Quick Summary:
- CDW excess is the amount you pay before cover contributes.
- In Florida, excess applies to damage or theft, not liability.
- Your rental agreement states the excess figure, often per incident.
- You can reduce excess by choosing options or separate excess cover.
When you arrange car hire in Florida, you will often see cover terms such as CDW, LDW, excess, deductible, and deposit. They can look similar, but they affect what you might pay if the vehicle is damaged or stolen. The key idea is simple, CDW excess is the part of a claim you may still have to pay yourself, even when collision damage is covered.
This guide explains what CDW excess means in Florida, how it is usually applied by rental companies, what it does and does not cover, and how to read your paperwork so there are no surprises at the counter.
What CDW means in Florida car hire
CDW stands for Collision Damage Waiver. In many US rental contracts it is described as a waiver rather than insurance, because the rental company agrees to waive some or all of its right to charge you for certain types of damage, as long as you follow the rental terms.
In Florida car hire, CDW is commonly bundled with theft protection, sometimes labelled LDW (Loss Damage Waiver). The wording differs by supplier, but the purpose is similar, to limit your responsibility for damage to, or loss of, the rental vehicle.
So what is CDW excess, exactly?
CDW excess is the maximum amount you may have to pay towards a covered damage or theft loss. It is also commonly called a deductible. If the excess is £0 or $0, you generally pay nothing for covered damage, provided no exclusions apply.
Think of it as the first part of the bill that stays with you. If repairs cost less than the excess, you may pay the full repair cost. If repairs cost more than the excess, you normally pay up to the excess and the waiver covers the rest, subject to the rental agreement.
Why CDW excess matters on a Florida rental
Florida is a busy driving state with heavy motorway traffic, frequent rainstorms, and lots of car parks. Minor knocks, windscreens chips, and bumper scrapes are common reasons for claims. With car hire, a clear understanding of your excess helps you budget for worst case scenarios and decide whether you want to reduce that risk.
It also matters because the rental company may place a security deposit on your payment card. That deposit can be influenced by the level of excess and the type of cover you accept. Even if you never have an incident, the deposit affects your available credit while you travel.
Is CDW excess the same as the deposit?
No. The deposit is a temporary authorisation or hold placed on your card at pick up. It is there to cover potential charges such as damage, missing fuel, toll administration fees, or extra days. The CDW excess is the amount you may be liable for if a covered damage or theft claim occurs.
You can have a high deposit with a low excess, or a low deposit with a higher excess, depending on the supplier, your chosen options, and how they structure cover.
What CDW excess usually covers, and what it does not
CDW and its excess generally relate to damage to the rental vehicle and theft, not injuries or damage you cause to other people. In Florida and the wider US, liability is handled under separate cover and legal requirements, and it is not what CDW is designed for.
However, CDW does not mean everything is automatically covered. Common exclusions and limitations may include:
Unauthorised drivers, if someone not listed drives and an incident happens.
Breach of contract, such as driving under the influence, off-road use, or using the vehicle for prohibited purposes.
Negligence or failure to report damage promptly, depending on contract terms.
Specific parts, sometimes glass, tyres, roof, underbody, or interior damage have different treatment. This varies, so the rental agreement is the authority.
Is the excess charged per claim or per rental?
Often it is per incident. That means two separate incidents on different days could each trigger an excess. If you reverse into a post on day two and later get a separate scrape in a car park, the supplier could treat them as two claims.
Some contracts may treat related damage as one incident if it clearly arises from the same event, but you should not assume that. Always check how the supplier defines an incident in their terms.
How you actually pay the CDW excess in Florida
In a typical scenario, the rental company does not collect the excess in advance, but they have your card details and a deposit authorisation. If there is damage, they may charge your card for the repair costs up to the excess amount, plus possible associated costs allowed in the contract.
Those additional costs can include loss of use (the time the car is out of service), administration fees, and sometimes diminution of value. Whether these apply, and how they are calculated, depends on the supplier and the agreement you sign. If you are relying on separate excess reimbursement cover, it is especially important to know what types of charges it will reimburse.
Where to find the excess amount before you travel
For most car hire bookings, you can find the excess amount in:
The rate inclusions, where CDW or LDW is listed along with an excess figure.
The rental terms, often shown as “deductible” or “customer responsibility”.
Your voucher or booking confirmation, which may summarise the excess and deposit rules.
At the counter, the rental agent can also confirm the figure that applies to the specific vehicle class you are collecting. Always ensure the number matches what you expected before you sign.
