John Cletheroe's
USA and Canada Holiday Hints


Car Rental in the USA and Canada - CDW (Collision Damage Waiver) and LDW (Loss Damage Waiver)

CDW (Collision Damage Waiver), sometimes called LDW (Loss Damage Waiver), is optional but extremely highly recommended since it protects you from being potentially liable to the car rental company for anything up to the full value of the car, even if something happens to it which is not your fault.

The cost of CDW/LDW varies from state to state, but is typically $9-$18 per day for normal cars (as at Dec-98), with the least expensive CDW/LDW rate applying in California where it is limited by law to $9 per day (as at Dec-98). Higher rates may apply with special vehicles. Much higher CDW/LDW rates apply for RV's (recreational vehicles, i.e. motorhomes).

In the summer of 1999 we paid a CDW charge of $9 per day with Alamo for a rental in California.

It is possible to purchase vouchers in the UK for car rental in the USA or Canada that include CDW/LDW, but check whether this is your least expensive option - sometimes it is, sometimes not. Because of the much lower cost of CDW/LDW in California, if you are renting a car in that state then be especially careful to check whether a car rental package which includes the cost of CDW/LDW is a less expensive option than paying the CDW/LDW charge locally. If you do purchase a car rental voucher which includes CDW/LDW or any other cost elements then make certain that both the voucher and the rental agreement state this clearly since a very considerable sum of money is involved.

Some Gold Cards issued in the USA and Canada cover the cost of CDW/LDW when used to purchase car rental in the USA and Canada. Gold Cards issued in the UK do not have this feature, unfortunately.

Any car insurance held in Britain does not apply for driving in the USA or Canada. In any case, CDW/LDW is not an insurance policy but a waiver of your liability for damage to the car to the car rental company.

Some years ago CDW/LDW was made illegal in a few American states, so the car rental companies included it in the basic rental cost in those states, effectively making it mandatory. This may no longer be the case and only ever applied a very small number of states (New York State being one, I seem to recollect).

Most car rental companies insist that if you take out CDW/LDW then it must be with them and CDW/LDW purchased from any other source is not valid. I believe that some companies such as American Express offer a combined holiday insurance, top-up insurance and CDW package; before purchasing such a product you need to ensure that the CDW element will be accepted by your car rental company.

Driving a rented car on an unpaved road or into Mexico or any other non-permitted area will void the CDW/LDW and any insurance.


American English To British English Dictionary - Driving

Car Rental

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As with all the other pages on this personal web site, all the information on this page is solely the opinion of the author, who has no connection whatsoever with any of the companies and organisations mentioned other than as an actual or potential customer.
About this personal web site JohnCletheroe

EMail me Please note that I am not in the car rental business or the travel trade and I cannot provide any more information on car rental other than that presented here. Nor can I process any requests for quotations or reservations for car rental - these should be directed to car rental companies or travel agents.

Most recently modified 21-Jul-02