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LDW isn’t insurance – it's an option that relieves you of financial responsibility if the rental car is damaged or stolen. LDW is highly recommended for the uninsured but even if you own a car and have automobile insurance, you should consider accepting Loss Damage Waiver to better cover yourself.

  • Alleviates your responsibility for up to the full fair market value of the car if it is damaged, vandalized or stolen during the rental;
  • Alleviates your responsibility for reimbursing the car rental company for any revenue lost during the period that the company is unable to use the car while it is being repaired, or in the event that the car is not recovered due to theft (loss of use).

If LDW is available for your rental, it will appear as a selection on step three of the budget.com reservation process.

Some additional things to note about Loss Damage Waiver

  • LDW is not available in all states, and certain restrictions may apply in some states, Please ask your counter representative for details;
  • 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.
  • At non-U.S. locations, LDW is not available but Collision Damage Waiver (CDW) coverage may be available which is similar.

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 for coverage limitations before you pick up your rental car. Many policies do cover rental cars, but even if you have personal automobile insurance, you may not be totally protected.

  • If you decline LDW and rely on your

    own insurance, 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 and you probably would be responsible for paying your usual deductible;

  • You also may be responsible for reimbursing the car rental company for any revenue lost during the period that the company is unable to use the car while it is being repaired, or in the event that the car is not recovered due to theft (loss of use). A loss-of-use fee for a damaged rental car is not normally covered by personal auto insurance policies;
  • Personal auto policies may only provide a coverage limit equal to the value of the vehicle scheduled on that policy. If the value of the renter's personal auto is less than that of the rental vehicle, the renter could still incur some damage responsibility.

Credit Card Coverage
Some credit card companies offer protection if you present their card at the time of rental, and if you use the same card to pay for your rental at the time of return. Renters should closely examine the terms of this coverage because the protection is often supplemental, and certain limitations or restrictions may apply.Remember - if the insurance doesn't cover your loss, you will remain personally responsible for any difference.

Travel Package Coverage
Many companies that sell online travel packages (airline, rental cars and hotels) offer insurance protections that claim to cover rental cars. Renters should closely examine the terms of this coverage because the protection is often supplemental, and certain limitations or restrictions may apply. Also, some of those packages might not protect you entirely for any loss or damage to the rental vehicle.Remember - if the insurance doesn't cover your loss, you will remain personally responsible for any difference.



Category: Auto Insurance

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