

This means your liability for damage caused to the rental vehicle is relinquished if it is involved in a collision. The waiver is limited to a certain amount and often excludes glass (windows etc.), tyres and any towing. The waiver usually carries an excess/deductible of a certain amount; this means that the renter will be liable for a certain amount. This amount will be held off your credit card at pickup.

Glass/Tyre Waiver

This removes or reduces the rentor’s liability for damage to the windows or tyres. These are not covered in the Collision Damage Insurance. It is usually charged at daily fee.

Personal Accident Insurance

PAI insures the renter for the duration of the rental in the event of their accidental death or bodily injury (coverage is 24 hours a day, in or out of the car). The renter's passengers are also covered while entering, occupying or exiting the vehicle. This cover is sold at the counter. If you purchased personal travel insurance, you should check with your insurance company to see if this provides adequate cover. Most drivers decline this insurance.

Liability Insurance
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Every country has a minimum amount of insurance needed for someone to be permitted to drive. This covers the rentor’s liability for any damage caused to other people and/or other people’s property. It is usually limited to a maximum. The insurance is limited and there may be excess, i.e. you may be liable for any amount over and above the value of the insurance.
 

Popular International Car Rental Locations

Sydney, Australia: Opera House. Car Hire at Sydney Airport
Las Vegas Strip: Car Rental Las Vegas Airport
Disney Orlando: Car Rental Orlando Airport

Satisfied Customers

TESTIMONIALS
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All went smoothly, great price and will use again. Sherry McPhee - Belfast, U.K.
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Excellent service and saved a lot of money. - Terry Williams, Vancouver.
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I'm a regular client  now. Always good value. - J. Owens, Cape Town. ​
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