Quick Summary:
- Confirm whether your Florida car hire price already includes LDW/CDW.
- Check the excess amount, then decide if reimbursement cover matches it.
- Avoid buying both when LDW has zero excess and broad damage cover.
- Review exclusions, glass, tyres, and admin fees before choosing add-ons.
Choosing between LDW/CDW and excess reimbursement for car hire in Florida can feel confusing, especially for UK travellers used to different insurance terms at home. In the US, rental counter language often focuses on “damage waiver” products sold by the rental company, while UK comparison sites frequently promote separate excess reimbursement policies. The key is that these are not the same product, and doubling up can be unnecessary if your rental already includes strong cover.
This guide explains what LDW and CDW typically do in Florida, how excess works, what excess reimbursement actually reimburses, and the practical checks that help you choose the right approach for your trip.
First, what do LDW and CDW mean in Florida?
In Florida car hire, CDW usually stands for Collision Damage Waiver and LDW stands for Loss Damage Waiver. Despite the word “insurance” often being used in conversation, these are normally waivers offered by the rental company that reduce, or remove, what you pay if the hire car is damaged or stolen.
While wording varies by supplier, the typical differences are:
CDW focuses on damage to the rental vehicle caused by a collision. It is meant to protect you from the cost of repairing or replacing the hire car, subject to the agreement terms.
LDW is usually broader. It often includes collision damage plus theft, vandalism, and other loss scenarios, again subject to exclusions.
In practice, many Florida rental desks treat LDW as the “full” waiver product. Whether your rental includes LDW/CDW can depend on where you booked, which package you selected, and what is included for UK residents. It is worth reading the inclusions carefully before you fly.
If you are picking up around Miami, these pages can help you compare options and inclusions by location and supplier: Miami Airport car rental and Miami car rental.
What is “excess”, and why it matters
The excess is the amount you may still have to pay even when LDW/CDW applies. Think of it as your contribution towards the cost of damage or loss. If the excess is high, a minor scrape could still mean a noticeable bill. If the excess is zero, the waiver may cover the full cost of eligible damage, but exclusions can still apply.
For UK travellers, the important thing is to identify which of these applies to your specific car hire deal:
LDW/CDW with excess, where you are covered but you pay up to an agreed amount.
LDW/CDW with zero excess, where you pay nothing for eligible damage, again subject to the rental agreement.
No LDW/CDW included, where you could be liable for the full vehicle value unless you buy a waiver at the counter or have an alternative protection arrangement.
In Florida, your excess can be influenced by vehicle category. Larger vehicles can sometimes have higher excess amounts, and they may come with different exclusions. If you are considering a larger model for luggage or family comfort, check the product terms closely. For example, browsing category options on SUV rental in Miami Beach helps you compare what is offered for that type of vehicle.
How excess reimbursement works, in plain English
Excess reimbursement is normally a separate policy you buy from a third party, not from the rental company. It does not replace LDW/CDW. Instead, it is designed to repay you for certain costs you were charged by the rental company, typically up to the excess amount, after an incident.
Here is the usual process if you rely on excess reimbursement:
1) You still deal with the rental company first. If the car is damaged or stolen, the rental company may charge you up to the excess. That can include repair costs, loss of use, and admin fees, depending on the agreement.
2) You pay upfront. The charge is often taken from your card, sometimes after you return the vehicle.
3) You claim back later. You submit documents and receipts to the reimbursement provider, and if the claim is accepted, you are reimbursed up to policy limits.
This is why excess reimbursement can be excellent value when your rental includes LDW/CDW but with a high excess, and you are comfortable with the possibility of paying first and claiming later.
When LDW/CDW is usually the better fit
LDW/CDW tends to suit travellers who prioritise simplicity at the point of need. If something happens, you usually handle it within the rental company’s process, with less reliance on later reimbursement.
LDW/CDW can be especially appealing if:
You want a clear, in-the-moment reduction of liability. A strong waiver can minimise what the desk can charge you for eligible damage.
You prefer fewer moving parts. There is no separate insurer to negotiate with, and fewer documents to assemble for a claim.
Your trip involves busy driving areas. Florida’s mix of highways, city parking, and tourist-heavy areas can increase the chance of minor incidents.
You want to avoid cashflow surprises. Excess reimbursement often requires you to pay first, then recover later. A robust waiver can reduce that exposure.
Supplier terms vary, so focus on the wording in your booking documents rather than the label alone. If you are researching specific rental brands and what they typically offer, this page is useful for context: Payless car rental in Florida.
When excess reimbursement can be the smarter choice
Excess reimbursement can be a good match when your booking already includes LDW/CDW, but the excess is still large enough to worry you. Instead of paying for an “upgrade” waiver at the counter, some travellers prefer to keep the included cover and protect the excess separately.
