Glossary of common terms of reference

Here is a glossary and explanation of various terms and charges which are often referred to or applied by car rental companies.

• Accident Administration/Claims Handling Fee
  This fee is charged in all cases of damage or theft irrespective of what level of waiver has been taken.
  
  Added explanation: This fee covers the administration costs of processing the claim and assessors’ fees.
   

• Additional Driver and Additional Driver Fee
  This applies when there is more than one driver. Note that all drivers must be listed on the applicable rental agreement.
  The Additional Driver Fee is not ‘insurance’ and applies in the event that an additional driver is required. If an unlisted driver is involved in an accident or theft of the vehicle occurs, the renter will be liable for the full damage and/or replacement costs.
  
  Added explanation: When additional drivers are involved, generally there is a significant increase in administration and vehicle retrieval costs, thus this charge.
   

• Airport Surcharge
  All airport location rental companies apply an Airport Surcharge on every car rental agreement check-out.
  
  Added explanation: The Airport Company of SA (ACSA) subjects car rental operators to additional rent charges to trade from these locations. Instead of applying these additional costs across all rates, they are applied to where the expense is incurred and are generally around 9% of the Time and Kilometer rates of the rental contract.
   

• Collision Damage Waiver CDW)
  Refer to ‘Waivers’ section
   

• Damage Waiver (DW)
  Refer to ‘Waivers’ section
   

• Delivery and Collection Charges
  In the event that a rental vehicle is requested to be delivered and/or collected from the renter’s venue of choice, a charge is applied. The amount varies per the distance travelled and generally, extra charges are applied after hours, on Public Holidays and over weekends.
  
  Added explanation: There are additional manpower and second vehicle costs incurred when delivering and collecting vehicles.
   

• Driver’s Licence
  Renters must be in possession of a valid, unendorsed local or international driver’s license and this must be produced at time of rental. The minimum age limit for rental companies varies, however the following is most often applied:
  
  The minimum age for rental is 23 years when payment is made by accepted credit card, Visa or Mastercard. When a Diners or Amex card is used, the minimum age is 21 years.
  
  Where payment is made by cash, the renter is required to be 25 years or older. A driver’s licence must have been valid for a minimum period of five years.
  
  Should an “Underage” person request to rent a car, if approved by the rental station manager, an Underage Driver Fee may be applied.
  
  Added explanation: It is a legal requirement that Drivers License details are entered onto rental contracts. Drivers’ licences must be carried on all persons at all times whilst driving in South Africa.
   

• Loss Waiver (LW) / Theft Loss Waiver (CDW)
  Refer to ‘Waivers’ section
   

• Minimum Rates / Period Charge
  Rates are calculated for a minimum period of 24 hours from time of pick-up to time of drop-off.
   

• One-Way Rental Fees
  Most car rental operators allow one-way movement between rental stations within SA’s borders free of charge. However, there are instances when One-Way Rental Fees apply so always check with your reservation and/or renting location. Generally, vehicles may not be dropped off at centres outside the country’s borders. Refer to section on ‘Over Border Rentals’.
  
  Additional explanation: Sometimes there is a high one-way flow of vehicles into or out of a specific area and increased costs are incurred to move vehicles to areas where there is a demand. In these instances, one-way rental fees may apply so check with your rental company at the time of making your reservation.
   

• Over Border Rentals
  Generally, car rental companies do not allow vehicles to be driven outside SA borders. However, any renter wishing to enter a Neighboring Country must be in possession of a Letter of Authority from the car rental operator. Note that with most rental companies, for rentals originating in SA and driven into neighboring countries, the Waiver and Liability conditions of the country being visited will apply. Vehicles entering Namibia are subject to road tax.
   

• Personal Accident Insurance (PAI)
  If purchased - and in the event of specific injuries sustained as a result of an accident in a rented vehicle, within the agreed rental period - Personal Accident Insurance (PAI) extends a limited financial benefit to the renter and the passengers in the vehicle.
  
  Purchase of personal accident insurance (PAI) as indicated on the rental agreement, constitutes an acceptance of the benefits of the personal accident insurance policy and other accompanying arrangements, if any, procured by the company for the renters benefit - but subject to all the terms and conditions of that policy and the other accompanying arrangements, if any. The rental company itself shall not under any circumstance have any liability to the renter for any of the benefits under that policy.
  
  Details of the extent of cover and the policy are available from the renting company’s head office, brochure and/or website and the renter shall in any event, be deemed to be aware of and accept all the terms and conditions of the policy.
   

• Petrol
  Petrol is excluded in car rental rates. Cars are delivered with a full tank of petrol and the customer is charged for refueling upon termination of rental. Fuel consumption is gauged from rental station to rental station.
   

• Rental Contract Fee
  Most car rental operators apply a once-off Rental Contract Fee per rental agreement.
  Added explanation: There is a legal requirement to store documents for a period of five years and the cost of administering, storing and retrieving documents necessitates an amount be charged per rental contract.
   

• Theft Loss Waiver (TLW) / Loss Waiver (LW)
  Refer to ‘Waiver’s section
   

• Traffic Fine Administration Fee
  Most car rental companies apply a fee which is charged in the event that the car rental company receives a traffic fine, incurred by the renter but not settled by the renter. It does not replace the fine amount which the renter must settle directly with the relevant traffic authority.
  
  Added explanation: Due to the administration and additional information required by the new NATIS Traffic Fine System and the traffic law enforcement authorities when handling traffic fines, this fee covers these expenses accordingly.
   

• Tourism Levy
  A 1% fee based on the Time and Kilometre charges is payable by all car rental companies.
  Added explanation: Airlines, hotels, car rental operators and other travel and tourism-related industries contribute to a Tourism Marketing Fund administered by Government and Business (Tourism Business Council of SA). This is charged to the renter and passed on in full to TBCSA.
   

• Valet
  In the event that the interior of the vehicle has been soiled or market, a fee for Valet cleaning will be charged accordingly.
   

• Value Added Tax
  All charges reflected on rates’ brochures and website rates and tariff pages are inclusive of government’s 14% VAT.
   

• Waivers
  Waivers are offered to the renter and, if purchased, reduce the renter’s liability/responsibility for costs relating to accident damage and/or theft (in full or partial) to the rented vehicle.
  
  Values of the waivers offered differ according to the type of vehicle and according to which level of waiver (eg. Standard Waiver cover or Super Waiver cover) is requested. The renter should note that even with the purchase of a Waiver, in the event of an accident or theft, generally there is an amount for which he/she is liable. This is often referred to as the Excess or renter’s ‘Responsibility’.
  Should the waiver options be declined, the renter will be held liable for the full costs in the event of accident damage and/or theft.
  
  Breach of terms and conditions of the rental agreement will also render the renter liable for all costs in the event of accident damage and/or theft.
   

• Weekend Rental
  These are rentals which are checked out on a Friday, Saturday or Sunday for a minimum of two days and maximum of 4 days, but which are not returned later than the Monday following the check-out.
  
  Many companies apply the following to weekend rentals:
  > the excess/liabilities are often double
  > no additional drivers are permitted

Added explanation: Car rental risk trends indicate a higher volume of accidents and theft-related incidents of weekend rentals. The industry philosophy of charging where the expenses are incurred applies hereto.