Rental car jargon, translated
Every confusing term rental companies throw at you, explained in plain English.
Additional Driver Fee
What they charge to let someone else drive. Usually $10–15/day. Some loyalty programs waive it.
CDW (Collision Damage Waiver)
Covers damage to the rental car. Not actual insurance — it’s a waiver that means they won’t charge you for damage. Usually $25–40/day.
Check with InsureItRight
Concession Fee
The fee the airport charges rental companies for operating there. They pass it to you. Usually 10–12%.
Estimate with CostItRight
Drop-off Fee / One-Way Fee
Extra charge for returning the car at a different location. Can be $50–$500+.
Energy Recovery Fee
A junk fee some companies add. Supposedly covers “vehicle licensing costs.” Usually $1–3/day.
Dispute with DisputeItRight
Fuel Service Option (FSO)
They fill the tank for you when you return it. Sounds convenient, costs 2–3x the actual gas price.
Calculate with FillItRight
Grace Period
How long after your return time before they charge for another day. Usually 30–60 minutes.
Plan with ReturnItRight
Liability Insurance / SLI (Supplemental Liability Insurance)
Covers damage you cause to OTHER people/property. Your personal auto policy usually includes this.
Check with InsureItRight
PAI (Personal Accident Insurance)
Covers medical costs for you and passengers. Your health insurance likely covers this already.
Check with InsureItRight
PEC (Personal Effects Coverage)
Covers your stuff if stolen from the car. Your homeowner’s/renter’s insurance usually covers this.
Check with InsureItRight
Prepaid Fuel
You buy a full tank upfront at a set price. Only worth it if you return the car nearly empty.
Calculate with FillItRight
Toll Pass / PlatePass
Rental company’s toll transponder. Charges a daily fee ($5–9/day) on top of actual tolls.
Underage / Young Driver Fee
Surcharge for renters under 25. Usually $20–35/day. Some companies waive it for loyalty members.
Estimate with CostItRight
Unlimited Mileage
No cap on how far you can drive. Standard for most rentals but not all.