A loss damage waiver (LDW) is a contractual agreement between a renter and a merchant for the rental of a car or heavy equipment. The merchant agrees to release the renter from any liability for damage or loss that may happen to the rented item. However, it is important to note that the waiver may not provide coverage for intentional damage or damage caused by the renter’s misconduct. It should be noted that LDW is not considered insurance.
A Loss Damage Waiver (LDW) is a contractual agreement between a consumer and a merchant for the rental of a car or heavy equipment. Under this agreement, the merchant agrees not to hold the consumer responsible for any loss incurred due to damage to the rented item. LDW is also referred to as Collision Damage Waiver (CDW) or Physical Damage Waiver (PDW). For instance, when renting a car, the consumer can enter into an LDW contract with the rental company. If the car sustains damage during the rental period, the rental company will not hold the consumer accountable for repair costs, provided the damage is covered by the LDW. However, intentional damage caused by the consumer or damage resulting from the consumer’s deliberate or reckless behaviour may not be covered by the LDW. Similarly, when renting heavy equipment, the customer can enter into a Heavy Equipment Loss Damage Waiver contract with the merchant. This waiver is not insurance, but it shields the customer from liability for any loss arising from damage to the rented equipment.
A Loss Damage Waiver (LDW) is a type of insurance coverage offered by rental car companies that protects the renter from financial responsibility in case of damage or theft of the rental vehicle.
No, LDW is not mandatory. It is an optional coverage that you can choose to purchase or decline when renting a car.
LDW typically covers the cost of repairs or replacement of the rental vehicle in case of damage or theft. It may also cover related expenses such as towing and administrative fees.
Yes, LDW coverage may have certain exclusions, such as damage caused by driving under the influence of alcohol or drugs, off-road driving, or reckless driving. It is important to carefully review the terms and conditions of the LDW policy to understand the specific exclusions.
In some cases, your personal auto insurance policy may provide coverage for rental cars. However, it is important to check with your insurance provider to understand the extent of coverage and any limitations or deductibles that may apply.
The cost of LDW varies depending on the rental car company and the type of vehicle being rented. It is typically charged as a daily fee, and the cost can range from a few dollars to over $20 per day.
Some credit cards offer rental car insurance coverage as a benefit. If your credit card provides this coverage, you may be able to decline LDW. However, it is important to check the specific terms and conditions of your credit card’s rental car insurance coverage to ensure it meets your needs.
If the rental car is damaged, you should immediately report the incident to the rental car company. They will provide instructions on how to proceed, which may include filing an accident report and arranging for repairs.
LDW typically only covers damage to the rental vehicle itself. It does not usually provide coverage for damage to other vehicles or property. Liability insurance, which is separate from LDW, may cover such damages.
LDW is usually offered at the time of rental and cannot be purchased after the rental period has started. It is important to make a decision about LDW coverage before signing the rental agreement.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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