LDW Meaning: What Is a Loss Damage Waiver in Car Rentals?

When you're driving a hired vehicle, it's crucial you have proper rental car coverage and understand how far your policies extend. If you're puzzled about Loss Damage Waivers (LDW) and what they mean for you, you're in the right place.

In this guide, we'll explain what Loss Damage Waiver cover is and the role it plays in being protected when things go wrong with your rental vehicle. Find out how you can avoid facing a major financial burden if a hired car is damaged or stolen while you’re using it.

What is a Loss Damage Waiver?

A Loss Damage Waiver is a document that reduces the liability of customers driving rental vehicles. It combines a Collision Damage Waiver (CDW) with theft protection, which CDW policies often lack. In some cases, these terms can also be used interchangeably.

An LDW is not technically an insurance policy. Instead, it transfers the liability for damage to or theft of your vehicle to the rental company. This means that in the event of an incident that's covered by your policy, you're only liable for your excess amount.

LDWs can include cover for:

• Single vehicle accidents.

• Damage to the main body of a vehicle.

• Some cover for fire and vandalism.

• Theft.

• Optional extras like towing, windscreens, headlights and key cover.

If you're renting a vehicle outside of Canada or the United States, it's likely that a LDW is included in the price of your rental vehicle. These policies usually offer a good level of protection against damage to and theft.

However, they can still contain gaps. For example, underbody damage or lockouts may not be covered under your policy, meaning you have no protection for these events.

With a RentalCover policy, you receive more comprehensive coverage, while paying 50% less than what the rental companies offer^†. Plus, your final excess in the event of a claim is $0.

How much does a Loss Damage Waiver cost?

Outside of the United States and Canada, the price of an LDW is usually included within the basic price of your rental vehicle. The value of the LDW is influenced mostly by the vehicle you choose to rent. Naturally, the length of your rental period also affects how much you end up paying for your LDW.

Who qualifies for an LDW?

LDWs are generally automatically included in the price of your rental vehicle, meaning the primary renter "qualifies" for an LDW. Check your policy statement or rental agreement to determine if any additional drivers are covered under your LDW.

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

The primary difference between an LDW and a CDW relates to theft protection. A "Collision Damage Waiver" usually only covers damage to a vehicle. For example, if your vehicle is involved in a multi-vehicle car accident, you can be covered under a CDW.

A "Loss Damage Waiver" typically includes all the protection of a CDW, plus theft protection. However, depending on the car rental company you are using, these terms may be used interchangeably.

What does a Loss Damage Waiver not cover?

LDWs don't cover damage to another vehicle, or if an accident results in injuries. These incidents sit outside of the scope of an LDW.

LDWs commonly also exclude things like:

• Damage to a vehicle's undercarriage, roof, interior, windows and side mirrors.

• Towing, lockouts, keys, windscreens and headlights available as optional extras rather than automatic inclusions.

• Multi-vehicle accidents.

• Tyres and underbody damage.

With a policy from RentalCover, you can be covered for a greater range of incidents than LDWs from car rental companies. Better yet, our cover is 50% cheaper than what car rental companies offer^†.

Is a Loss Damage Waiver worth it?

Unless you're in the US or Canada, the cost of an LDW is usually automatically included in the price of your car rental. These policies provide a solid level of cover.

However, they can exclude things like damage to windscreens and the underbody of your rental vehicle. They also often come with high excess when you make a claim.

To make sure you can travel with complete peace of mind, consider a more robust policy from RentalCover. This will fill the gaps in your rental company's LDW, while reducing the excess you pay in the event of an incident to $0.

How long is Loss Damage Waiver coverage good for?

Your LDW should extend for as long as you rent your vehicle for. Make sure to confirm this with your car rental provider.

What are Super Collision Damage Waivers (SCDW) and Super Loss Damage Waiver (SLDW)?

Super Collision Damage Waivers (SCDW) and Super Loss Damage Waivers (SLDW) are essentially premium versions of CDWs and LDWs. As with the non-premium versions of these policies, an SLDW can be distinct from an SCDW because it includes theft protection.

These waivers come with a higher price tag compared to their non-premium counterparts. As a result, they generally cover most of the exclusions of a basic CDW or LDW.

They also generally reduce excess amounts to $0. However, some fees like towing costs can still apply.

While these policies can offer more peace of mind, their higher cost means they might not offer the right value for you. RentalCover offers a more affordable approach to comprehensive protection, with $0 to pay in the event of a claim.

Cover your rental vehicle with RentalCover

The standard LDW included in your rental policy can offer solid coverage, but for true peace of mind, you need a more comprehensive policy. RentalCover fills the gap in your rental company's LDW at a more affordable rate.

In the event of an incident, you have $0 to pay in excess. Get your instant quote today and make sure you can breathe easy on your next journey.

Hear from our rental car insurance expert

"While an LDW will usually be automatically included in the price of your rental vehicle, it might not offer the comprehensive cover you need for a truly secure journey. You can get additional cover from providers like RentalCover, filling in gaps in your cover when it comes to headlights, underbody damage and more.

You're also covered for the excess your rental company charges you when things go wrong. Consider a RentalCover policy for true financial protection on your hire car."