While your personal automobile policy does extend to your rental car, there are several coverages that don’t extend and could cost you a hefty amount. When you rent a car, the rental company will always suggest 2 types of coverage:  increased liability and Loss Damage Waiver. If you have a proper personal auto policy, then you most likely don’t need the additional liability coverage that will extend for your policy, even though it usually is inexpensive.  On the opposite side, while the LDW waiver can be expensive, there are a few valuable reasons for the increased cost that you should consider.

Loss of Use Cost

This may be the most important reason to consider the LDW. If you damage a rental car, then the rental car company has the ability to charge you for everyday that the car can’t be rented out while being repaired. If you rent a car that cost $45 per day and repairs take 2 weeks, then you could be charged an additional $630.

Personal Claims Record

While your comprehensive and collision coverage does extend to a rental car, any claim you file would fall on your personal insurance claims history. If you purchase the LDW, then the claim would never show up on your claims history.

Ease of Use

If you purchase the LDW and a claim occurs, then you don’t have to worry about the claims process. You would just hand the keys to the rental company, and they will handle repairing the car.

Deductible Savings

You may have a higher deductible or no physical damage coverage on your personal automobile policy. If this is the case, then you would be out-of-pocket your deductible to help repair the car.

As you are considering how the LDW may save you money over time, also remember to check if your credit card company provides any rental car coverage. Several credit card companies now offer primary insurance for your rental and may cover the LDW for you.


Consider all your options and future cost while determining how best to protect yourself when renting an automobile.  Your future financial situation will thank you!

For an example of how the LDW was a wise choice for a consumer, view the article by Bill Wilson here.

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