Last Updated on December 29, 2024 by Kristin
If you buy the car rental company’s collision damage waiver (CDW) to avoid paying for any damages during an accident, that means you’re completely covered, right?
Wrong. Even though you may have paid a pretty penny for a CDW, the policy may not cover certain damages to the vehicle. A similar loss damage waiver (LDW) may provide a bit more peace of mind if it covers theft as well. But still, there may be scenarios that neither plan can help fix.
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The CDW or LDW typically costs between $20 and $30 per day, depending on the level of coverage, the region and the vehicle model. But it’s important to understand what the CDW or LDW includes before arriving at the rental counter, and doublecheck with your credit card company or personal auto insurance policy to see if you need additional products.
Here are eight things your rental car CDW likely does not cover.
Bodily Injuries
The most important thing to know about a CDW or LDW is that it covers damage to the car — not any bodily injuries to you or other drivers. Car rental companies may include the minimum amount of liability coverage in their rates depending on the state, and your personal auto insurance policy should include liability coverage. However, you may choose to purchase optional supplemental liability insurance (SLI) from the rental company if you need it.
Damage to Other Vehicles and Property
The CDW does not cover damages to other vehicles or property in the event of an accident. This would also be covered by liability insurance. If you do not have your own auto insurance policy with liability insurance, you may want to consider SLI.
EV Component Damage
The CDW or LDW does not typically cover damaged or lost charging equipment for electric vehicles (EVs). You can also expect to pay for towing charges if you run out of battery when driving an EV.
Stolen Personal Items
If someone steals personal items from your rental car, these will not be covered by the CDW or LDW. The LDW typically covers theft and vandalism, provided the renter files a police report immediately.
Certain Car Components
While the CDW covers damage to the rental car in case of an accident, it may not cover damage to certain components. Excluded components may include the car’s engine, battery, tires, mirrors, roof or undercarriage. These components may be excluded or minimally covered depending on the agreement. If you get a flat tire, for example, fixing it would be covered by roadside assistance — not the CDW or LDW.
Lost Keys
The CDW or LDW may not include lost key fobs, although this depends on the specific agreement. Be sure to read the fine print to see if your agreement covers lost keys. For example, Hertz’s LDW typically covers lost keys (excluding towing or taxi charges), but not all agreements do.
Using the Wrong Fuel
The CDW or LDW usually does not cover damages to components from putting the wrong type of fuel in the car. It’s hard to mistakenly put diesel into an unleaded-fuel tank in the United States. Diesel fuel nozzles are intentionally larger than those for unleaded fuel. But when driving in the United Kingdom, for example, it’s possible to put unleaded fuel into a diesel tank. To make matters worse, the color-coded fuel handles are not the same as in the US. This can be a very expensive mistake, so be careful in foreign countries, where diesel pumps are
A Replacement Tire
The CDW or LDW typically does not cover a new tire if you get a flat. Your best defense is to check the tire treads before you set off on your trip.
Damage From Unpaved Roads
The CDW or LDW will not cover any damages caused by situations that void the rental agreement. This includes situations such as driving on unpaved or flooded roads, as well as drunk driving.
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As always, read the fine print of your rental agreement when making a reservation to ensure you understand the company’s policies, and ask about any doubts in advance.
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