Cancellation Policy
The cancellation policy spells out what happens if you call off a booking before you pick the car up. It is the single clause that decides whether a change of plans is painless or expensive.
Policies sit on a spectrum. Fully flexible rates let you cancel free up to shortly before pickup; semi-flexible ones refund you if you cancel beyond a set deadline; strict prepaid rates may refund little or nothing once booked. The cheaper the headline price, the stricter the policy tends to be.
The deadline is the detail that matters most. "Free cancellation up to 48 hours before pickup" is generous; "non-refundable" means the discount you enjoyed is the price of locking yourself in.
Match the policy to how sure you are. If your dates are firm, a strict rate can save money; if there is any chance of change, paying a little more for free cancellation is cheap insurance against losing the lot.
Related terms
No-Show
Failing to collect a booked car without cancelling — usually forfeiting all or most of what you paid.
Early Return
Bringing the car back before the agreed end date — which often does not earn you a refund for the unused days.
Rental Agreement
The contract you sign at pickup setting out the car, dates, price, insurance and the rules you agree to.