Car rental can sometimes be a little confusing with lots of phrases being thrown around. To help you out, we have put together a glossary which will hopefully help with your next car rental booking.
Additional Driver: Additional to the main driver, registered and listed on the Rental Agreement. May be an extra charge for an additional driver, depending on the supplier.
Additional Liability Insurance (ALI): Provides additional protection for bodily injury or death plus property damage.
Airport Fee: Charge applied by airport authorities for terminal and off terminal locations. In most cases, this charge is also applied to additional charges, such as one way fees, fuel option, child seat rental etc which are not included in the daily rate and are paid at the counter.
Collision Damage Waiver (CDW): Covers the rental vehicle in the event of accidental damage to the rental vehicle other than by theft or attempted theft. An excess usually applies and the amount will vary depending on the pick up country and/or vehicle type.
Excess Reduction (ER): Optional charge offered by the car rental company to reduce or waive the insurance excess in the event of an insurance claim against damage or theft.
Gazetted Roads: A sealed or unsealed road regularly maintained by a local, state or government body or council.
Insurance Excess: The amount the client is responsible for in the event the rental vehicle is damaged (whether the driver is at fault or not) or stolen.
Loss Damage Waiver (LDW): Covers the rental vehicle in the event of accidental damage and theft. An excess usually applies and the amount will vary depending on the pick up country and/or vehicle type.
One Way Fee: This fee is imposed to cover the costs of returning the vehicle back to the originating location. In Australia & USA, charges may apply between cities within the same State and renting between States. Some countries charge for one way fees between airport and downtown locations within the same city.
Personal Accident Insurance (PAI): Covers the driver and additional passengers of the rental vehicle for personal and physical injuries incurred in an accident.
Premium Location Surcharge/Location Service Charge: Charge applied by car rental companies at selected downtown and railway locations. This additional item also includes the Airport Fee. In most cases, this charge is also applied to additional charges, such as one way fees, fuel option, child seat rental etc which are not included in the daily rate and are paid at the counter.
Rental Period: Your car rental period starts when you pick up the rental car and ends when you drop it off. Rental periods are based on 24 hours periods from the time of pick up – so, for example, from 9am on a Friday to 9am the following day is charged as a one day rental.
Sealed Road: A road sealed with a hard material such as tar, bitumen or concrete.
Security Deposit: Amount frozen on the client’s credit card at time of collection. The amount frozen is usually the full insurance excess amount. However, if an insurance excess is not applicable or the full excess is not frozen then an amount may still be frozen for incidentals such as fuel bond, optional charges, loss of keys etc.
Senior Driver Surcharge: Surcharge payable by senior drivers over &/or between a specific age.
Theft Protection (TP): Covers the rental vehicle in the event of theft, attempted theft or vandalism. An excess usually applies and the amount will vary depending on the pick up country and/or vehicle type.
Third Party: Provides coverage against bodily injury to persons other than the driver of the rented car and property damage to anything other than the rental vehicle and contents of same.
Vehicle Licensing Fee/Vehicle Road Registration Fee: Government imposed levy for each rental car in the car provider's fleet. Charge to partially recover the vehicle registration costs.
Young Driver Surcharge: Surcharge payable by young drivers under a specific age.
24.3.09
Car Rental FAQs Part 1
Q. Why take a ‘driving holiday’?
A. A drive holiday gives you the freedom and flexibility to decide on where you travel and what you see and do. You are in charge of how much time you wish to spend at a particular attraction. You have the independence to move around as much or as little as you like. A drive holiday allows you to discover so much more as a car will allow you to drive through the little villages in out of the way places.
Q. How is car rental charged?
A. Car rental is based on 24 hour periods and charged accordingly. If you pick up a car at 9am on Thursday and return at 9am the following day, this is one 24 hour period and therefore a one day booking.
Q. Is it cheaper to pre-book my car rental or should I book when I arrive?
A. Pre-booking will save you money almost every time! With a wholesaler like DriveAway Holidays, you receive the benefit of our purchasing power. Our prices with the major car rental suppliers are considerably lower than walking in off the street in a foreign country to rent a car. In addition you are pre-paying in Australian dollars so the risk of fluctuations in the currency are reduced.
Q. How does a prepaid rental work?
A. The booking is made in advance, paid for and a voucher is issued. The voucher is then used as payment when you go to pick up the car from the supplier.
Q. What additional extras will I have to pay?
A. It depends on what the rental covers. DriveAway Holidays in most cases include all mandatory charges, like road taxes or airport surcharges. Many optional charges are applicable such as young or additional drivers, Insurance Excess Reduction or extra equipment like child seats. Be sure to check out rate inclusions – first when you are choosing your vehicle online and when you have made your booking (the inclusions will be on your voucher).
