Car Rental Insurance Explained: CDW/LDW vs Credit Card & Personal Auto
Understand Collision Damage Waiver (CDW), Loss Damage Waiver (LDW), Supplemental Liability Protection (SLI), and primary vs secondary credit card coverage.
Senior Travel Editor & Aviation Specialist
Guide Key Takeaways & Overview
Understand Collision Damage Waiver (CDW), Loss Damage Waiver (LDW), Supplemental Liability Protection (SLI), and primary vs secondary credit card coverage.
Key Travel Facts & Insights
- Waives financial liability for collision damage, theft, & vandalism
- Eliminates out-of-pocket deductibles and loss-of-use fees
- Primary credit card coverage (e.g. Chase Sapphire Reserve) can act as CDW
- Supplemental Liability Protection (SLI / LIS)
Collision Damage Waiver (CDW) & Loss Damage Waiver (LDW)
CDW/LDW relieves the renter of financial responsibility if the rental car is damaged or stolen. It is not technical insurance, but a contractual waiver between you and the rental company.
- Waives financial liability for collision damage, theft, & vandalism
- Eliminates out-of-pocket deductibles and loss-of-use fees
- Primary credit card coverage (e.g. Chase Sapphire Reserve) can act as CDW
Supplemental Liability Protection (SLI / LIS)
Liability protection covers damage to other vehicles or injuries to third parties. If your personal auto insurance policy does not extend to rental cars, purchasing SLI is strongly recommended.
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Frequently Asked Questions
Does my personal auto insurance cover rental cars in the US?
Most personal US auto insurance policies extend collision and liability coverage to rental cars driven within the United States and Canada.
Do credit cards cover international rental car insurance?
Many travel credit cards provide worldwide secondary or primary CDW coverage, but usually exclude luxury vehicles, vans, and countries like Ireland, Jamaica, and Israel unless confirmed.