Glossary
Car rental, in plain English.
The words car rental runs on, for travelers and the trade: cover, fees, rates, codes and how rentals get sold. 65 terms, each with one home and a review date.
A
- ACRISS codeA four-letter code that describes a rental car's size, body type, transmission and fuel/air conditioning, e.g. CDMR.
- Additional driver feeA charge for each extra person allowed to drive the rental car, usually per day with a cap per rental.
- Airport surchargeAn extra charge on rentals picked up at an airport, covering the higher cost of operating there.
- Automatic vs manualWhether the car changes gears by itself (automatic) or you use a clutch and gear stick (manual).
C
- Car classThe size and type group a rental is booked in, such as compact automatic, rather than a specific model.
- Child seat / booster seatA seat for babies or children, rented from the rental company or brought from home; local law sets which kind a child needs.
- Collision Damage Waiver (CDW)An agreement where the rental company waives some or all of its right to charge you for damage to the car, usually above an excess. It's not insurance.
- CommissionA percentage of the rental price paid to the agent or partner who made the sale.
- Concession recovery feeA fee at airport locations that recovers part or all of what the rental company pays the airport for the right to operate there.
- Credit card rental coverageRental car damage cover that some credit cards provide when you pay for the rental with that card.
- Cross-border feeA charge for taking the rental car into another country, where the rental company allows it.
- Customer Facility Charge (CFC)A charge many airports require on rentals to pay for rental car facilities and shuttles; the rental company collects it for the airport.
D
- Damage administration feeA fee for handling a damage claim, charged on top of the repair cost.
- Debit card restrictionLimits many rental companies place on using a debit card, especially for the security deposit.
- Deductible vs excessSame thing, two words: the most you pay toward damage or theft of the rental car before the rental company's waiver covers the rest.
- Diminished valueA claim for the drop in a car's resale value because it's been in an accident, even after repair.
- Dynamic Currency Conversion (DCC)An offer at payment to be charged in your home currency instead of the local one, at an exchange rate set by the merchant's provider.
E
F
- Free cancellationYou can cancel without a fee up to a stated deadline before pickup.
- Fuel policyThe rule for how much fuel the car has at pickup, how much it should have at return, and what you pay if it doesn't.
- Fuel purchase option (prepaid fuel)An optional extra where you buy a tank of fuel from the rental company at pickup and return the car without refueling.
- Full to emptyFuel policy where you pay for a full tank at pickup and can return the car with any fuel level, usually with no refund for what's left.
- Full to fullFuel policy where you pick up with a full tank and return it full; if it isn't full, the rental company refuels it and charges you.
G
- Global Distribution System (GDS)A large reservation network that travel agents use to book flights, hotels and rental cars from many companies in one place.
- Grace periodA short window after the agreed return time before late charges start.
- Gross rateA price that already includes the seller's commission; the seller keeps its share and passes the rest to the rental company.
I
L
- Late returnReturning the car after the agreed time; usually charged by the hour or day once the grace period ends.
- Loss Damage Waiver (LDW)A waiver covering damage to and theft of the rental car, common in the US and Canada; it can come with a deductible or none.
- Loss of useA charge for the rental income lost while a damaged car is off the road being repaired.
M
- Markup / marginMarkup is profit as a share of cost; margin is profit as a share of the selling price. Same profit, different percentages.
- Merchant of RecordThe business that legally sells to the customer and charges their card; its name appears on the card statement.
- Mileage capA limit on the distance included in the price; each mile or kilometer over it is charged at a set rate.
N
O
- Off-airport locationA rental office outside the airport grounds, usually reached by shuttle bus.
- One-way feeAn extra charge for returning a rental car to a different location than where you picked it up.
- Online travel agency (OTA)A website or app that sells travel from many companies, such as flights, hotels and rental cars, in one place.
- Or similarYou're booking a class of car, not a specific model; the car shown is an example from that class.
P
- Pay-at-counter rateA rate where you reserve now and pay the rental company at pickup.
- Personal Accident Insurance (PAI)Optional cover that pays medical and accident benefits for the driver and passengers after a crash in the rental car.
- Pre-authorizationA temporary block on your card for an amount the merchant may charge later; money is set aside, not taken.
- Prepaid rateA rate you pay in full when you book, rather than at the rental counter.
- Primary coverageCover that pays first, without you having to claim on your own auto insurance.
R
- Refueling chargeWhat the rental company charges to refill a car returned with less fuel than the policy requires.
- Rental car centerA single building at an airport where many rental companies share counters and garages, usually reached by shuttle or train.
- Rental extensionKeeping the car longer than booked, agreed with the rental company before the original return time.
- Roadside assistanceHelp if the car breaks down or you get stuck: towing, jump starts, lockouts, flat tires.
S
- Secondary coverageCover that pays only what your other insurance doesn't, after you've claimed on that first.
- Security depositAn amount the rental company holds on your card at pickup and releases after the car comes back without new charges.
- Shuttle locationA pickup where the rental company collects you by bus or van and drives you to its office.
- Super CDW / excess reductionAn optional upgrade that cuts your excess, often to zero, on top of the basic damage waiver.
- Supplemental Liability Insurance (SLI)Optional US cover that raises your liability protection for injury or damage you cause to other people or their property.
T
- Theft Protection (TP)Limits what you pay if the rental car is stolen, usually down to a theft excess.
- Third-party liabilityCover for injury to other people and damage to their property that you cause while driving.
- Tire and Glass Protection (TGP)Optional cover for damage to tires, windows and the windshield, which basic damage waivers often exclude.
- TollA charge for using certain roads, bridges or tunnels; in a rental, often billed later by the rental company with a fee.
- Travel agentA person or business that books travel for customers and is usually paid a commission by the travel company.
U
No term matches that yet. Try a shorter word or an abbreviation (CDW, GDS), or check the FAQ.