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Car Rental Vocabulary

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Base Rate

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The initial cost of renting a car before fees, taxes, and any additional charges.

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Mileage Charge

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A fee for the distance traveled in the rental vehicle, often calculated per mile or kilometer.

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Collision Damage Waiver (CDW)

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Insurance coverage that reduces the renter's financial liability for damage to the rental vehicle.

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No-show Fee

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A charge imposed when a renter fails to arrive to pick up the reserved vehicle.

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Economy Class

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A category of rental vehicle that is typically small, fuel-efficient, and affordably priced.

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Upgrade

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Moving to a higher class of vehicle than originally booked, often at an additional cost.

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Drop-off Charges

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Fees applied when a rental vehicle is returned to a different location than where it was picked up.

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Excess

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The amount the renter is responsible for before the insurance covers the rest of the cost in the event of damage.

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One-way Rental

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A car rental where the vehicle is picked up from one location and dropped off at another.

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Rental Agreement

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A legally binding contract between the rental company and the renter outlining the terms of the rental.

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Luxury Class

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A premium rental vehicle category offering top-end comfort, features, and performance.

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GPS Navigation Charge

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An additional fee for the use of GPS navigation system provided with the rental vehicle.

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Personal Accident Insurance (PAI)

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Insurance coverage that provides medical and death benefits for the renter and passengers.

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Fuel Policy

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The terms regarding how much fuel should be in the rental car upon return, such as 'Full to Full' or 'Prepaid'.

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Early Return Fee

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A charge applied when a renter returns the rental vehicle sooner than the agreed-upon rental period.

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Blackout Period

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Timeframes in which special rates or promotions are not available due to high demand.

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Vehicle Inspection

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The process of examining the rental car for damage before and after the rental period.

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Age Surcharge

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An additional fee that may apply to renters under or over a certain age, due to higher insurance costs.

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Unlimited Mileage

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A rental term meaning there is no mileage cap and no additional fee for the distance traveled during the rental.

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Supplemental Liability Insurance (SLI)

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Optional insurance that provides the renter with an increased level of liability coverage above the basic plan.

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