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Even for experienced travellers and users of rental cars, the terminology and definitions used by the car rental operators can be confusing. This following information attempts to explain the definitions of the most common terms in plain English.
The guide has been provided by Car Hire Assistant, The Car Hire Comparison Site. We compare prices with up to 550 suppliers, in 175 countries, with over 30,000 rental locations. The Car Hire Assistant search engine is free to use and we add nothing to the rental price.
Guide to common rental car definitions:
These definitions are provided only as a guide and it essential that you refer to the terms and conditions of your rental agreement for specific terms relative to your hire.
Collision Damage Waiver (CDW), also referred to as: Loss Damage Waiver (LDW)
If the hired car or any of its parts or accessories is damaged other than by theft, attempted theft or vandalism, while on rental, CDW limits your liability to the amount of the non-waivable excess, if any, which applies in each country, provided that you have adhered to all the terms and conditions of the Rental Agreement. CDW does not cover any damage caused as a result of theft, attempted theft or vandalism.
If the hired car or any of its parts or accessories is damaged other than by theft, attempted theft or vandalism, while on rental, CDW limits your liability to the amount of the non-waivable excess, if any, which applies in each country, provided that you have adhered to all the terms and conditions of the Rental Agreement. CDW does not cover any damage caused as a result of theft, attempted theft or vandalism.
Theft Waiver (TW)
It is an insurance offered by the car rental firm limiting your liability to the excess amount in case of theft of the vehicle. This does not over negligence, if for example you can't return the ignition key, or you left it in an unsafe place, you could be liabel for the full cost of the vehicle, as would be the case with most domestic car insurance policies.
It is an insurance offered by the car rental firm limiting your liability to the excess amount in case of theft of the vehicle. This does not over negligence, if for example you can't return the ignition key, or you left it in an unsafe place, you could be liabel for the full cost of the vehicle, as would be the case with most domestic car insurance policies.
Third Party Liability Protection
Offers protection against any third pary liability such as damage to another vehicle or personal injuries to an individual not travelling in the hire car. TPLP typically does not have an excess or deductible amount to pay.
Offers protection against any third pary liability such as damage to another vehicle or personal injuries to an individual not travelling in the hire car. TPLP typically does not have an excess or deductible amount to pay.
- Super Collision Damage Waiver (SCDW)
- Covers tyres, roof and windscreen.
Personal Insurance (PI) Insures against the cost if you accidentally kill yourself or a passenger. (Also see ALI below)- Personal Effects Cover (PEC)
- Covers property that has been stolen from a vehicle.
- Additional Liability Insurance (ALI)
This is an optional insurance that protects the hirer and other other authorised drivers against claims made by third parties for personal injuries, death and property damage caused by the use of or the operation of the rental car. - © Car Hire Assistant
