Car Hire Insurance Glossary

Car Hire Insurance Glossary

When it comes to hiring a car, you can often be blinded by lots of jargon. There are many different terms/phrases associated with car hire relating to insurance, excess taxes and more. If you’re baffled by all of this car hire jargon it can be hard to make the right decision and you can often be unsure as to what you’re agreeing to.

In order for you to be fully informed while making your choice, we have created this car hire glossary to provide you with a better understanding.

AD – Additional driver

Airport surcharge – this is an additional charge that car hire customers sometimes have to pay at popular airport locations at time of pick up

Annual car hire excess insurance – excess insurance cover for a whole year. If you frequently hire cars abroad this policy covers you annually so that you don’t have to repurchase each time you travel.

Car hire excess – if you have an accident in your hire car or any damage occurs, you will be expected to pay a certain amount towards the total repair or replacement cost. This is called car insurance excess. How much you have to pay will depend on the hiring company.

Car hire excess insurance – this is an optional insurance policy that protects you against having to pay the high excess charges if your hire vehicle is stolen or damaged.

Collision Damage Waiver – this is also referred to as ‘loss damage waiver’ and it protects you from any claim (minus the excess amount) should your hire car get damaged. It’s important to note that a Collision Damage Waiver is not insurance.

Comprehensive cover – the highest level of cover you can purchase. It covers you and your vehicle for theft and damage, towing costs, administration and handling costs.

Cross-border – when you intend on travelling between different countries with your hire car. There’s usually an additional charge for this.

Personal Accident Insurance – this is extra optional insurance that you may be offered when you pick up your hire vehicle. It covers you, the drive and all additional drivers plus passengers in the hire car for death, disability and medical expenses.

Young drivers surcharge – this is a fee applied to a car hire purchase if the driver is under a specified age. Not all car hire companies apply this but when using a car hire comparison site, you usually have to declare whether you are over the age of 25 or not for this purpose.

For more information about car hire excess, check out our recent blog about how car hire excess insurance works.