The difference between a CDW and an LDW is that a collision damage waiver (CDW) only covers you for damage done to a rental car in a crash, while a loss damage waiver (LDW) also provides theft protection in case the car is stolen. Some rental car companies, like Avis, use the terms CDW and LDW interchangeably.
Collision damage waivers and loss damage waivers are optional types of coverage sold by rental car companies and third parties. Drivers can usually buy these waivers at the rental car counter for around $10-$30 per day. However, it’s important to note that collision and loss damage waivers do not provide liability insurance, which pays for damage you cause to others and their property. Instead, rental cars in most states automatically come with liability coverage. Drivers with standard car insurance policies will usually have liability insurance from their personal insurer, too.
To decide if you should purchase a CDW or LDW, check out WalletHub’s complete guides to collision damage waivers and rental car insurance.
This answer was last updated on 07/26/24 and it was first published on 05/26/21. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
