Hiring a car abroad should feel straightforward, yet many travellers run into confusing jargon at the rental desk. This A to Z glossary explains the most common car hire and excess terms in plain English. It’s ideal for first time renters or anyone who wants to avoid unexpected costs. If you want extra protection from high excess charges, you can also get a quote for car hire excess insurance from ReduceMyExcess.
A to Z glossary
A
ACRISS code
A four letter code that describes a rental car’s size, type, transmission and fuel or air conditioning features. Helps you understand what you are booking so you can choose the right size hire car for your needs.
Additional driver
Sometimes referred to as the authorised driver. This is anyone added to the booking who is allowed to drive the hire car. This often comes with an extra fee. You can add up to eight additional drivers with a ReduceMyExcess excess insurance policy.
Airport surcharge
A fee added to rentals collected at an airport due to higher operating costs.
B
Basic cover
Standard insurance included in many rentals. Usually limited and comes with a high excess.
Body style
The general shape of the vehicle, such as hatchback, saloon, estate or SUV.
Breakdown assistance
Support if the car stops working. Basic plans often include towing to a safe location. Enhanced plans may include help with flat tyres or lost keys..
C
CDW (Collision Damage Waiver)
Reduces the amount you owe if the car is damaged, but does not remove the excess and often excludes tyres, windscreens and the underbody.
Cross border travel
Taking the hire car into another country. Sometimes allowed, sometimes restricted or charged as an extra.
Credit card hold
A temporary amount blocked on your card to secure the excess and other potential charges.
Car category or class
The group your car sits in, such as Mini, Economy, Compact or SUV. You book the category, not the exact model.
D
Deposit
A fixed amount held against your rental. Returned if the car is brought back as agreed.
Damage report
A document noting all marks on the car before you drive away. Always check it and take photos for your own record.
E
Excess
The amount you may have to pay if the hire car is damaged or stolen.
Excess insurance
A separate policy that refunds the excess you are charged by the rental company after eligible incidents.
Excess insurance
Some countries have specific rules such as using warning triangles, reflective vests or mandatory local breakdown services.
F
Fuel policy
Rules about how you return fuel. Common options include full to full, full to empty or pre purchased fuel.
Fair wear and tear
Normal signs of use, such as minor marks or small scuffs. Rental companies should follow recognised guidance when assessing this.
G
Grace period
A small window of time after your official return time where charges may not apply. Not all companies offer it.
GPS or navigation device
Often a paid extra, unless built into the car.
H
Hold (pre authorisation)
A temporary block on your card for the excess amount.
Hybrid vehicle
A car that combines a petrol engine with electric battery power. These are growing in availability but may be limited in some regions.
I
IDP (International Driving Permit)
A document some countries require alongside your UK driving licence.
J
Journey restrictions
Limits on where you can drive. For example no ferries, no unpaved roads or no long distance travel.
K
Key cover
A type of protection that reimburses you if keys are lost or damaged. Often included in standalone excess insurance rather than at the desk.
L
LDW (Loss Damage Waiver)
Usually a mix of CDW and Theft Protection. Reduces what you owe if the car is damaged or stolen.
Local taxes
Extra charges applied by the region or country. They vary depending on location.
M
Mileage limit
A cap on how far you can drive. Extra miles are charged. Some rentals offer unlimited mileage.
Misfuelling
Accidentally filling the tank with the wrong fuel. Many excess insurance policies cover the cost of repair.
N
No show fee
A charge if you fail to collect your car without cancelling in time.
O
One way rental
Collecting your car in one place and dropping it off somewhere else. Often includes a one way fee.
Out of hours charge
A fee for collecting or returning the vehicle outside standard opening hours.
P
Premium location fee
An extra cost for rentals from prime locations, such as airports or city centres.
Pre purchase fuel
Buying fuel in advance from the rental company. Refund rules vary.
Q
Quote
Your price estimate based on your travel dates, location and preferred vehicle. This can change if optional extras are added at the desk.
R
Roadside recovery
Help if the car needs towing or you break down. Some policies only cover towing to the nearest safe location.
Refuelling charge
A fee added if you return the car with less fuel than agreed.
S
Security bond
Another name for a deposit or hold.
Surcharge
Any additional fee, such as young driver surcharge, additional driver fee or airport surcharge.
T
TP (Theft Protection)
Reduces how much you owe if the car is stolen.
Towing costs
Charges for recovering the vehicle after a breakdown. Many excess insurance policies cover these.
U
Unlimited mileage
No distance limit. Common on many rentals but not always included.
V
Vehicle category
The classification such as Mini, Compact or Full Size. Helps set expectations for luggage space and car size.
Vehicle registration document
Proof of the vehicle’s identity and legal status. Usually kept with the hire company, not the driver.
W
Windscreen cover
Specific protection for windscreen damage. Often excluded from basic CDW.
Wear and tear
Minor signs of everyday use that should not lead to extra charges.
X
Extra equipment
Add ons like child seats, snow chains or GPS.
Y
Young driver surcharge
A fee for renters under a certain age, usually 25. Amounts vary by country.
Z
Zero excess
A policy or waiver where you owe nothing if the car is damaged or stolen. Check for exclusions.
FAQs
Yes. CDW still leaves you with a remaining excess. Excess insurance refunds this after eligible claims.
Some rentals offer unlimited mileage, while others use strict caps or regional limits. Always check your booking.
Yes. As long as your card can hold the deposit, you can decline their waivers.
This secures the excess amount and covers potential unpaid charges.
Hiring a car soon? Protect yourself from high excess charges and have clear support if something goes wrong with a ReduceMyExcess policy. Get a quote.
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