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 deductible 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.

LDWs are usually offered by your rental company when you pick up your vehicle. While these policies can offer some solid protection, coverage can also be filled with gaps. For example, underbody damage or lockouts may not be covered under your policy, meaning you have no protection for these events.

In addition, LDWs purchased from car rental companies often come with large deductibles you need to pay in the event of a claim. You can also be on the hook for other fees like towing or loss of use.

Doesn't sound like the cover you want? If you purchase a RentalCover policy before picking up your vehicle, you can say "no" to LDWs at the rental counter. Our cover is 50% cheaper than the rental companies^†.

Plus, you have no deductible to pay in the event of an incident, and get additional coverage many rental companies don't offer. This includes damage to tires, underbody, headlights and more.

How much does a Loss Damage Waiver cost?

The price of an LDW is mostly influenced by the vehicle you rent. The length of your rental period will also have a significant effect on the final amount you pay for your LDW.

Who qualifies for an LDW?

LDWs are offered by virtually all car rental companies. To purchase an LDW, you generally need to be the primary renter of the vehicle on the renter agreement. They usually only cover authorised drivers of the rental vehicle.

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?

For many customers, buying the Loss Damage Waiver offered when you pick up your car may not be the best-value option. These policies can have significant gaps in protection, and you can be left paying a big deductible in the event of a claim.

What if you could get cheaper cover that's also more comprehensive? That's exactly what RentalCover offers. Our policy is 50% cheaper than what's offered by the rental companies^†, with gaps filled when it comes to multi-vehicle accidents, underbody damage and much more.

When you make a claim, your deductible is $0. Get an instant quote today so you can say "no" to LDWs at the rental desk, and say "yes" to RentalCover.

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 a 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 deductible 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

RentalCover offers more comprehensive protection than hire car companies. Our policies are 50% cheaper^†, and you'll have no deductible to pay in the event of an incident.

Get your instant quote today and travel with more peace of mind on your next journey.

Hear from our rental car insurance expert

"The LDW your rental company offers you might not be the right option for you. With RentalCover, you can get more comprehensive cover at a more affordable price. When an incident occurs, there's nothing for you to pay out-of-pocket.

For a secure journey with true financial protection, RentalCover's policies are well worth consideration."