Coverage & liability · Travelers + trade
Loss Damage Waiver (LDW)
Also called LDW
What it means
A Loss Damage Waiver is a waiver that covers both damage to the rental car and its loss through theft. If you buy it, the rental company agrees not to charge you for covered damage or theft, either in full or above a stated amount. Exclusions still apply, typically for prohibited use, unauthorized drivers or breaking the rental agreement. Some US states, such as New York and California, set rules on how these waivers are priced and described, so the offer can differ by state.
Why it matters
At a US counter, LDW is usually the biggest optional charge offered. Whether you need it depends on what your own auto insurance or credit card already covers, which is worth checking before you travel.
Wording by region
Outside the US and Canada the same protection is usually split into CDW (damage) and TP (theft), often already included with an excess.
Related terms
- Collision Damage Waiver (CDW)An agreement where the rental company waives some or all of its right to charge you for damage to the car, usually above an excess. It's not insurance.
- Theft Protection (TP)Limits what you pay if the rental car is stolen, usually down to a theft excess.
- Credit card rental coverageRental car damage cover that some credit cards provide when you pay for the rental with that card.
Also related Personal auto policy coverage (US), Partial Loss Damage Waiver (PLDW), Waiver