Loss damage waiver (LDW)

A loss damage waiver (LDW) is optional insurance coverage that can be purchased when renting a car. It protects renters against financial liability in the event of theft or loss of the vehicle.

When renting a vehicle, customers are presented with an option to purchase an LDW as part of the rental agreement. The cost of an LDW is typically added to the daily rental rate and varies based on the rental company, vehicle type, and rental duration.

While an LDW reduces the renter’s financial liability, it may not eliminate it entirely, depending on the provider’s conditions.

An LDW is similar to a collision damage waiver (CDW), which covers damage to the rental vehicle caused by collisions, accidents, vandalism, natural disasters, etc.