A man checks out his silver rental car while a rental car agent notes any damages prior to check out

Loss Damage Waiver: What It Is, Is It Worth It, and Other FAQs

A man checks out his silver rental car while a rental car agent notes any damages prior to check out

Loss Damage Waiver: What It Is, Is It Worth It, and Other FAQs

The next time you rent a car, give yourself some extra peace of mind. Find out why a Loss Damage Waiver is so important and what it covers with this guide.

We get it. You want to hit the road without any fuss. Whether it’s for business or a family getaway, you’ve got other things on your mind – getting to where you want to go. But to make your trip as worry-free as possible, ensuring your rental car is protected is a great place to start. That’s where Loss Damage Waiver (LDW) comes in. Think of it as peace of mind for those unplanned events. If you’ve ever considered adding LDW to your reservation, but weren’t exactly sure what it was, here are some of the top questions answered.

What is loss damage waiver (LDW)?

Loss Damage Waiver, also known as LDW, is an optional product that waives your financial responsibility for any loss or damage incurred to the rental vehicle, provided you have not violated the Rental Agreement’s Terms and Conditions. Loss Damage Waiver can be a wise option for renters.

Is loss damage waiver worth it?

Yes. Loss Damage Waiver has the potential to save you both time and money if an accident was to occur during your rental.
Without Loss Damage Waiver, in most states the renter is responsible for any loss or damage to the car, even if the damage is not the fault of the renter. If the unexpected occurs, the full value of the car, towing, storage, impound expense, loss of use, and other charges may cost you out-of-pocket as a result of not protecting yourself.

An additional reason to consider adding LDW to your rental is if you do not currently have individual car insurance, or your provider does not cover rental cars. Even with car insurance, filing a claim with your insurance company could potentially raise your overall rates, making a long-term impact on what you pay for individual car insurance. With Loss Damage Waiver, you won’t have to worry about filing a claim, or paying out-of-pocket expenses after loss or damage to the vehicle.

A family drives safely in their rental car on a beautiful day.
Source: Shutterstock

What does loss damage waiver cover on a rental car?

When you sign the Rental Agreement with the rental car company, you are agreeing to comply with the Rental Agreement’s Terms and Conditions. However, we know that some things are not always preventable. Things like theft, vandalism, collision, fire, and acts of nature that directly impact your rental vehicle are all examples of what is covered under LDW. So, if your rental car is parked and locked outside overnight, and in the morning, it’s nowhere to be found, don’t panic. Your Loss Damage Waiver will relieve you of financial responsibility for the rental vehicle.

A man at a car rental counter discussing the rental agreement with a rental employee
Source: Shutterstock

What does LDW not cover?

Loss Damage Waiver does not cover loss or damage where the Rental Agreement Terms and Conditions have been violated. Loss or damage to the rental car where the Terms and Conditions of the Rental Agreement are violated will forfeit any coverage that the Loss Damage Waiver provides. Third-party damages or injury are also not covered under Loss Damage Waiver.

How much does loss damage waiver cost?

Pricing of LDW varies depending on the type of vehicle you choose to rent. Upon your reservation request, an LDW fee will populate as a daily fee charged in addition to your rental charges.

Who qualifies for LDW?

Anyone renting a car can opt in for coverage provided by the Loss Damage Waiver.

How long is Loss Damage Waiver coverage good for?

LDW covers you for the entirety of your rental period. This means 24/7 coverage, even when you aren’t in the vehicle. For example, you won’t have to stress about things like parking in crowded parking garages where side-door dings are common.

A man at a car rental counter discussing the rental agreement with a rental employee
Source: Shutterstock

Are you planning on renting a car for your next trip? To learn more about keeping yourself protected, visit our Loss Damage Waiver page and check out our LDW Basics Guide below.