CDW Insurance

CDW/Zero Deductible Insurance in US

When you rent a car in the US and Canada you are usually responsible for the entire value of your rental car should any damage or loss occur while you are renting a vehicle. Some states in the US and Canada do not require that the vehicle owner have mandatory third party liability, meaning the driver of the car is potentially liable for injuries to other people and their property.

The following explanation seeks to answer the question frequently raised when hiring a vehicle: How can a renter decrease their potential out of pocket costs related to damage​ for the car they have rented?

These are the main options:

  1. Purchase "Supplementary Liability Insurance (SLI)" from the rental company. This will be offered generally in states where third party liability is not required to be held by the vehicle owner. The SLI cover is usually between $1,000,000 and $2,000,000. However, we always recommend that you ask the rental company as there are differences from state to state.
  2. Purchase "Collision Damage Waiver (CDW)" or "Loss Damage Waiver (LDW)" from the rental company. Most car rentals in North America have this option included by default. This waives most of your responsibility related to damage of the car. While CDW/LDW (it also has many other names which all serve the same purpose) decreases your responsibility from the full value of the car towards $0, there is often $500-$2,000 deductible remaining. As always, discuss with your rental company.
  3. Take out "Rental Car Damage Coverage" from RentalCover.com as an alternative to the rental companies' CDW/LDW. This reduces your responsibility to $0 for policies sold on RentalCover.com (unless otherwise stated in your quote). RentalCover.com policies also include cover for all types of damage resulting from an accident such as windscreen, tire, headlight, underbody and roof damage.