Category: Car Rental

Car Rental Glossary

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.

Comparing Car Rental Prices Online – What You Need to Know

Searching for car rental online has never been easier with the help of the internet. You can easily search and compare prices from various car rental suppliers, often on the same website.

 

Car rental rates often vary considerably depending on what is included in the rate. Look out for those too-good-to-be-true prices – they probably are. You may think you have found a bargain, but it will be a different story when you go to pick up the rental car, only to be told you have to pay for lots of additional charges.

 

So when you are comparing car rental costs online, ensure you are comparing like with like. There are various extra charges which can push up the price of your rental car, so make sure you look out for them. Often if you add these on to that oh-so-low rate, it doesn’t look so appealing anymore.

 

What is Included

 

Most car rental websites will list the inclusions with the rental. These will vary depending on suppliers but generally standard rates include basic insurance and tax.

 

What is Extra

 

Again this will vary but look out for the following:

 

Airport Fees

 

Also known as a Premium Location Fee, you will be charged extra to pick up a rental car at an airport location. This charge varies depending on supplier and location, but in the UK for example could cost as much as 13% of the rental value.

 

Vehicle Licensing Fee

 

This is a Government imposed levy for rental cars to partially recover the registration costs. Approximate cost in the UK: GBP1.22 per day, which over a long period can add up.

 

Additional Driver Fees

 

If you want to have more than one driver for your rental car, this is often an extra charge. Daily charges range from GBP4-20 in the UK, EUR4-8 in Italy and from USD3-10 in the States.

 

Young Driver Surcharge

 

This is often charged if the driver of the rental car is under the age of 25. In Australia, this ranges from AUD13-22 per day. In France, the Young Driver Surcharge varies from EUR20-35 per day, GBP10-25 in the UK and USD5-45 in the USA.

 

Excess Reduction

 

Each rental car often comes with an Insurance Excess which is the amount you would be responsible for if the rental vehicle is damaged. This can often be a few thousand dollars but can be reduced with an optional excess reduction charge which can be paid daily to reduce your excess to a few hundred dollars or even to zero.

 

Additional Equipment

 

Things like child seats, ski racks and snow chains are often available at an extra charge.

 

One Way Rentals

 

If you want to drop off your rental car in a different city from where you picked it up, there may be a one way fee. Again, this varies depending on the supplier and destination. Ensure you ask before you pay!

 

All these extras can add up. Sometimes a standard rate may be right for you but if you are picking up at the airport and want an extra driver, for example, it may make sense for you to go with an inclusive rate.

 

Read the Small Print

 

Be sure to read inclusions carefully to see what the rental rate covers and which one is right for you. Look for possible restrictions and additional costs and find out what exactly they are before you pay. If you find a low car rental rate, make sure that the additional costs do not outweigh the savings.

 

At DriveAway Holidays, each car choice will show clearly if it is a Standard or Inclusive rate and will give you a list of what is and what is not included.

 

People often talk about the “hidden costs” of car rental, but the reality is, they are not hidden at all – you just need to know what to look for.

 

 

Confessions of a Car Rental Marketer

I get paid to sell self-drive holidays to Australians, to encourage them to take to the open roads and explore new territory behind the wheel of a rental car. I have a confession to make. I can’t actually drive.

 

Now I haven’t deliberately kept this from my employer, it wasn’t mentioned in my interview nor was it in my job description alongside having excellent communication skills, the ability to work as part of a team or to meet deadlines in a fast paced working environment. It was neither an essential nor desirable attribute.

 

I have never lied about it, but I do avoid voluntarily giving out this information about myself. I’m almost 25 for goodness sake! Kids I used to babysit have got in the driver’s seat before me. I guess I just haven’t got around to it in 7 years. I’m used to the convenience of city living and not needing to be able to drive.

 

So while I am cruising comfortably on my P plates in my car rental marketing career, I have yet to get my Learners licence to drive. The irony of the situation was pointed out to me at a recent industry function when I was talking to a marketing guru from an airline. He asked me what kind of car I drove and I said quietly that, actually, I can’t drive. “What!” he exclaimed “You work for a car rental company and you can’t drive?!” True. But, I said to him, you work for an airline, can you fly a plane?

 

You see, what I try to market or sell is not driving. We don’t sell the idea of jumping into a rental car, the exhilaration of putting the key in the ignition, turning on the engine and…well, whatever it is that comes next.

 

No, we try to sell the idea of freedom, the thought of having independence and flexibility on holidays, exploring new places, making memories and having a good time. We try to inspire people to visit places off the beaten track and discover new things.

 

So does it actually matter that I can’t drive? Do you think dog food marketers have actually tasted what they’re selling? Exactly.

 

I have travelled around the world and I have been in cars lots of times, often simultaneously, so I know the feeling of having the wind in your hair, good music in your ears and a smile on your face. I know the excitement of visiting new and foreign lands and the joy of travelling around, not being in a cramped Greyhound bus or overcrowded non-air conditioned train.

 

I have just been in the passenger’s seat, not the driver’s, that’s all.

 

Having said all that, I know that I need to learn to drive. Will I finally take the plunge and learn? Yes, most definitely, in part to aid my copywriting, to gain independence and well, to see what all the fuss about.

 

Yes, there’s all that and also that promise that my partner made about getting a shiny new Yaris when I do finally get my license. Now that is an incentive to learn.