What is the LDW/CDW that rental car companies offer? Is it mandatory to get this coverage?

LDW - Loss Damage Waiver


CDW - Collision Damage WaiverWhat is the LDW/CDW that rental car companies offer? Is it mandatory to get this coverage?
It is not mandatory but - I get asked this question all the time. I tell my insureds to buy it %26amp; here's why: You have a contract with the rental car company %26amp; you have to abide by it, your insurance company does not. If you have collision %26amp; comprehensive on your personal auto policy, your insurance company will only pay actual cash value of the vehicle, less your deductible listed on your policy. The rental car company may want replacement value. Your company reserves the right to inspect the vehicle %26amp; if the rental car company just fixes the car immediately, your company can deny coverage based on this. Your company will not pay excessive labor rates. Your company will not pay administrative fees or excess towing charges. Your company will only pay loss of use if the rental car company can prove all the vehicles of that type were rented off their lot while the car was being repaired %26amp; the rental car company will want loss of use for the whole time. The rental car company may just charge your credit card for the damages %26amp; you have to contact your insurance company to try to collect. Then, if all works out %26amp; your company pays for the damages, if your company pays over a certain amount, it is a CHARGEABLE accident on your policy which could increase your rates (for 3 years usually) %26amp; if you have other claims on your policy, could result in nonrenewal. Is it worth the chance to be out all that money to save a few dollars when you rent the car???


Also, to have any coverage on your own policy for a rental, you MUST be the named insured, you cannot just be a listed driver.


Now, word of advice, DO NOT let ANYONE drive the car that is not listed on the rental agreement. ONLY the owner of the vehicle can give someone permission to drive %26amp; the owner is the rental car company. We recently had a rental car claim that was denied because the person that rented the car let someone else drive that was not on the contract. He has to pay the entire damages out of his pocket, collision, liability, everything.


Also, inspect the vehicle with a fine toothed comb with the rental car agent. Write down EVERY scratch, EVERY ding on the car %26amp; both of you sign this. I have seen rental car companies try to blame damage on one of my insureds that they are positive they didn't do, so, this is in your best interest to be sure the car is in the same condition when you return it as when you got it. If everything is written down before you get the car, you have the proof.What is the LDW/CDW that rental car companies offer? Is it mandatory to get this coverage?
No. Check if your credit card company covers you. Same thing with your personal car insurance.