Q: What is it?
A: The optional Loss Damage Waiver (LDW) offered by car rental companies is not insurance. It's an option that relieves renters of financial responsibility if the car is damaged or stolen while under rental contract. Using the vehicle in violation of any of the use restrictions listed on the rental agreement could void LDW and leave the renter fully responsible for any damage to the vehicle.
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Q: What if I decline LDW?
A: If you decline LDW you may be responsible for up to the full fair market value of the car if it is damaged, vandalized or stolen during the rental. You may also be responsible for reimbursing the car rental company for the revenue lost by not being able to use the car while it is being repaired or not recovered due to theft (loss of use).
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Q: Who needs it?
A: When renting for business, check with your corporate travel manager to see if the company provides coverage in the event of loss.

If you're renting for personal reasons, check your own automobile insurance policy before you pick up your rental car. Many policies do cover rental cars, but even if a renter has personal automobile insurance, he or she may not be totally protected.

For example, if you decline LDW and rely on your own insurance, you probably would be responsible for paying your usual deductible. Also, loss of use fees are not normally covered by personal auto insurance policies. And, personal auto policies that extend collision coverage to a rental car may only provide a coverage limit equal to the value of the vehicle scheduled on the policy.

If the value of the renter's personal auto is less than that of the rental vehicle, the renter could still have some damage responsibility. Finally, if you don't own a car and don't have automobile insurance, you should consider accepting Loss Damage Waiver.
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Q: Won't my credit card cover it?
A: Some credit card companies offer protection if you present their card at the time of rental and use the same card to pay for your rental at the time of return. Renters should examine closely the terms of this coverage as the protection is often supplemental and certain limitations or restrictions may apply.
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Q: Is LDW always the same?
A: LDW is not available in all states, and certain restrictions may apply in some states. Specific information on availability of optional LDW and the cost can be obtained when making a reservation. We recommends that you decide whether or not you need LDW before you pick up your car, and if you don't need it, don't buy it.
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