loss damage waiver (LDW)

A Loss Damage Waiver (LDW) is a rental car company's way of reducing your financial responsibility if the vehicle is damaged or stolen during your rental period. It’s not insurance but an agreement that releases or limits your liability for repairs or replacement costs. If you purchase LDW, you typically won’t have to pay out-of-pocket expenses for damage or theft, though there might be exceptions. Essentially, it provides peace of mind by covering unexpected damages, making the rental experience less stressful. Always review the specific terms, as coverage details and exclusions can vary between providers.