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Glossary of Car Rental Terms

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Additional driver: Fee for drivers in addition to the renter named in the contract. Maximum of 4 additional drivers per rental contract.

Age restriction: Extra cost for an underage driver (as per T&Cs)

After Hours: Price of the service to pick up a car outside rental location opening hours

Airport Concession Recovery and Facility Fee: some airports charge car rental companies a fee for every customer transaction at that airport location. When airport authorities impose this fee, rental car companies operating out of that airport generally pass on this surcharge to their customers either directly or indirectly.

Airport surcharge: Mandatory charge as pick-up occurs at an airport location

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CDW: Price of the Collision Damage Waiver covering damages (as per T&Cs) occurring to the rented vehicle. Excess may apply

Charges added during rental: Refers to all charges incurred during time of rental (service charges, surcharges, taxes, and concession fees not included).

Customer Facility Charge/Use Fees: The airport requires that all car rental companies collect this fee. The money collected is used to pay for new car rental facilities.

A daily rental is for a 24-hour period. The daily rate applies when a rental does not qualify for a weekly or weekend provision.

Energy Recovery Fee (ERF): to help recover the escalating energy costs related to our business operations, we must impose a separately stated Energy Recovery Fee (ERF) to all customers at all locations. Please check for all fees that apply to your rental in the Rates section during your car rental reservation process.

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Emergency Sickness Plan (ESP): provides international car renters visiting the U.S. with medical expense coverage that protects against unexpected illness.

Excess Reduction Fee (ERF): in Australia and New Zealand only, ERF 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.

FPO: Fuel Purchase Option. Fuel purchased in advance at time of rental. No refund for unused fuel if option is selected.

Fuel charge: Price charged for the fuel you consumed when you did not return the vehicle with a full tank.

Full tank option: Price of the option you chose allows you to return your rental vehicle with an empty tank.

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Goods in transit (GIT) Coverage: the international equivalent of the U.S. Personal Accident and Personal Effects (PAE) coverage protects you and your passengers against expenses resulting from accident, injury, and loss to personal property during your car rental.

GARS/GA: stands for Government Administration Rate Supplement. It’s a fee imposed for Government car rentals.

Government Admin Rate Supplement: for U.S. Government car rentals, the government imposes a $5/day Admin Rate Supplement (GARS/GA) charge for each rental. Rental car companies pass on this surcharge to government renters either directly or indirectly.

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Hotel Concession Fee Recovery (HCFR): This fee is to reimburse the rental company for concession fees paid to the hotel for each rental. Concession Fee Recovery: Fee to reimburse the rental company for concession fees paid to all other operating authorities apart from airports and hotels specified above.

Initial Charges: Refer to charges accepted and/or added at time of initial rental.

Intercity Fee: Charges for returning car to location other than initial rental location and/or location specified in rental contract.

Late Return Fees: Fees for returning car after return time agreed to at time of rental.

Licenses & fees: Cost of the vehicle registration.

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Loss Damage Waiver (LDW): the optional Loss Damage Waiver is not insurance. It’s a coverage option that relieves renters of financial responsibility if the car is damaged or stolen while under car rental contract.

Liability Insurance Supplement (LIS): Provides liability protection up to $1,000,000 (in CA and FL up to $2,000,000 for liability only) and up to $1,000,000 of coverage for bodily injury or property claims with uninsured/underinsured motorist.

LLDW: Rental company agrees not to hold you responsible for up to $1,000 of damage to the vehicle. Available only at select locations.

One-way charge: Price charged for returning the vehicle to a different rental location from the pick- up location.

Personal Accident and Personal Effects Insurance (PAE): Protects you and your passengers against expenses resulting from accident, injury, and loss to certain personal property in your Budget car during your car rental.

personal accident insurance

Personal Accident Insurance (PAI):  provides accidental death and medical protection for you and your passengers during your car rental.

Partial Damage Waiver (PDW): Partial Damage Waiver applies to insurance replacement rentals. Rental company agrees not to hold you responsible for loss or damage to the rental car up to the amount of your personal auto insurance deductible (up to $1,000). Available only at select locations.

Personal Effects Coverage (PEC): Covers some personal belongings. Coverage limits are up to $600 per person, with the maximum coverage for all claims limited to $1,800.

Premium Emergency Roadside Assistance: Provides roadside assistance including lockouts, lost key, flat tire & mounting, and dead battery, among other services. Travel interruption reimbursement up to $1,000.

Railway surcharge: Mandatory charge as pick-up occurs at a railway location.

Refueling service: Price of the service to refuel the vehicle (in addition to the Fuel Charge).

rental agreement

A Rental Agreement (RA) is the legally binding contract that details the terms of rental that customers will sign with the supplier.

Rental Rate: The base rate for renting a car, charged on a daily, weekly, or monthly basis (hourly available in select locations; does not include taxes or fees.

Return Change Fee: Customers who are on rent who extend their rental past a grace period or change the location of their return will be charged a nominal fee.

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Service Charges/Taxes: Represent state and local taxes, as well as surcharges/service charges collected to reimburse state and local governments, airport authorities, and other government and transportation agencies, as well as additional fees.

Super LDW: Price of the Super Loss Damage Waiver reducing or eliminating the excess in case of damage/theft occurring to the rental vehicle (as per T&Cs). Only available if LDW is purchased.

Special equipment rental: Price of the rented equipment.

State/Local Surcharge: This fee is for Hertz’s recovery of taxes and fees charged by state and local governments. Usually shown with name or state or locality (i.e., “FL State Surcharge”).

Tax: Represents state and local sales tax on total rental charges.

Tourism Fee: Car rental companies are required by law to pay monthly assessments in certain cases to state tourism commissions on revenue generated at either airport or hotel rental locations. This fee has been calculated to recover such assessments on an applicable rental basis.

theft waiver

Theft Waiver (TP): Price of the Theft Waiver covering theft (as per T&Cs) of the rented vehicle. Excess may apply.

Underage Fee: Renters under 25 years old are subject to Underage Fee. The fee varies based on renter’s age, car class, and renting location. Car class restrictions apply. Excludes certain corporate accounts. Additional terms and conditions apply, see Rental Terms for details.

Vehicle Licensing Cost Recovery (VLCR): This fee is for recovery of the proportionate amount of vehicle registration, licensing and related fees applicable to a rental.

The information provided in this guide was accurate at the time of publication but is subject to change at any time. Please check your car rental company’s terms for the latest information.

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