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Not sure what a loss damage waiver is, or whether you need one for your next car rental? Want to know more about a phrase in your car rental contract? This simple glossary will help explain everything you ever wanted to know about renting a car with Drivebookers.com

Collision Damage Insurance:
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:
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 €2,000 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:
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 of €1,000,000. 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.

Complete Cover Package:
This is an insurance package that includes CDW, theft and third party insurance and reduces the excess significantly. It does not include Personal Accident Insurance or Glass/Tyre waiver. A fee for this is payable on arrival and is usually set at a daily rate. It can also include tax.

 

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