Rental Car CDW/LDW Insurance
Understand collision damage waiver coverage and how to use it instead of rental company insurance.
- •Covers damage/theft of rental cars—decline the rental company's CDW
- •Primary vs secondary is the KEY differentiator (check your card)
- •Common exclusions: Ireland, Italy, Israel, Jamaica, Australia
- •Max rental period typically 15-31 days (varies by card)
- •Vehicle MSRP limits typically $50K-$75K
Benefit terms and coverage may vary. Always verify details with your card issuer before filing a claim. Information shown may not reflect recent changes to your card's benefits.
How Rental Car CDW Works
Rental car collision damage waiver (CDW) coverage protects you from financial liability when a rental vehicle is damaged or stolen. When you pay for the rental with your covered card and decline the rental company's CDW/LDW, your card's insurance activates automatically.
What's Covered
- •Theft of the rental vehicle
- •Collision damage to vehicle body and frame
- •Valid loss-of-use charges (with documentation)
- •Reasonable towing charges to nearest repair facility
- •Administrative fees charged by rental company
What's NOT Covered
- •Liability for damage to other vehicles or property
- •Bodily injury to anyone
- •Personal belongings left in the vehicle
- •Damage from off-road or unpaved road use
- •Vehicles rented in excluded countries
- •Luxury/exotic vehicles exceeding MSRP limits
- •Rentals exceeding maximum duration
- •Damage when unauthorized driver was operating vehicle
- •Peer-to-peer rentals (Turo, Zipcar)
Primary vs Secondary Coverage
This is the most important distinction for rental car coverage. Primary coverage pays first—you don't need to file with your personal auto insurance. Secondary coverage only kicks in after your personal auto insurance pays, which can raise your premiums.
Cards with primary coverage (like Chase Sapphire Reserve and Capital One Venture X) are significantly more valuable for rental car protection. Cards with secondary coverage (like Amex Platinum's standard benefit) require you to exhaust personal insurance first. Check the Coverage Comparison table for your card's coordination type.
Why Claims Get Denied
- •Did not decline rental company's CDW (accepting it voids card coverage)
- •Rental exceeded maximum duration (15-42 days depending on card)
- •Vehicle exceeded MSRP limit ($50K-$75K typical)
- •Rented in excluded country (Ireland, Italy, Israel, Jamaica common)
- •Unauthorized driver was operating the vehicle
- •Drove on unpaved or off-road surfaces (even gravel roads)
- •Didn't pay entire rental with covered card
- •Rental from peer-to-peer service (Turo excluded)
- •Loss-of-use charges not properly documented by rental company
Claim Basics
- •Contact benefit administrator within 45-100 days of incident
- •Gather rental agreement, damage photos, and repair estimates
- •For secondary coverage: file with personal auto insurance first
Exact claim steps vary by issuer. Photograph the vehicle from all angles at pickup and return—this protects against disputes.
Documentation Checklist
- •Rental agreement showing full payment with covered card
- •Credit card statement proving the charge
- •Police report (required for theft, recommended for damage)
- •Photos of damage from multiple angles
- •Rental company's damage report with repair estimates
- •Repair invoices and receipts
- •Loss-of-use documentation from rental company (fleet utilization log)
- •Pre-rental vehicle condition photos (if available)
Coverage Comparison
| Card | Annual Fee | Coverage Limit | Coverage Scope | Payment Requirement | Covered Parties | Coverage Type | Max Rental Days |
|---|---|---|---|---|---|---|---|
$795 | $75,000 | Per Covered Loss | Purchase in full | Cardholder | Primary | 31 days | |
$795 | $75,000 | Per Covered Loss | Purchase in full | Cardholder | Primary | 31 days | |
$450 | $75,000 | Per Covered Loss | Purchase in full | Cardholder | Primary | 31 days | |
$395 | $75,000 | Per Covered Loss | Purchase in full | — | Primary | 15 days | |
$395 | $75,000 | Per Covered Loss | Purchase in full | — | Primary | — | |
$395 | $75,000 | Per Covered Loss | Purchase in full | — | Primary | — | |
$550 | $75,000 | Per Covered Loss | Purchase in full | — | Primary | — | |
$895 | $75,000 | Per Covered Loss | Purchase in full | — | Secondary | — | |
$650 | $75,000 | Per Covered Loss | Purchase in full | — | Secondary | — | |
$550 | $75,000 | Per Covered Loss | Purchase in full | — | Secondary | — | |
$650 | $75,000 | Per Covered Loss | Purchase in full | — | Secondary | — | |
$895 | $75,000 | Per Covered Loss | Purchase in full | — | Secondary | — | |
$95 | $60,000 | Per Covered Loss | Purchase in full | — | Primary | 31 days | |
$150 | $50,000 | Per Covered Loss | Purchase in full | — | Secondary | — | |
$150 | $50,000 | Per Covered Loss | Purchase in full | — | Secondary | — | |
$125 | $50,000 | Per Covered Loss | Purchase in full | — | Secondary | — | |
$95 | Contact issuer | — | Purchase in full | — | Primary | 31 days | |
$595 | Contact issuer | — | Purchase in full | — | Primary | — | |
$95 | Contact issuer | — | Purchase in full | — | Secondary | 15 days | |
$95 | Contact issuer | — | Purchase in full | — | Secondary | — | |
$375 | Contact issuer | — | Purchase in full | — | Secondary | — | |
$325 | Contact issuer | — | Purchase in full | — | Secondary | — |
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