Questor Insurance Travel Blog


Car Hire Jargon explained

Often when hiring a car or purchasing car hire / car hire excess insurance it can become quite confusing with all the different abbreviations they use. Here’s a list of the most common ones and an explanation of what it means to help you out…

 

car hireCDW – Collision Damage Waiver – insures the vehicle against damage; however don’t assume this will cover everything. Normally, this excludes damage to windows, tyres, undercarriage and roof. You’ll normally be left liable for an ‘excess’ otherwise known as a ‘deductible’.

LDW – Loss Damage Waiver – effectively the same as Collision Damage Waiver. Normally this includes theft protection.

SCDW – Super Collision Damage Waiver – damage excess cover which either removes or reduces your liability for any excess.

TP – Theft Protection – insures the vehicle in the event of theft. Be aware, an excess may apply.

PAI – Personal Accident Insurance – passenger insurance for injury or death.

ALI – Additional Liability Insurance – an optional insurance to protect authorised drivers if they injure someone or damage someone else’s property.

PEP/PEC: Personal Effects Protection/Coverage insures the personal belongings of the renter and the immediate family members who are travelling with the renter.

SLI/EP: The Supplemental Liability Insurance / Extended Protection option covers the renter's liability to third parties, resulting from an automobile accident in a rental vehicle to a specified maximum value for each occurrence.

CWP - By taking out cancellation waiver protection at the time of booking, a cancellation charge is not payable should you choose to cancel your booking prior to the collection date.

IDP - An International Driving Licence, or IDP, allows you to drive a private motor vehicle abroad when accompanied by a valid UK driving licence.

Out of Hours - In most locations flights will be met and cars supplied outside of normal working hours. However, at some locations there may be an additional charge for this service which is payable locally. Please note that in the event that a flight is delayed, causing the car pick-up to fall outside normal working hours, the additional charge will be made.

LI - Much like your own vehicle insurance, Liability Insurance covers any claims that may be made by a third party as a result of an accident whilst you are driving the hire car. Property damage and personal injury are included in this.

ERF - In Australia and New Zealand only, Excess Reduction Fee is a coverage plan that helps reduce the cost of excess damage to the car during your car rental. Terms depend on the vehicle category and the age of the driver. Similar to Loss Damage Waiver (LDW) in the U.S.

IPT - A tax on general insurance premiums, including premiums for car insurance. The tax is included in the price of your car insurance premium.

If you are hiring a car, don’t forget your car hire excess insurance, click here for your free quote

Date Created: 27 October 2015 by Elisa Overy

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