CDW vs LDW vs SLP, common Florida terminology
Florida rental counters can present several cover options quickly. Understanding the labels helps you focus on what relates to excess.
CDW, collision damage waiver, relates to damage to the rental car.
LDW, loss damage waiver, often combines collision and theft, sometimes with broader scope than CDW alone.
SLP or supplemental liability protection, relates to third-party liability. This is separate from CDW excess, which is about the rental vehicle.
PAI/PEC personal accident and effects cover, relates to occupants and belongings, not the car’s bodywork.
Ways to reduce your out-of-pocket risk from CDW excess
There are two common routes for travellers who want less exposure to the excess amount during Florida car hire.
1) Choose a rental option with lower excess. Some packages include CDW with a reduced deductible, and some include a zero-excess waiver. The trade-off is usually a higher daily price.
2) Use separate excess cover. Many travellers use third-party excess reimbursement insurance. In that model you might still be charged by the rental company first, then you claim the amount back from the insurer, subject to the insurer’s terms. This can be cost-effective, but it requires you to keep documentation such as the damage report, invoice, and repair estimate.
Whichever route you take, check whether it covers the extra items that can appear on a damage invoice, such as towing, loss of use, or admin fees.
Florida-specific practical tips for avoiding excess charges
Photograph the car at pick up and return. Get clear images of all panels, wheels, glass, the roof line, and the interior. Time-stamped photos can help resolve disputes.
Report any damage immediately. If you notice a scratch that was not recorded, raise it before leaving the car park. If damage happens during the rental, follow the supplier’s accident procedure and obtain a police report if required.
Be careful with toll roads. Florida has extensive tolling. While tolls are not part of CDW excess, toll administration fees can create unexpected charges. Make sure you understand the toll option you choose.
Mind the weather. Heavy rain can reduce visibility and increase stopping distances. Many damage claims are low-speed and avoidable with extra caution.
How this relates to choosing the right car hire location
If you are collecting in South Florida, terms can vary by supplier and vehicle class, so it is worth comparing like-for-like cover. For example, travellers looking at Fort Lauderdale options may compare different excess levels and deposit requirements, alongside vehicle type and counter hours. Hola Car Rentals provides rental search and booking across multiple locations and vehicle groups, including Avis car rental at Fort Lauderdale FLL.
Families and groups often prefer larger vehicles, and excess amounts can differ between compact cars and people carriers. If you are considering a larger option for Florida driving, you can review the vehicle class details and included cover for minivan hire in Florida MIA.
If your trip includes other US destinations, keep in mind that CDW excess conventions can be similar, but the exact figures and included cover vary by state, location, and supplier. You can see how offers compare in other markets such as car rental in Las Vegas LAS or car hire in Portland PDX.
Common misunderstandings about CDW excess in Florida
“CDW means I will not pay anything.” Not necessarily. If there is an excess, you may pay up to that amount. If exclusions apply, you may be liable for more.
“My credit card covers everything automatically.” Some cards offer rental cover, but eligibility, vehicle types, and claim rules vary. You still need to know the rental contract terms and what the card benefit does and does not cover.
“The cheapest rate is always best.” A lower daily price can come with a higher excess or stricter conditions. Comparing the total risk, including deposit impact, often gives a clearer picture.
What to check in your rental agreement before signing
Before you finalise your Florida car hire, look for these items in writing:
The deductible amount for collision damage and theft.
Covered parts, especially glass, tyres, roof, and underbody.
Admin, towing, and loss-of-use clauses, so you understand possible extra charges.
Driver rules, ensuring all intended drivers are authorised.
Accident reporting steps, including time limits and police report requirements.
Taking a minute to confirm these points can prevent the most common disputes around excess and chargebacks later.
FAQ
What does “excess” mean on a Florida rental car?
It is the amount you may have to pay towards a covered damage or theft claim before the waiver or cover applies, often called the deductible.
Is CDW excess the same as liability insurance in Florida?
No. CDW excess relates to damage or theft of the rental vehicle. Liability cover relates to injury or property damage you cause to others.
Can I be charged more than the CDW excess?
Yes, if an exclusion applies or if the contract allows other charges such as towing or certain fees. Always check the supplier’s terms.
Will I pay the excess immediately if there is damage?
Usually the rental company charges your card for assessed costs up to the excess, after inspection and documentation. Timing varies by supplier.
How can I lower my CDW excess on Florida car hire?
You can select a rate with a reduced or zero excess, or use separate excess reimbursement cover, ensuring it matches the supplier’s charge types.
