Quick Summary:
- Primary CDW/LDW pays first, so you usually avoid reclaim paperwork.
- Secondary CDW/LDW pays after other cover, increasing forms and delays.
- At the counter, confirm excess, exclusions, and who files the initial claim.
- Keep photos, incident reports, and receipts, whichever option you choose.
When you pick up a car hire in the US, “CDW” (Collision Damage Waiver) and “LDW” (Loss Damage Waiver) are the phrases that most often trigger confusion, especially when you see the words primary or secondary next to them. The difference matters because it changes who pays first if the vehicle is damaged or stolen, how much admin you face, and how exposed your bank card can be during the process.
This guide uses California as the practical backdrop, because the state’s busy roads, airport rentals, and long-distance itineraries make it common for travellers to encounter minor damage, windscreen chips, parking dents, or theft-related incidents. The goal is not to sell a policy, it is to explain how claims are typically handled depending on whether your cover pays first or pays after something else.
CDW vs LDW, and what “primary” and “secondary” really mean
CDW and LDW are waivers offered by the rental company or provided through a third party. They generally relate to damage to, or loss of, the rental vehicle. They are different from liability insurance, which covers injury or property damage to other people or their vehicles.
“Primary” and “secondary” describe the order of payment when more than one source of cover could respond. If cover is primary, it is designed to be the first payer for eligible damage to the hire car. If cover is secondary, it pays only after another policy has responded, or after it has been proven that no other policy applies.
In practical terms, primary cover tends to reduce how often you must claim elsewhere, while secondary cover tends to increase documentation because it must “coordinate” with other insurance. That coordination is what creates delays, letters, and additional forms.
How a claim usually works with primary CDW/LDW
With primary CDW/LDW, the rental company’s process is often simpler for you. After an incident, you report it, follow the rental company’s instructions, and the primary cover is intended to respond without requiring you to first claim on another policy.
Here is what this can mean in the real world of California car hire:
1) Fewer moving parts. You still need to file an incident report and provide evidence, but you are less likely to have to involve your personal insurer or a separate credit card benefits administrator before the rental claim can progress.
2) Faster resolution. Because the waiver is designed to be first in line, the rental company can often close the matter sooner, or at least decide your liability sooner, even if they still need repair invoices and loss-of-use calculations.
3) Reduced reimbursement steps. Some claims structures are “pay-and-reclaim”, where you pay first and seek reimbursement. Primary cover is more likely to avoid that, although it is not a guarantee. You must still read what your agreement says about charges, authorisations, and the excess.
4) Clearer risk boundaries. Even primary waivers usually have exclusions. Common examples include driving under the influence, unauthorised drivers, off-road use, or ignoring reporting requirements after a collision or theft.
If you are collecting at a major hub such as Los Angeles International Airport, review your agreement carefully before leaving the car park. Hola Car Rentals provides a range of options for car hire at LAX, and the key is to understand whether the protection you have chosen is intended to be primary or whether it sits behind another policy.
How a claim usually works with secondary CDW/LDW
Secondary CDW/LDW is not necessarily “bad”, but it does shift the admin burden. When cover is secondary, it typically requires you to pursue other available cover first, or to obtain formal confirmation that another policy declined. Only then does the secondary cover pay eligible remaining amounts.
That usually means:
1) More paperwork. You may need a denial letter or settlement statement from your primary insurer, plus the rental company’s damage estimate, repair invoice, and proof of payment.
2) More waiting. Claims can slow down while multiple parties communicate. The rental company wants payment, the primary insurer wants documentation, and the secondary provider wants proof of what the primary did.
3) Greater short-term card exposure. Even if you will eventually be reimbursed, the rental company may charge your card for damage, loss of use, towing, admin fees, or diminished value, depending on the contract and local practices. Secondary cover often works after those charges appear.
4) Higher risk of disputes about “what is covered”. If the primary policy limits certain items, the secondary policy may or may not pick them up. You need to know whether items like loss of use, admin fees, tyres, windscreens, roof damage, or underbody damage are included.
Travelling across California can involve city parking and motorway debris. If you are starting in the Bay Area, it helps to consider the practicalities of returning a damaged vehicle and obtaining paperwork from the branch. For context on locations and rental providers, see San Jose Airport car rental, where rental processes typically follow the same documentation pattern as other major airports.
Who pays first, and why that changes your workload
Think of “who pays first” as the engine that drives your administrative workload. When the first payer is straightforward, your claim is mostly between you and the rental company. When the first payer is unclear, you may need to build a “claim file” with letters, receipts, and reports.
Primary CDW/LDW: the waiver is designed to be the first payer for covered hire-car damage or theft. You still must comply with reporting and usage rules. If you breach the agreement, the waiver can be voided and you become responsible.
Secondary CDW/LDW: another policy is expected to pay first, often your personal motor insurer or a benefit attached to a credit card. If that other cover is limited, secondary protection may reimburse what remains, subject to its own limits and exclusions.
In both cases, the rental company may place a security deposit or authorisation on your card at pick-up. That is separate from who ultimately pays. The deposit is about risk management for the rental company, not a final statement about your cover.
