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How does rental excess & CDW work in Canada? What are my options?

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

In Canada most rental companies will offer Collision Damage Waiver (CDW) (also called LDW/Loss Damage Waiver if it includes theft) to reduce the deductible "excess" you must pay in the event of an accident. Many rental companies exclude certain types of damage such as windscreens and tyres, while the CDW/LDW sometimes reduce your deductible to between CAD$500 & $2000. CDW and LDW reduce the deductible to CAD$0 for a handful of rental companies. Use the above comparison tool to see who does what.

As always, check your booking confirmation and discuss with your rental company if you are unsure how much you are insured for, or ask us to help you out as we are happy to help. You may also want to read our FAQ about renting in the USA as there are some differences, mainly because US rental companies always remove the "deductible" so there's nothing to pay in the event of a collision, except some "out of pocket" costs. Those incidental/"out of pocket" costs are instead insured by our "Extra Cover" policies for USA and Canada

Supplementary Liability Insurance (SLI) - Third Party

Each Canadian province has different rules regarding whether or not third party liability (usually called "Supplementary Liability Insurance (SLI)" by car rental companies) must be provided, and often the minimum level of coverage required by law is quite low. This means the driver of the car is potentially responsible for injuries to third parties (i.e. other drivers, their passengers, the other driver's car).

Minimum Liability Limits
Minimum liability limits per province are below alongside the supplementary amounts sold by the rental companies.
Province Min. third party liability required Supplier's Supplementary Liability Insurance
Alberta CA$200,000 CA$1-2 million
British Columbia CA$200,000 CA$1-2 million
Manitoba CA$200,000 CA$1-2 million
New Brunswick CA$200,000 CA$1-2 million
Newfoundland CA$200,000 CA$1-2 million
Nova Scotia CA$500,000 CA$1-2 million
Ontario CA$200,000 CA$1-2 million
Prince Edward Island CA$200,000 CA$1-2 million
Quebec CA$50,000 CA$1-2 million
Saskatchewan CA$200,000 CA$1-2 million

If it is not already included in your car booking, you will be offered SLI at the rental desk, also called Accident Liability Insurance (ALI) or Liability Insurance Supplement (LIS) by your rental company. The SLI sold by rental companies is usually between CAD$1,000,000 and $2,000,000. As a general rule, we advise you to take the SLI if it is offered. 

Personal Accident Insurance (Personal Injuries)

Personal Accident Insurance (PAI) insures you and your passengers for accidental medical costs, emergency care and accidental death during your rental trip. In Canada, drivers in all provinces, except Newfoundland and Labrador, are legally required to have PAI, however the limits are very small (i.e. a few thousand dollars). "Extra PAI" coverage is consequently sold by rental companies, providing up to CAD$1 million. This should be adequate coverage if you or a passenger are injured.

Super CDW / Super LDW

Most rental companies offer a waiver that is variously titled Super CDW, Excess Waiver, Damage Liability Waiver, or something similar.'s "Zero Excess Rental Cover" is a cheap alternative to this waiver and covers all types of accidents and damages.

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Please check if these questions are relevant or scroll down to contact us:

About Our Price Guarantees

How are coverage days calculated?
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What are the benefits?
Who is & Who provides the coverage?
What is the Rating of Our Underwriters?

Alternatives to

How to make an informed choice when you get to the rental desk - your insurance options explained.
Can I rely on Travel Insurance?
Should I just risk it and not get insurance?

Annual Plans

How Do I "Log" Rentals For My Annual Plan?


How do claims work for "Extra Cover" (for USA & Canada)?
How do claims work for "Zero Excess Rental Cover", "No Excess Rental Cover" & "Rental Vehicle Cover"?
When can I expect claims to be settled?
How do I make a claim?
Am I insured if I have more than one accident?
How do I report a claim for "Collision Damage Coverage" (for US Residents)?

Country: Asian Countries

What should I do at the rental desk in Asian Countries

Country: Australia/NZ

How does Excess Reduction & Third Party Insurance work in Australia and New Zealand
What should I do at the rental desk in Australia/NZ?

Country: Canada

How does rental excess & CDW work in Canada? What are my options?
What should I do at the rental desk in Canada?

Country: EU/UK

How does rental excess/CDW work in Europe? What are my waiver options?
What should I do at the rental desk in EU/UK?

Country: Latin American Countries

What should I do at the rental desk in Latin American Countries

Country: Namibia/Africa

How does rental excess & CDW work in Africa? What are my options?

Country: United States

What are the insurance options in the USA? How does the US differ from most other countries?
How Does The Free Roadside Assistance Work for USA Policies?
What is Extra Cover for the USA? What do I say at the rental desk?
What should I do at the rental desk in the US?
What should I do at the rental desk if I am traveling abroad with Collision Damage Coverage (for US Residents)?

Country: Worldwide

What should I do at the rental desk: Introduction

Damage Waivers (CDW, LDW, Super CDW, Super LDW)

What is "excess", "CDW", "LDW", "excess reduction", etc? And what is
How much do I pay if there's an accident?
How do "LDW" and "Super CDW" and "Super LDW" differ from simple "CDW"?

Managing/Cancelling/Modifying Policies

How do I cancel a policy, change dates or add coverage? What if I changed my rental vehicle?
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When are the policies issued?
How do I submit my airline rewards program number?
How much coverage do I need?
Are there age or residency restrictions?
Are additional drivers insured?
How do I change the name of the policy holder?
Who is insured? What is insured?
I bought a policy but changed my car. Do I need a new policy?
How do cancellations and refunds work?
What is a refundable deposit/bond? When does it get refunded?
How do I add coverage to my policy?
I have several rentals over a period of time. Do I need a policy for each rental? What if I have several countries to visit?
What are my policy's inclusions?

Personal Accident Insurance

What is PAI (Personal Accident Insurance)?

Supplemental Liability Insurance

What is SLI (Supplementary Liability Insurance)?

Theft Protection

What is Theft Protection?

Third Party Cover

Is "Third Party" included?
Why do rental companies charge a large excess when the repair cost is small? What happens if I'm "not at fault"? Will I get my money back? When?

Types of Vehicles & Types of Rental (Peer To Peer etc)

Are 4x4s Insured? What about unsealed roads?
What types of "rentals" are insured? Car shares? Loan cars from mechanics?

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