Excess reimbursement can work well if:
Your included waiver leaves a sizeable excess. The reimbursement policy is aimed exactly at that gap.
You are confident you can document incidents properly. Claims usually require the rental agreement, damage report, receipts, and sometimes police reports.
You are comfortable paying first. If a charge is taken, you can manage the temporary card impact while you claim.
You want cover for common add-on charges. Some policies include extra lines such as towing, lockout, or admin fees, but you must confirm this in the policy wording.
A useful decision rule is: if the excess is low and manageable, reimbursement may be unnecessary. If the excess is high and would be painful to absorb, reimbursement could be worth considering.
When doubling up is unnecessary for UK travellers
Many UK travellers end up paying twice because the products sound similar at the counter. Doubling up is often unnecessary in these situations:
1) Your car hire already includes LDW with zero excess. If you have zero excess for eligible damage, a separate excess reimbursement policy has little to reimburse. It may still cover some fees or excluded parts, but you must verify that carefully, otherwise it is redundant.
2) You buy the rental company’s “zero excess” upgrade and also keep reimbursement. If the upgrade genuinely reduces the excess to zero, you are again paying for a policy whose main purpose is to refund an excess you no longer have.
3) You misunderstand what reimbursement is. Reimbursement is not a waiver. It will not stop the rental company charging your card. It typically pays you back later, and only if your claim meets the terms.
4) The policy exclusions overlap in a way that still leaves gaps. Two policies do not automatically create better cover. If both exclude the same common items, you might still be exposed while paying extra.
Instead of stacking products, aim for one clear strategy: either a rental package with a strong waiver and low liability, or a package with a higher excess plus reimbursement that you understand and can use properly.
Key exclusions and grey areas to check before you decide
The most important part of choosing between LDW/CDW and excess reimbursement is reading what is not covered. In Florida car hire, travellers commonly get caught out by assumptions around specific parts of the vehicle and specific types of incidents.
Glass, tyres, wheels, underbody, and roof can be excluded or limited. Some waivers cover these, some do not, and reimbursement policies vary too. If you expect motorway driving with potential stone chips, check the glass position. If you are heading to beach parking areas, check tyres and wheels.
Administrative and “loss of use” charges may be billed by the rental company after damage. Some reimbursement policies cover these, some cap them, and some exclude them entirely.
Negligence, off-road use, and unauthorised driving can void cover. Florida has plenty of tempting detours, but many agreements restrict unpaved roads, and cover can depend on the incident circumstances.
Security deposits and card holds are separate from excess. Even with excellent cover, the rental company may place a deposit hold on your card. Reimbursement does not usually change the size of the deposit.
Because the details can differ by supplier and vehicle group, it helps to compare options by pickup location as well. For Gulf Coast travel, start with car hire at Tampa Airport.
A simple decision checklist for Florida car hire
Use this step-by-step approach to choose confidently.
Step 1: Identify what is included in your rate. Look for LDW or CDW, and whether theft is included. If you cannot find it, assume it is not included until confirmed in writing.
Step 2: Find the excess amount. Do not guess. If the excess is presented as a range, clarify what applies to your car category.
Step 3: Decide what you want to optimise. If you want minimal hassle and minimal card exposure, prioritise strong LDW/CDW with low or zero excess. If you want to keep upfront costs down and can handle reimbursement claims, consider excess reimbursement.
Step 4: Compare exclusions, not just price. Make sure the things you worry about most are covered by your chosen approach. If you are unsure, lean towards the option with clearer protection and fewer claim steps.
Step 5: Avoid paying twice for the same gap. If you have zero excess, reimbursement rarely adds value. If you have reimbursement, buying an extra waiver to reduce excess might duplicate what you already arranged.
Step 6: Keep documentation habits in mind. Reimbursement claims can be straightforward if you keep photos, incident notes, and paperwork. If that sounds stressful on holiday, a stronger waiver may be the calmer choice.
FAQ
Is LDW/CDW the same as car insurance in Florida?
Not usually. LDW/CDW is typically a waiver from the rental company that limits what you pay for damage or theft of the hire car, subject to the agreement.
If I have excess reimbursement, do I still need LDW/CDW?
Yes in most cases. Excess reimbursement generally pays you back after the rental company charges you under their waiver terms. Without LDW/CDW, you could be liable for much more than the excess.
What does “zero excess” really mean for car hire?
It usually means you do not pay an excess for eligible damage covered by the waiver. Exclusions can still apply, so check items like glass, tyres, underbody, and admin fees.
Will excess reimbursement stop the rental company charging my card?
No. It normally does not prevent charges. You may have to pay first, then claim back from the reimbursement provider with supporting documents.
Can I rely on my UK travel insurance instead of LDW/CDW?
Some UK policies include car hire excess cover, but they rarely replace LDW/CDW itself. Always confirm what your policy covers, its limits, and how claims work before relying on it.
