Loss Damage Waiver (LDW) in car rental

Loss Damage Waiver (LDW) is optional insurance coverage that car rental companies usually offer to their customers to cover the costs of damage to and loss of the rental car. Car rental companies can offer this coverage multiple times during the rental process. First, while the customer makes a booking and also at the rental desk during the rental car pick-up. The cost of LDW is calculated based on the rental period. A fixed amount of money per day is added to the total rental cost. This means that the total cost of LDW depends on the duration of the rental period. However, car rental companies can also include LDW already in the rental offer.

LDW covers damage to the rental vehicle as well as the expenses that occur when the rental vehicle is stolen. LDW does not cover expenses that are related to third-party liability or injury that can occur during traffic collisions. The expenses will also not be covered if the car rental company’s terms and conditions have been violated.

While having purchased LDW, there is still a certain amount of money that the customer has to pay when loss or damage occurs. This sum is called excess (or deductible in the US) and varies between car rental companies as well as car rental offers.