Car Rental Glossary of Terms
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Car Rental Rental Conditions Car Rental FAQ's
Collision Damage Insurance: Included In 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 are 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 renter’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, for example up to first R10 000
of the damage.
The Theft Insurance provided by the car rental company covers theft of the
rental vehicle only. It does not cover your 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 renter’s liability for damage to the windows or
tyres. These are not covered in the Collision Damage Insurance. It is
usually charged at a 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
Every country has a minimum amount of insurance needed for someone to be
permitted to drive. This covers the renter’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.
