Renting a Car – Understanding the Contract
Welcome to Hello English! If you’re renting a car in the US, understanding the rental contract in English is essential to avoid surprises like extra fees or insurance issues. This lesson gives you a realistic conversation and essential vocabulary to help you read and discuss your rental agreement with confidence.

Watch this short, realistic conversation between a customer and a rental agent. Perfect for listening practice!
Car Rental Conversation
Characters:
• David – the customer
• Maya – the rental agent
David: Hi!
Maya: Hello! Ready to pick up your car?
David: Yes, I am.
Maya: Great! Please review the contract first.
David: What does “collision damage waiver” mean?
Maya: It means you won’t pay for damage in an accident.
David: Is it required?
Maya: No, but it’s highly recommended.
David: Got it. What about mileage?
Maya: Unlimited—no extra charge.
David: And the fuel policy?
Maya: Return it full, or we’ll charge you.
David: Okay, that’s clear.
Maya: Sign here, please.
David: Done.
Maya: Keys are in the car—parking lot B.
💡 This dialogue is perfect for audio or video practice! It’s set at a US car rental counter and uses short, clear sentences with essential terms like “collision damage waiver,” “unlimited mileage,” and “return it full.” The pacing is calm and practical—ideal for beginners to follow and repeat.
Essential Car Rental Vocabulary
Learn these key terms to understand your contract:
- Collision Damage Waiver (CDW) – optional insurance that covers accident damage
- Unlimited mileage – drive as much as you want—no extra fee
- Fuel policy – rules about returning the car with gas
- Return it full – bring the car back with a full tank
- Rental agreement – the official contract you sign
- Highly recommended – not required, but strongly advised
- Parking lot B – where your rental car is located
Other Useful Phrases
- “Is insurance included?”
- “What’s the late return fee?”
- “Can I add an additional driver?”
- “Are there any hidden charges?”
Practice Tip
Practice saying “What does ‘collision damage waiver’ mean?” and “Is unlimited mileage included?”—these are the two most important questions when reviewing a US car rental contract!
Why This Matters
Whether you’re:
• Traveling across the US by car
• Picking up a rental at the airport
• Renting for business or vacation
…understanding the contract helps you avoid unexpected fees and drive with peace of mind.
Now you’re ready to rent a car in English—knowing exactly what you’re signing! Bookmark this guide, or try our interactive quiz to test your travel vocabulary.
Drive safely and happy learning! 🚗
