What is the difference between CDW and LDW? This question is about Collision Damage Waiver

What is the difference between CDW and LDW?

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This question is about Collision Damage Waiver

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@WalletHub • 05/26/21 This answer was first published on 05/26/21. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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The difference between a CDW and an LDW is that a CDW, or collision damage waiver, only covers you for damage done to a rental car in a crash. An LDW, or loss damage waiver, combines a CDW with theft protection in case the car is stolen. Some rental car companies, like Avis, use the terms CDW and LDW interchangeably, so it’s best to read the coverage details carefully.

Collision damage waivers and loss damage waivers are optional types of coverage sold by rental car companies and third parties. Drivers can usually buy these waivers at the rental car counter for around $10-$30 per day. However, it’s important to note that collision and loss damage waivers do not provide liability insurance, which pays for damage you cause to others and their property. Instead, rental cars in most states automatically come with liability coverage. Drivers with standard car insurance policies will usually have liability insurance from their personal insurer, too.

To decide if you should purchase a CDW or LDW, check out WalletHub’s complete guides to collision damage waivers and rental car insurance.

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What is a waiver of subrogation?

A waiver of subrogation is a legal clause that prevents an insurance company from recovering the money they paid on a claim from the responsible party’s insurer. In car insurance, a waiver of subrogation usually keeps the not-at-fault driver’s insurer from recouping claims payments from an at-fault driver.

Waiver of Subrogation Example... read full answer

Say Driver B ran a red light and hit you when you were driving legally. You need your car repaired soon, but Driver B won’t admit fault, so you file a collision claim with your own insurance company and pay your deductible.

Then, your insurer begins the process of subrogation, negotiating with Driver B’s insurance company to try to replace the money it paid for your claim. You will even get your deductible back if subrogation is successful.

However, Driver B may offer to pay a set sum for the damage if you agree to sign a waiver of subrogation. Signing this waiver would mean forfeiting your right to get any more money from Driver B or his insurance company, regardless of any expenses from the accident that might arise in the future.

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Does Allianz offer rental car insurance?

Yes, Allianz does offer rental car insurance. The Allianz rental car insurance plan is called Rental Car Damage Protector, and it provides coverage for accidents and theft, up to $40,000, in the form of a collision damage waiver.

Allianz rental car insurance also includes trip interruption coverage, baggage loss/damage coverage, and access to a 24-hour emergency assistance service. The coverage costs $9 per day or $7 per day for Florida residents.... read full answer

Allianz Rental Car Insurance Coverage

Collision Damage Waiver ($40,000 limit) - Covers your rental car if it’s damaged in a covered accident or while left unattended. Also covers the cost of replacing the vehicle if it’s stolen.

Trip Interruption ($1,000 limit) - Covers extra transportation costs needed to get you home because of a covered incident. Also reimburses you for the unused, usually non-refundable portion of your rental contract.

Baggage Loss/Damage ($1,000 limit) - Covers the loss, theft, or damage of luggage and other personal possessions.

24-Hour Hotline Assistance - Provides 24/7 access to Allianz Global Assistance, a multilingual assistance team that helps customers navigate travel emergencies like finding local medical and legal professionals, sending messages home, replacing lost or stolen travel documents, and more.

Allianz Rental Car Insurance vs. Popular Competitors

Company	Price
Allianz	$9 per day ($7 per day for FL residents)
Bonzah	$7.99 per day
Insure My Rental Car	$9.75 per day (can vary by state)
P'teet	$9 per day ($7 per day for FL residents)
Rental Cover	$12 per day

Keep in mind that Allianz rental car insurance coverage options and limits may vary by state.

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What is CDW insurance?

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