Car Rentals Australia has put together the below glossary to assist you with common car rental terms. If you have any questions please visit our FAQs page or feel free to contact us for assistance.
Rental Period
Your car rental period commences at the time of collection through to the drop off time. Rental periods are based on 24 hours from the time of pick up, and include 1 hour grace period. Once 3 hours are exceeded another days rental is charged.
Third Party
Provides cover against bodily injury to persons other than the driver of the rented car and property damage to anything other than the rental vehicle and its contents.
Full Comprehensive Insurance with a Standard Liability
Covers the rental vehicle in the event of a single or multi vehicle accident but usually carries a high financial responsibility.
Liability
Also known as excess, this is the amount the client is financially responsible for, in the event the rental vehicle is damaged (whether the driver is at fault or not).
Collision Damage Waiver (CDW)
Optional charge offered by the car rental company to reduce or waive multi vehicle accident liability. An excess usually applies and the amount varies between companies.
Premium Protection Package (PPP)
Optional charge offered by the car rental company to reduce or waive multi and single vehicle accident liability. An excess usually applies and the amount varies between companies.
Pre-Authorisation (Security Deposit)
A pre-authorisation is the amount frozen in the client’s credit card at time of vehicle collection. The amount frozen varies between companies. This freeze of funds is done to cover such incidentals as the vehicle being retuned not full of fuel, loss of keys, damage to the rental etc.
One Way Fee
This fee is imposed to cover the costs of returning the vehicle back to the originating location. Some companies charge for one way fees between airport and city locations within the same city.
Premium Location Surcharge/Location Service Charge
Charge applied by car rental companies at selected airport, city and railway locations. This is to cover such expenses as Airport taxes.
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.
Additional Driver
Additional to the main driver, registered and listed on the Rental Agreement. Generally only 3 extra drivers can be added to a contract.
Young Driver Surcharge
Surcharge payable by young drivers under the age of 25. Typically in Australia the driver must be at least 21 years old to rent a car.
Senior Driver Surcharge
Surcharge payable by senior drivers over a specific age.
Sealed Road
A road sealed with a hard material such as tar, bitumen or concrete.