Loss Damage Waiver (LDW) Explained

What is Loss Damage Waiver (LDW)?

Loss Damage Waiver (LDW) provides cover if there is loss or theft of a rented vehicle.

How does Loss Damage Waiver (LDW) differ from Collision Damage Waiver (CDW)?

Collision Damage Waiver (CDW) provides cover if there is damage to a rental car through an accident.  LDW on the other hand, is a combination of CDW and Theft Protection, which means that you will be covered for car replacement if your rental car is stolen during the period of your rental.  

You should note:
  • In most countries, LDW and CDW come packaged together.  However, in the USA and Canada, these are often purchased separately.
  • CDW policies typically exclude windscreen and tyre repairs, as well as undercarriage, roof, interior, window and side mirror damage. The renter will be liable for the full cost of those repairs.

What does LDW not cover?

LDW or CDW does NOT cover you for damage to another vehicle or if the accident results in injuries.

How long is Loss Damage Waiver coverage good for?

The length of the Rental Car Period.  Check with your local provider.

Collision Damage Waiver (CDW) and Loss Damage Waiver (LDW) 

CDW and LDW is usually included in the rate that you see on a website. Note that these “waivers” just reduce your excess from a high amount (similar to the full value of the car) to somewhere between €/$/£1500 and €/$/£3000 depending on the car and the rental company. The reduced excess may still exceed €/$/£10,000 for some high-end sports car rentals, mainly in France.
 
CDW policies typically exclude windscreen and tyre repairs, as well as undercarriage, roof, interior, window and side mirror damage. The renter will be liable for the full cost of those repairs. Many companies also exclude theft as they sell separate theft coverages. As mentioned it is usually included in the rental price, but where sold separately CDW costs €/$/£10 to €/$/£30 per day. LDW (which is CDW with Theft Protection) is in the same price range.
 
If it is not already included, we recommend to all customers that they take out a basic CDW (or LDW to include Theft Protection) for European rental vehicles. Our Insurance Policies and warranty protection policies for Rental Cars cover you for all the items these policies don't protect you for.

Super Collision Damage Waiver (SCDW) and Super Loss Damage Waiver (SLDW)

Think of SCDW as a premium version of CDW. It covers you for most of the exclusions present in the CDW option offered by the car rental company. It also reduces your excess down, in most cases, down to zero. Please keep in mind that SCDW, or CDW and LDW for that matter, are all optional protection services and it is not mandatory for you to purchase them.

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