Q. What happens when I pick up the car?
A. Present the rental voucher, a valid drivers license and a credit card for a security deposit. A passport may also be required depending on the supplier and location. Any additional charges will be explained as well as the conditions of the rental. A signature will be required to accept or decline additional charges and to acknowledge that the rental conditions are understood.
Q. What does the supplier do with the renters credit card?
A. It varies depending on the supplier – they may freeze a specific amount as a deposit, an imprint may be taken as a deposit or an amount may be charged to cover the security deposit and then refunded on the return of the vehicle. In some instances the bond can be paid in cash – check with the supplier/broker when you book.
Q. Will there be fuel in the vehicle?
A. Yes, there should be enough to get you on your way. Different companies have different policies regarding fuel – most will supply a full tank and require the car to be returned with a full tank of fuel, otherwise the renter is charged the difference. Some companies provide minimum fuel and is to returned as the renter wishes.
Q. What is a Pre-Paid Fuel Option?
A. Most car rental companies provide a full tank of fuel and will charge you for re-fuelling the vehicle if it is not returned with a full tank. By accepting a Pre-paid fuel option you are agreeing to pay a pre-determined price for fuel regardless of whether you return the vehicle with a full, partially full or empty tank. This means you won’t need to search for a petrol station before you return the car, but there is no refund for any fuel remaining in the tank.
Q. Should I check out the condition of the rental car before driving away?
A. Yes, it is a good idea to check the vehicle before you leave the depot. Any damage or unusual dents/scratches should be noted on the contract before leaving.
Part 2 coming soon!
A. A drive holiday gives you the freedom and flexibility to decide on where you travel and what you see and do. You are in charge of how much time you wish to spend at a particular attraction. You have the independence to move around as much or as little as you like. A drive holiday allows you to discover so much more as a car will allow you to drive through the little villages in out of the way places.
Q. How is car rental charged?
A. Car rental is based on 24 hour periods and charged accordingly. If you pick up a car at 9am on Thursday and return at 9am the following day, this is one 24 hour period and therefore a one day booking.
Q. Is it cheaper to pre-book my car rental or should I book when I arrive?
A. Pre-booking will save you money almost every time! With a wholesaler like DriveAway Holidays, you receive the benefit of our purchasing power. Our prices with the major car rental suppliers are considerably lower than walking in off the street in a foreign country to rent a car. In addition you are pre-paying in Australian dollars so the risk of fluctuations in the currency are reduced.
Q. How does a prepaid rental work?
A. The booking is made in advance, paid for and a voucher is issued. The voucher is then used as payment when you go to pick up the car from the supplier.
Q. What additional extras will I have to pay?
A. It depends on what the rental covers. DriveAway Holidays in most cases include all mandatory charges, like road taxes or airport surcharges. Many optional charges are applicable such as young or additional drivers, Insurance Excess Reduction or extra equipment like child seats. Be sure to check out rate inclusions – first when you are choosing your vehicle online and when you have made your booking (the inclusions will be on your voucher).
Q. What happens when I pick up the car?
A. Present the rental voucher, a valid drivers license and a credit card for a security deposit. A passport may also be required depending on the supplier and location. Any additional charges will be explained as well as the conditions of the rental. A signature will be required to accept or decline additional charges and to acknowledge that the rental conditions are understood.
Q. What does the supplier do with the renters credit card?
A. It varies depending on the supplier – they may freeze a specific amount as a deposit, an imprint may be taken as a deposit or an amount may be charged to cover the security deposit and then refunded on the return of the vehicle. In some instances the bond can be paid in cash – check with the supplier/broker when you book.
Q. Will there be fuel in the vehicle?
A. Yes, there should be enough to get you on your way. Different companies have different policies regarding fuel – most will supply a full tank and require the car to be returned with a full tank of fuel, otherwise the renter is charged the difference. Some companies provide minimum fuel and is to returned as the renter wishes.
Q. What is a Pre-Paid Fuel Option?
A. Most car rental companies provide a full tank of fuel and will charge you for re-fuelling the vehicle if it is not returned with a full tank. By accepting a Pre-paid fuel option you are agreeing to pay a pre-determined price for fuel regardless of whether you return the vehicle with a full, partially full or empty tank. This means you won’t need to search for a petrol station before you return the car, but there is no refund for any fuel remaining in the tank.
Q. Should I check out the condition of the rental car before driving away?
A. Yes, it is a good idea to check the vehicle before you leave the depot. Any damage or unusual dents/scratches should be noted on the contract before leaving.
Part 2 coming soon!
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