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

We get it; you want to hit the road without any fuss. Whether you’re traveling for business or heading out on a family getaway, you’ve got other things on your mind. To make your trip as worry-free as possible, ensuring your rental car will be protected is a great place to start. That’s where a loss damage waiver (LDW) comes in. Think of it as extra peace of mind when faced with the unexpected. If you’ve ever considered adding LDW to your reservation but aren’t exactly sure how it works, here are our answers to some of the most frequently asked questions.

What is a loss damage waiver (LDW)?

A loss damage waiver, also known as LDW, is an optional product that waives your financial responsibility for any loss or damage incurred to your Hertz car rental, provided you haven’t violated the rental agreement’s terms and conditions. A loss damage waiver can be a wise option for renters.

Is a loss damage waiver worth it?

Yes, a loss damage waiver has the potential to save you both time and money if an accident were to occur during your rental.

Without a loss damage waiver, in most states, the renter will be responsible for any loss or damage to the car, even if the damage is not your fault. If the unexpected happens, the full value of the car, towing, storage, impound expenses, loss of use and other charges may leave you out of pocket if you are not protected with a LDW.

Another reason to consider adding a LDW to your rental is if you do not currently have car insurance, or your provider does not cover rental cars. Even with your own car insurance in place, filing a claim could potentially raise our overall rates, leaving a long-term impact on how much you’ll pay for your car insurance in the future. With a 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.

What does a loss damage waiver cover on a rental car?

When you sign a rental agreement with Hertz, you are agreeing to comply with its terms and conditions. However, we know that some things can’t be prevented, such as theft, vandalism, collision, fire, and acts of nature. All of these can directly impact your rental vehicle but may be covered under a LDW. So, if your rental car is parked and locked outside overnight, but in the morning, it’s nowhere to be found, don’t panic. Your loss damage waiver can relieve you of any financial responsibility.

What does a LDW not cover?

A loss damage waiver does not cover loss or damage when there’s been a violation of the rental agreement’s terms and conditions. Loss or damage to the rental car due to an agreement forfeits any coverage that the loss damage waiver may provide. Third-party damages or injuries are also not covered under a loss damage waiver.

How much does a loss damage waiver cost?

Pricing of LDWs varies depending on the type of vehicle you choose to rent. When you make a reservation request, a LDW fee will be populated. This will typically be listed as a daily fee alongside your standard rental charges.

Who qualifies for a LDW?

Anyone renting a car can opt-in for the coverage provided by a loss damage waiver.

How long is loss damage waiver coverage good for?

An LDW covers you throughout your rental period. This means you’ll have 24/7 coverage, even when you aren’t in the vehicle, and you won’t have to stress about things like parking in crowded parking garages where side-door collisions are common.

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.