Quick Summary:
- Check the excess amount and what events trigger it.
- Compare CDW, LDW and SLI by inclusions, not names.
- Confirm whether tyres, glass and underbody are excluded or capped.
- At the counter, match deposit and deductible to your chosen cover.
Choosing the right excess for a United Estates car hire can feel like decoding a contract at a busy counter. You see terms such as CDW, LDW, SLI, deductible, deposit, waiver, plus a menu of “extra protection” products. The key is to focus on what you are actually risking, when you would have to pay, and how much you could realistically be out of pocket.
This guide explains how excess typically works across common cover levels in the United Estates, what is often excluded, and how to compare like for like so you avoid paying for overlapping protection. If you are reviewing options on Hola Car Rentals, start with the overall United Estates landing page to see typical inclusions and supplier variations: car rental United States.
What “excess” means in US car hire
In car hire, the excess is the amount you may have to pay towards a covered claim before the supplier’s cover (or waiver) applies. It is often expressed as a fixed dollar amount per incident. If the excess is $1,000 and you have damage covered under the agreement, you could be charged up to $1,000, with the remainder handled by the supplier’s cover.
Two points confuse many travellers:
Excess is not the same as deposit. The deposit is a temporary hold on your card, usually larger than the excess, used to secure the vehicle and potential charges. The excess is the portion of a damage or theft claim you are responsible for.
Waivers can still have deductibles. In the United Estates, CDW or LDW are often described as a “waiver”, not “insurance”. Even so, you can still have a deductible (excess). Always read the deductible figure and the list of exclusions.
Common cover levels and how excess shows up
US car hire cover is usually presented in layers. Names vary by supplier, which is why comparing by what is included is more reliable than comparing product names.
Base rate with limited cover
Some rentals include only the minimum required liability cover and a collision waiver with a high excess, or they may exclude collision cover entirely unless you add it. If collision is not included, you could be responsible for the full vehicle value if something happens. This is where overpaying can occur, because people accept every counter offer without checking what was already included in the rate.
CDW (Collision Damage Waiver) or LDW (Loss Damage Waiver)
CDW usually relates to collision or damage to the rental vehicle. LDW often combines collision and theft, but wording differs. Either way, the excess is typically tied to this waiver. You should confirm:
The deductible amount. This is the figure you could be charged per claim.
What “damage” includes. Many policies exclude specific parts such as glass, tyres, wheels, roof, underbody, and interior.
What behaviours void cover. Common examples are driving off paved roads, unauthorised drivers, intoxication, or breaching the rental agreement.
When comparing suppliers, it can help to review specific brand pages, because terminology can differ even when the concept is the same. For example, you can cross check typical inclusions on pages such as Alamo car rental United States and Avis car rental United States.
SLI (Supplemental Liability Insurance) and why it is separate
SLI is about liability to third parties, not damage to the rental car. It does not reduce your collision excess. Travellers overpay when they buy SLI thinking it reduces their deductible for damage. It can be valuable, but it solves a different risk. Always separate “damage to the hire car” from “claims from other people”.
How to decide what excess you can live with
A practical way to choose the right excess is to treat it as a budgeted worst case, not an abstract number. Ask yourself what you could pay without stress if something happens on day two of a two week trip.
Step 1: Identify the maximum you could be charged. This is not always the headline deductible. It can include:
Damage excess up to a stated amount.
Administrative fees for processing a claim.
Loss of use charges while the vehicle is repaired, sometimes with a daily cap, sometimes not.
Diminished value claims in some cases, depending on terms.
Step 2: Compare against your deposit and card limit. Even if you can afford a $1,000 excess, you also need to be able to carry the deposit hold. A lower deductible product can sometimes come with a lower deposit, but not always. Your goal is to avoid a surprise card hold that squeezes your travel budget.
Step 3: Consider your driving context. City parking, long highway miles, winter conditions, and rural roads each affect likelihood of minor damage. If you expect tight parking or long mileage, a lower excess can be rational. If you are doing short, low risk driving, a higher excess may be acceptable, provided exclusions are not harsh.
Where people overpay at the counter
Counter upsells often exploit uncertainty. You can avoid overpaying by understanding the most common mismatches between what you think you are buying and what it actually changes.
Paying for a “zero excess” product that still has exclusions
Some “zero deductible” products reduce the collision deductible to $0 but still exclude tyres, glass, roof, underbody, and towing. If your typical risk is a cracked windscreen on a highway, a zero collision deductible does not help if glass is excluded or capped.
Instead of focusing on “zero excess”, ask, “Which parts of the car are excluded, and what are the fees?” That single question often reveals whether the extra spend matches your risk.
Buying liability cover to fix a collision excess problem
As noted, SLI does not reduce the collision deductible. If the concern is paying for vehicle damage, you need a product that changes the deductible or covers excluded parts, not one that increases third party liability.
