Is Collision Damage Waiver (CDW) the same as Loss Damage Waiver (LDW)?

We explain the ins and outs of CDWs (Collision Damage Waivers) and LDWs (Loss Damage Waivers)

Collision Damage Waiver (CDW) and Loss Damage Waiver (LDW) are not the same, but CDW is included within LDW policies as well as Theft Protection (TP).

Below are the definitions of both CDW and LDW.

Collision Damage Waiver (CDW) - is not insurance, but an agreement to waive the costs of damage to your rental vehicle if it is involved in a collision. Frequently CDW has an 'excess' which is the first part of any claim which the renter will remain liable for. Also there are a number of parts of the car which are commonly not covered by CDW, such as the tyres, wheels, underbody, roof and windscreen.

Loss Damage Waiver (LDW) is the collective name for CDW and Theft Protection (TP) combined which also covers the costs of replacing the car if it is stolen. Normally the excess on Theft Protection waivers are the same or higher than for CDW.

Excess insurance policies all cover the excess that you might be responsible for under both Collision Damage Waiver and Theft Protection agreements, and most cover all the 'excluded' areas mentioned above.

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This content was last reviewed on 11/10/2023

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