Loss Damage Waiver (LDW): Definition
A Loss Damage Waiver (LDW) is a particular type of insurance which is often offered when you are renting a vehicle and it is sold by a rental car company. It is also called a collision damage waiver (CDW), and it typically covers a damage/loss should an accident occur. Usually a car rental company would charge you about $20 per day for this type of protection, but there are several aspects of this insurance that you want to understand:
- What’s covered? Is that only damages to a car, or is 3rd party liability covered as well?
- What are the coverage limits? Often these limits can be insufficient (e.g. minimal limit required by law) whereas accidents with bodily injuries can add up to huge amounts.
- What are the exclusions? For example, some LDWs may not cover you while you are driving on unpaved roads.
Credit Cards and Loss Damage Waiver
Often credit cards a have a feature called “rental car insurance” and it is, in fact, a loss damage waiver for rental vehicles. An important thing to know about it is that it does not cover 3rd party liability and your personal bodily injuries. Also, in order to use it you need to pay for your rental car with this credit card and decline the collision damage waiver (CDW) offered by the car rental company. This protection often has a time limitation (e.g. car rental period should not be longer than 48 consecutive days). If you have a vehicle that would not be considered a usual vehicle, e.g. very expensive rental, cargo vans, pick up cars, etc., it might be not covered. You need to check in advance with your bank to see if your card’s insurance covers it.
Your Auto Insurance and Loss Damage Waiver
If you feel that you need more protection than your credit card offers, or you do not want to spend $15-20 per day for the collision damage waiver (CDW) offered by a car rental company, you should look at your own car insurance. Many providers offer additional pieces of protection (also called riders) which are designed to protect your rental car and may only cost you an additional $30 per year on top of your usual premiums.
- Interested to save on your auto insurance? Get a free quote today
- Discover the lowest auto insurance rate across numerous insurance companies
- Spend 15 min to start saving hundreds of dollars annually
Get a free Auto Insurance quote from 10+ Canadian insurers in Alberta
Our Publications related to Auto Insurance
The arrival of COVID-19 has pushed Canadians, more than ever before, online for finding and applying for insurance and banking products. It is not easy, though, to make the right choice without knowing if a particular insurer will be there when you need them the most. As the largest Canadian review platform with thousands of […]
Here are two summaries of top Alberta Car Insurance stories that were published in March and May 2017 in Canadian media outlets: CBC News Edmonton: Insurance company offers $5,500 for truck appraised at more than $40,000 (click to scroll to the story summary) Simcoe Reformer: Changes to benefit entitlement in 2016 adds to family’s struggle […]
Something that is quite straight forward for Canadians often turns out to be more complicated for those who are new to Canada. Searching for auto insurance and getting a cheap car insurance policy is one such issue, but we are here to help. Here are some questions you need to answer and steps you need […]
Hundreds of websites on the Internet perpetuate insurance myths. In this article, we have summarized all the insurance myths we are aware of and catalogued them by type, starting with home insurance, followed by auto insurance, life Insurance etc. If interested, you can unlock another 20 additional insurance myths at the end of our article. […]
Ontario car insurance rates are still by far the highest across Canada. This publication looks, in detail, at these rates and scrutinizes the recent approval of rate changes by the Financial Services Commission of Ontario (FSCO) to understand what consumers can expect in future. We also look at several possible scenarios how car insurance rates […]