Excess, deductibles, and what you may still pay
A common misunderstanding is that primary automatically means “zero cost to you”. Primary usually means first payer, not necessarily full payer. Many waivers come with an excess (also called a deductible), which is the amount you pay before the waiver contributes, or the amount you pay as your share.
Secondary cover can also have an excess, and it can be more complicated. If the primary policy has a deductible, you may pay that amount upfront. The secondary policy may reimburse that deductible, but only if its wording includes deductibles, and only if you meet its evidence requirements.
If you are choosing between rental providers and vehicle classes, remember that higher-value vehicles can amplify exposure because repair costs can be higher. Even a minor scrape on a people carrier can cost more than a small hatchback. When planning group travel, comparing options like minivan rental in San Jose can help you estimate what an excess might mean in pounds and pence, not just in abstract policy language.
Paperwork checklist that reduces risk for both types
Whether your CDW/LDW is primary or secondary, your success in a claim often depends on how complete your documentation is. Rental companies and insurers handle thousands of files, and missing pieces usually mean delays.
Before driving away: photograph all sides, the roof line if possible, windscreens, wheels, and the fuel level. Ensure any existing damage is recorded on the agreement or the inspection sheet.
After an incident: take photos of the scene, capture the other party’s details, and call the police when required or when anyone is injured. Ask the rental company what specific steps they require, and do them promptly.
At return: request written confirmation of the vehicle’s condition, even if the branch says they will “email later”. If they do charge you later, request the itemised damage breakdown, repair invoice, and dates the vehicle was out of service if loss of use is claimed.
This is especially relevant in California, where you might drop the car at a different location than you collected it. For example, travellers flying into one city and departing from another might rent near Los Angeles and return near Sacramento. If you are coordinating a one-way itinerary, knowing where you will return the vehicle can help you anticipate how easy it will be to obtain documents. You can see typical pick-up and return setups through Sacramento Airport car rental.
Common California scenarios that highlight the difference
Parking damage in Los Angeles: With primary cover, the rental company may handle it internally and only ask you to complete a statement and pay any excess. With secondary cover, you may pay the charge first, then build a reimbursement claim with invoices and proof your primary insurer did not cover all costs.
Windscreen chip on the freeway: Some waivers exclude glass, or include it only with a separate add-on. Primary vs secondary does not override exclusions. The difference is that secondary arrangements more often require you to submit proof of what the first payer did about the glass claim.
Theft from the vehicle versus theft of the vehicle: CDW/LDW is about the hire car itself, not your personal items. If the car is stolen, you may be asked for a police report and evidence you secured the car properly. Primary cover can streamline settlement with the rental firm. Secondary cover can require an additional round of documents for the first payer.
Questions to ask at the counter, without getting lost in jargon
If you want clarity in two minutes, focus on these questions:
Is this CDW/LDW primary or secondary to any other insurance? Ask for the answer in writing if possible, or note the wording on your agreement.
What is the excess, and when is it charged? Clarify whether charges are immediate or only after an assessment.
Which items are excluded? Specifically ask about windscreens, tyres, underbody, roof, keys, towing, admin fees, loss of use, and diminished value.
What documents must I provide after an incident? If you know the list early, you can gather it while still on the trip.
When comparing branches and suppliers, consistency matters. Large brands often have standardised processes, but the local branch still controls how inspections, reports, and billing timelines are handled. If you are weighing providers at LAX, you can review practical supplier options such as Hertz car hire at LAX and compare how their documentation requests align with the cover you plan to rely on.
Choosing between primary and secondary, based on paperwork and risk
Primary can be attractive if you value a simpler claim pathway and want to reduce the chance of paying out first and reclaiming later. It can also reduce the risk of conflict between insurers about who should respond.
Secondary can be suitable when you already have robust first-payer cover you understand well, and you are comfortable assembling documentation if something happens. The trade-off is that you may need to front costs temporarily and manage multiple parties.
For many travellers, the deciding factor is not the label itself, it is the practical claim route: who you must speak to first, whether you must pay before reimbursement, and how quickly you need the matter resolved before you travel home.
FAQ
Is LDW the same as CDW for car hire in the US? They are closely related. CDW usually refers to collision damage, while LDW often includes collision damage plus theft loss. The exact scope depends on the rental agreement wording.
Does primary CDW/LDW mean I will not have to pay anything? Not necessarily. Primary means it pays first for covered losses. You may still owe an excess, and exclusions can still leave you responsible for certain damage types or contract breaches.
If my cover is secondary, will the rental company charge my card? Often yes, because the rental company wants to settle its costs quickly. You may then seek reimbursement from the secondary provider after showing what other cover paid or declined.
What paperwork should I keep for a California car hire claim? Keep photos from pick-up and return, the incident report, police report if applicable, the rental agreement, itemised damage invoices, and any letters from other insurers.
Do CDW/LDW waivers cover damage to other vehicles? Generally no. CDW/LDW relates to the hire car itself. Liability cover for injury or third-party property damage is separate and should be considered independently.
