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Collision Damage Waiver (CDW) & Loss Damage Waiver (LDW)

Collision Damage Waiver (CDW) and Loss Damage Waiver (LDW) are types of car hire insurance. As the names suggest they cover you in the event of collisions, damage, loss or theft of your hire car.

Usually they are is included in all hire car agreements in the UK, Europe and Australasia, but often not when hiring a car in the USA and Canada.

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What is CDW & LDW Car Hire Insurance?

Collision Damage Waiver (CDW) and Loss Damage Waiver (LDW) are types of car hire insurance that cover you against damages & theft to your hired vehicle. It is common practice for vehicle hire companies operating inside Europe, Africa and Australasia to include this cover as part of the rental agreement, however, outside these continents, it is not as common and should be bought separately from third parties or by the hire company as an add-on. Such countries include USA and Canada.

There are three important things to remember about collision damage waivers.

  1. This policy covers damages to the vehicle, not physical injury and thus medical cover is not included in the policy.
  2. More often than not easily damaged car parts are not included in this policy. Such parts include wing mirrors, tires, wheels, roof, windscreen wipers and undercarriage.
  3. This policy almost always comes with an excess fee which must be paid before any claims for damages are settled. These excess fees usually range from £500-£2000 pounds depending on many factors including the company providing the policy and type of vehicle.

Our USA and Canada policies cover you for excess charges arising from a claim on a CDW/LDW policy and, if you take our Worldwide Insurance (including USA & Canada), then you are covered for up to £100,000 for damage, loss or theft.

What are the benefits of being covered by collision damage waiver?

Our CDW and LDW policy for the USA and Canada protect you against costs of up to £100,000 resulting damages or theft to your vehicle, for which you would be otherwise liable to pay directly. This means that although you will have to pay an excess, you are not liable to pay the full cost of these damages or theft. Thus if you are not covered by a collision damage waiver or loss damage waiver and you have an accident and damage your car or your vehicle is stolen, you will be liable to pay the full cost of damages.


As mentioned, CDW and LDW is usually covered unless you are travelling to USA or Canada, when it often is not included. Our Worldwide (Including USA & Canada) excess insurance is design specifically for driving a hire car in the USA. So you can relax and enjoy the open road.

What should I look out for when buying a CDW policy?

How does excess insurance function?

CDW Car Hire Excess Insurance Cover (only required for USA & Canada)

The purpose of our car hire excess insurance is to provide you with cover for losses you may be liable to pay when renting a car. This can be both the excess and additional costs over and above the amount you are covered for under the terms of your car rental agreement. Our excess insurance includes:

  • CDW/LDW cover up to £100,000
  • Excess for damage, fire, vandalism and theft up to £6,000 per incident
  • Any damage to windows, undercarriage, roof, tyres
  • Lost, stolen or damaged car rental key cover up to £500 per claim
  • Towing costs from breakdown or accidental damage
  • Misfueling cover
  • Out of standard hours charges due to a delayed flight
  • Annual policies – number of rentals per year of up to 30 days at a time
  • You and anyone named on the car hire rental agreement are covered
  • Available to everyone aged 21-85 with a valid UK driving licence
  • USA & Canada policy covers hiring a car in USA, Canada, Caribbean, South America and Central America

CDW Car Hire Excess Insurance Exclusions

  • This policy gives you cover for an unlimited number of rentals within the period of insurance provided no single car rental agreement lasts longer than 62 days
  • Policyholder and all insured persons must be between 21 and 85 years of age
  • Not available if you have already collected your rental car
  • Policyholder must be lead name on rental agreement
  • Cover only applies to drivers named on the rental agreement
  • Maximum retail value of hire car £60,000
  • Maximum retail age of vehicle 20 years
  • Claims arising from operation of the rental car in violation of the car rental agreement
  • Claims arising from mechanical or electrical breakdown – other than towing costs

Excess Insurance Around the World


Our UK and European insurance policy is perfect for family driving holidays or weekends away in the countryside in a hire car. If you are planning on making multiple trips to Europe this year or are planning a hiring a car for more than 17 days then our annual policy will work out cheaper for you.

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If you are traveling to Australia, South Africa or somewhere else far flung then you’ll need our Worldwide excess insurance policy. If you are planning on hiring a car for three weeks or more then you should get our annual policy as it will work our cheaper than our 21 day daily policy.

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Traveling to USA, Canada, Mexico or South America? Car hire insurance is slightly different in these places as it does not include Collision Damage Waiver (CDW) in the policy, commonly included in the UK and Europe. Our policy has you covered with CDW included in our USA & Canada policies.


All Prices Include IPT