What is Loss Damage Waiver Insurance? | Budget Rent a Car



Collision Damage Waiver (CDW) / Loss Damage Waiver (LDW) Details


What is a Loss Damage Waiver?


A Loss Damage Waiver, or LDW, is the same thing as a CDW; it’s an insurance option car renters can pay for that will waive your financial responsibilities in the event of an accident. For the CDW to remain in effect, you need to abide by the rental agreement’s terms and conditions. 

LDW insurance is a wise option for renters traveling in high-traffic areas known for accidents. It’s also a great choice in general because it protects you if the car is damaged or vandalized, which might happen when you aren’t even in the car.


What are the Benefits of Opting for the Loss Damage Waiver?

An LDW is optional, but it does have some pretty important benefits you should consider before you write it off entirely. Some of those benefits include:

  • Peace of mind: Accidents happen, but with a rental car loss damage waiver, you won’t have to stress about potential accidents because you’ll be covered. 

  • Reduced financial liability: The money you’ll save in the event of an accident will be well worth it.

  • Relatively low cost: Fees for LDWs vary based on car type and location, but they tend to stay relatively low. You can see the price of an LDW at your rental location when you make your online reservation.

  • Protection: Ultimately, this is the reason you want to get a Loss Damage Waiver; it protects you from financial liability if the car gets damaged.


Do I Have Coverage Through My Auto Insurance or My Credit Card?

There are some personal auto insurance and credit card policies that include protections for the rental car or its passengers in the event of an accident. Typically, the credit car policy only applies if you used the car to pay for the rental.

But there are a lot of insurance companies and policies out there, so we recommend you get in touch with your insurance company and find out if you have coverage through your personal auto insurance. The same goes for your credit card company. They will help you figure out if an LDW is right for you. 


How Does LDW Compare to Coverage on Travel Websites?

Many companies that sell travel packages offer insurance protection to cover car rentals. We recommend checking your personal auto insurance to see if it covers rentals. If you have that protection through your insurance or provided by your credit card, additional coverage from the travel site might be redundant. 

That said, even your personal insurance (as well as those travel package offers) might not cover you completely when an accident happens. Our LDW waiver is a great way to get extra coverage. Book your rental directly on Budget.com, and choose your rental car coverage online while you’re at it. 


What are the Rental Car Coverage Options from Budget?

Our rental car protection plans are versatile and optional. Before signing one of our plans, we suggest you talk with your insurance. See if you have any type of coverage when it comes to rentals.

Looking for a simple way to guarantee coverage while renting a car? Take a look at our rental car protection plans before booking an online car rental.

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