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The cost of car rental is made up of the following elements:

• The basic car rental.
• CDW/LDW (Collision Damage Waiver, also called Loss Damage Waiver).
• State sales tax.
• Top-up insurance.
• Additional charges for young drivers, additional drivers, infant seat rentals, etc.

For visitors to the USA or Canada from Britain it's nearly always much cheaper to take out car rental as part of a fly/drive package than to purchase it yourself in North America. If you buy car rental as part of a fly/drive package then along with your tickets you also receive a voucher which normally covers the cost of the basic car rental. Sometimes the voucher also includes some of the other cost elements, and since these are considerable you need to check the costs and what they include very carefully when comparing offers prior to booking.

CDW/LDW (Collision Damage Waiver, also called Loss Damage Waiver) is optional in most states, although in a few states it is compulsory and built into the basic car rental cost. Without CDW/LDW you could be held liable for the full value of the car to the car rental operator. CDW/LDW is costly, but in our opinion it would be foolish not to take it out. The cost of CDW/LDW is usually paid directly to the car rental operator, but sometimes it is included (perhaps as an option) in the car rental voucher issued by the tour operator as part of a fly/drive package.

You normally pay state sales tax to the car rental operator, but again this can sometimes be included in the voucher. The percentage rate of sales tax varies quite considerably between states.

Top-up insurance covers your liability with regard to third party injury and property damage, and also means you will receive compensation if you are involved in an incident with a motorist who is not insured or under-insured and who is judged to be the guilty party. You normally take out top-up insurance with an insurance company in the UK before travelling; occasionally it is offered (usually as an option) as part of a fly/drive package. Top-up Insurance is optional, but in our opinion taking it out is a very wise precaution.

There are also additional charges, normally paid directly to the car rental operator, for infant and child seat rental, young drivers and additional drivers if each of these factors apply in your case.

For more information, refer to the Car Hire page. 

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