Paying twice through overlapping cover
Many travellers already have some protection via a premium credit card, or a separate annual travel policy. Overlap is not always bad, but it is wasteful if you are paying for the same risk twice and one cover would have been sufficient.
Before you accept counter products, check your existing documents for three things:
Does your existing cover apply in the United Estates? Some policies exclude US rentals.
Does it cover the vehicle or just liability? These are different.
Is it reimbursement only? Many third party covers reimburse you after you pay the supplier, which means you still need card capacity for the deposit and any charges.
Compare like for like: a counter checklist
When you are comparing cover levels across suppliers or deciding whether to add protection, focus on a consistent set of questions. This is how you turn confusing product names into comparable facts.
1) What is the deductible for collision and theft? Get the number in writing on the agreement.
2) What is excluded or limited? Specifically ask about glass, tyres, wheels, underbody, roof, mirrors, interior, keys, and towing.
3) What fees can be added on top? Claim administration, appraisal fees, loss of use, diminished value.
4) What is the deposit hold with each option? Ensure your card limit can carry it.
5) Who is covered as a driver? Additional drivers and young driver surcharges can interact with cover validity.
6) What incidents void the waiver? Off road driving, driving on restricted roads, speeding violations, or leaving the scene can all void cover.
To keep comparisons tidy, pick two or three suppliers and request the same information. If you are looking at larger vehicles, note that repair costs can be higher, which makes the deductible feel larger in practice. If that fits your trip, you can review options on SUV hire United States.
Understanding “excess reduction” versus “excess reimbursement”
Two approaches can lead to very different experiences.
Excess reduction at the counter usually means the supplier reduces your deductible on the spot. This can also reduce the deposit hold. It is convenient because it can prevent a large charge if something happens, but it can be expensive for longer rentals.
Excess reimbursement means you still pay the supplier if they charge you, then you claim back later from a third party policy. This can be cost effective, but it requires cash flow and good documentation. It also may not cover every fee the supplier charges.
Neither is universally better. The right choice depends on your card limit, appetite for paperwork, and how much certainty you want during the trip.
What you are really risking: realistic scenarios
To choose the right excess without overpaying, think in scenarios that match common US driving conditions:
Car park scrape or bumper scuff. Often within the deductible, plus admin fees. Lower excess can prevent an annoying bill.
Windscreen chip on an interstate. Frequently excluded or capped. Check glass rules before you pay for “zero deductible”.
Tyre damage from potholes. Often excluded. If your route includes rough roads or winter debris, tyre and wheel cover may matter more than a lower collision excess.
Theft of the vehicle or break in. Theft deductibles vary. Also confirm whether personal items are ever covered, usually not by the car hire cover.
Towing after an incident. Towing is commonly excluded unless you bought roadside assistance, so confirm how towing is handled.
How to avoid confusion when supplier brands differ
Large brands and budget brands may package cover differently and use different names for similar features. If you are comparing across known supplier families, use the same checklist and focus on the deductible and exclusions rather than the marketing name. For instance, you can compare baseline expectations across brands like Dollar car hire United States and others you are considering.
Also watch for differences between prepaid rates and pay later rates. The included cover can change with rate type, location, and vehicle class. The most reliable method is to read the inclusion list on your quote and then confirm the deductible and deposit terms at pick up before signing.
Practical rule of thumb for not overpaying
If you want a simple decision rule:
Choose the lowest excess you can afford without buying cover for exclusions you still face. That means you prioritise cover that meaningfully reduces your likely out of pocket costs, not just a headline “zero” number. If tyres and glass are excluded and those are your main worries, a lower collision deductible alone may not be worth it. Conversely, if your main worry is a minor scrape in a car park, reducing the deductible can be cost effective peace of mind.
Finally, keep your comparison like for like. Write down deductible, deposit, exclusions, and fees for each option. When you view those four lines side by side, the best value is usually obvious.
FAQ
What is the difference between excess and deposit in US car hire? Excess is the amount you may pay towards a covered damage or theft claim. A deposit is a card hold to secure the rental and potential charges.
Does LDW or CDW always mean zero excess? No. Many LDW or CDW options still have a deductible, and they can exclude items like glass, tyres, wheels, roof or underbody.
Will buying SLI reduce my excess for vehicle damage? Usually not. SLI relates to third party liability. It does not typically change the collision or theft deductible for the hire car.
Why do two similar quotes have different excess amounts? Suppliers package cover differently by location, vehicle class and rate type. Always compare the deductible, exclusions, fees and deposit hold, not just the daily price.
What should I ask at the counter to compare like for like? Ask for the collision and theft deductible, what parts are excluded, what fees apply after a claim, and how the deposit hold changes with each cover option.
