Car hire glossary of terms

Here you will find the common words/ phrases and accompanying explanation concerning your car hire.

Additional Driver(s)

People that will operate the car rental other than the person that makes the reservation.

Every car rental company has a different policy for additional drivers. Some will charge a fee for each day of the rental, while others will charge a fee for the entire rental period. The average prices for one additional driver are about 5.00 USD per day or 15.00 USD per rental period. Most car rental companies will put a limit on the amount of additional drivers they allow. It is essential that only authorized people drive the vehicle for the contract to be valid.

Car Rental Office Hours

These are the working times for the individual car rental suppliers.

In large airports, the car rental working times are often 24 hours per day. In other cases, there will be defined working times. Car hire suppliers also look at their reservations to determine the hours of operations. This allows them to cater to specific customers. If you want to pick-up a rental car outside of the defined car rental office hours, you can incur some additional charges. If you wish to drop-off your rental car outside the office hours, there might be the option to leave the car keys in a drop box. Some companies may also charge a fee for off-hours return. If you make a reservation outside of the office working hours two situations can occur. One, you will not be able to book the car for the requested time. Two, you will be contacted about the fee for off-hours pick-up and or drop-off. The average cost for an off-hours pick-up charge can range anywhere from 15.00 USD to 60.00 USD depending on the company. If you do not wish to pay the additional fees, you will be given a full refund of any money paid.

Car Rental Supplier

This is our partner in the location that you will pick-up the car rental.

You will be informed of your independent car rental supplier when you receive your booking voucher. This is the company you will need to visit in order to pick-up your car rental. We have partnerships with the biggest and most reputable car rental suppliers as well as the local providers. Some of our most well-known partners include Avis, Budget, Dollar/Thrifty, Europcar, Hertz and Sixt.

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.

Collision Damage Waiver (CDW)

This means your liability for damage caused to the rental vehicle is relinquished if it is involved in a collision. A fee charged by the car rental suppliers to reduce the driver’s deductible price in the event of an accident.

The collision damage waiver (CDW) is not exactly an insurance plan. In reality, it is an agreement from the car rental provider to “waive” or not claim a high deductible from the renter if there is an accident causing damage to the vehicle.

When the renter purchases the waiver from the car rental supplier it reduces the deductible to a certain amount and often excludes glass (windows etc.), tyres and any towing. This amount will be held off your credit card at pickup.

There is sometimes a possibility to purchase “super collision damage waiver” which will lower the deductible to zero (0). CDW is included in all of the rental prices quoted on Globalcar’s website (unless otherwise stated).

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.

Cross Border Travel

Taking the car rental outside of the country that you started from.

Every car rental company has a different policy for this type of mobility. If you are planning to take the car rental for cross border travel, you need to be sure that it is allowed. The contract you sign may be void if you take the car outside of the country of origin. This is something that is not charged by Globalcar upon booking. The charge is payable at the car agent desk upon arrival.
With the emergence of the Schengen Zone in Europe and other friendly relationships between countries, cross border travel is often not a problem.

Damage Excess Reduction

This is an amount you pay per day to reduce the amount of Excess on the vehicle. This can include tax.


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. 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.

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.

International Driving Permit

A document that translates your current license into more than 10 different languages.

The international driving permit (IDP) is a very important document that is required for some countries. The IDP will translate your current license into a language that is acceptable for the participating country. Please note that the international driving permit is not a substitute for your license, it must be used together with your current license.

An international driving license is primary required if the renter as a license that is in a language other than Latin (i.e, Arabic, Greek, Russian or Chinese).

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.

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.

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.

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 Part 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.

This is to protect a renter in the case that the other driver files a claim following an accident.
Third party liability insurance is included in all of our car rental prices (unless otherwise stated). In the event of an accident, this insurance will cover you if you are responsible and the other driver makes a claim against you. In many places around the world it is illegal to drive without third party liability insurance. Third party liability insurance will not only protect you against claims, but it will offer you peace of mind whilst driving.

Security Deposit

An amount of money that is held on your credit card or in cash for the duration of your rental period.

The independent car rental supplier will require that you leave a security deposit in the event that you need to pay the deductible on an insurance claim. You will be refunded at the end of the rental period as long as there is not a claim for the deductible. They will charge you in the event of an accident or theft of the vehicle.