WHEN the acronyms CDW, TPC or PAI are bandied about there is a likely chance you vaguely recognise them.

Mention rental and things become a little clearer. Renowned for a love of acronyms, the rental industry and more specifically rental contracts are awash with them.

Fleet rental contracts are no different to those in the retail market and it is important that company employees responsible for signing them know the meaning of each acronym.

Skipping CDW could result in a hefty bill if the driver has a prang and not opting for TP may mean companies covering the cost of a rental vehicle if it is stolen.

Rental group Avis has produced a glossary to help fleets differentiate their TPs from their ERs. We take a look at what some of the acronyms in the glossary really mean for fleets.

CDW – Collision Damage Waiver

(known as LDW in Australia, New Zealand and USA)
IF the rental car is damaged, CDW will cover the cost of repairs to the vehicle. The fleet will have to pay an excess towards the repair costs, depending on the extent of the damage. The amount of excess applies regardless of whether the driver was at fault or not and depends on individual companies. At Avis, it is a maximum of £600. If CDW is not factored into the rental price it will be a daily charge.

TP – Theft Protection

THIS covers the cost of replacing the rental car or parts of it if it gets stolen. The fleet may have to pay an excess, which varies by country.

In the UK they may have to pay an excess up to a maximum of £600. If TP is not factored into the rental price it will be a daily charge.

ER – Excess Reduction

FLEETS can reduce the excess amount of CDW and TP to around £200 each by buying this. ER incurs a daily charge.

PAI - Personal Accident Insurance

SHOULD the driver or a passenger have an accident during the rental, this will cover accidental death, some medical expenses, assistance and rescue, and some personal effects and baggage cover. Drivers may already be covered for this in their holiday insurance. PAI incurs a daily charge.

Super CDW - Super Collision Damage Waiver

SUPER CDW reduces or eliminates the excess the fleet has to pay in the event of damage to the rental car. This is purchased when the initial rental contract is agreed.

Super TP - Super Theft Protection

SUPER TP reduces or waives the excess the fleet has to pay in the event of the car or parts of it being stolen. This is purchased when the initial rental contract is agreed.

Super PAI - Super Personal Accident Insurance

IN addition to the standard Personal Accident Insurance, this covers additional personal effects and baggage, contingency expenses and increased amounts for accidental death, loss of limbs, eyes or permanent total disablement.

TPC – Third Party Cover

(Also known as motor liability insurance or legal liability insurance)
THIS covers drivers in case they cause damage to someone, or something, including passengers and their property when using the vehicle. It is compulsory for all drivers and by law is included in the price of a rental.

It does not cover theft, or attempted theft, of the rental vehicle, theft of personal belongings from the vehicle, death or injury of the driver or damage to the vehicle.