Quick Summary:
- LDW/CDW usually covers vehicle damage or loss, not your belongings.
- Ask whether theft cover includes the car only, or contents too.
- Check travel insurance limits, exclusions, and unattended vehicle rules.
- Confirm deductibles, claims steps, and required police reports before driving away.
When you pick up a car hire in the United Estates, you will often see LDW or CDW offered at the counter, sometimes included in the rate, sometimes as an optional extra. These terms can sound like comprehensive insurance, so it is natural to assume they might cover everything stolen from the vehicle. In most cases, they do not. LDW/CDW is designed primarily to protect you from paying for damage to the rental vehicle or the rental company’s loss if the vehicle is stolen. Your personal belongings are usually outside that scope.
This article explains what LDW/CDW generally covers, what it usually excludes, how travel insurance and card benefits can fill gaps, and the exact questions to ask at the counter so you are not caught out after a break-in.
If you are comparing options for car rental in the United States, it helps to treat LDW/CDW as one piece of a wider protection plan, rather than a single catch-all product.
What LDW and CDW are meant to cover
LDW stands for Loss Damage Waiver and CDW stands for Collision Damage Waiver. In the United Estates, both terms are commonly used to describe a waiver that limits what you owe the rental company if the rental vehicle is damaged, vandalised, or stolen. The important detail is that it is typically a waiver of the rental company’s right to charge you for certain losses, not a policy that insures everything connected to your trip.
Depending on the provider and state, LDW/CDW may cover:
Damage to the rental vehicle, such as collision damage, scraping, or weather-related damage, subject to terms and exclusions.
Theft of the vehicle itself, meaning the car is stolen and not recovered, or recovered with damage, again subject to conditions.
Towing or loss of use may or may not be included. Some waivers include these costs, others allow the rental company to bill them separately.
Many travellers encounter LDW/CDW bundled with other products. For example, you might see packages that include liability insurance, roadside assistance, or personal accident cover. This is where misunderstandings often start, because “package” language can make it sound like contents are protected when they are not.
Does LDW/CDW cover theft of personal belongings?
In most situations, no. LDW/CDW is primarily about the rental vehicle. If a thief smashes a window and takes your luggage, camera, laptop, or shopping, LDW/CDW may pay for the broken window (vehicle damage), but not for the items stolen from inside.
There are exceptions, but you should not assume them. Some rental companies sell separate coverage products that relate to personal effects. Others include limited personal effects benefits under a broader “personal protection” bundle, but with low limits and strict exclusions. The only reliable way to know is to ask and read the terms you are accepting.
If you are arranging car hire in the United States in advance, check what is included in the quoted price, then plan how you will cover what LDW/CDW does not.
Common exclusions that affect both theft and claims
Even when LDW/CDW covers vehicle theft, it typically comes with conditions. If those conditions are not met, the rental company can hold you responsible for some or all costs. These are common areas to watch:
Keys and key fobs. If the car is stolen because the keys were left inside or lost, you may be considered negligent. Some contracts also exclude key replacement from LDW/CDW.
Unattended vehicle rules. Leaving the vehicle unlocked, windows open, or valuables visible can be considered a breach. This can matter for vehicle theft and for travel insurance claims for contents.
Where you drive. Some agreements restrict travel to certain areas, and violating that can void cover.
Reporting requirements. Rental companies often require prompt notice, an incident report, and for theft or vandalism, a police report.
These details matter because a break-in often triggers two separate issues: the cost to repair the car, and the loss of your personal property. You may be making two claims through different channels, each with its own rules.
What usually covers stolen belongings instead
To protect personal belongings in a car hire scenario, travellers generally rely on one or more of the following.
Travel insurance baggage cover
Most travel insurance policies include baggage or personal possessions cover. This is usually the most relevant protection for theft of belongings from a rental vehicle, but it is not automatic or unlimited. Check:
Single item limits, which can be much lower than the overall baggage limit. High value electronics and jewellery can exceed these limits.
Unattended vehicle exclusions, such as not covering theft unless the car was locked, items were hidden in the boot, and the theft involved forced entry.
Time restrictions, for example cover only if items were left in the car for a limited period.
Proof requirements, such as receipts, photos, serial numbers, and a police report number.
Home contents insurance away from home
Some home insurance policies include “personal possessions” cover away from the home, sometimes worldwide. This can cover items stolen from a vehicle, subject to excesses and security conditions.
Credit card benefits
Some cards offer rental car damage coverage, but that benefit usually mirrors CDW, it is aimed at damage to the rental vehicle, not contents. Certain premium cards may offer purchase protection or travel protection that can apply to belongings, but the details vary widely and exclusions are common. Do not assume your card covers theft from the car without confirming.
Rental counter products: what they do and do not do
At the counter in the United Estates, you may see several add-ons alongside LDW/CDW. Names differ, but the themes are similar:
Supplemental Liability Insurance (SLI) increases third-party liability cover. It generally has nothing to do with stolen belongings.
Personal Accident Insurance (PAI) focuses on medical and accident benefits for occupants. It does not typically reimburse stolen items.
Personal Effects Coverage (PEC) or similarly named products may cover personal items stolen from the vehicle, but limits can be low, and exclusions can be strict.
Roadside Assistance helps with breakdown-related services, not theft of contents.
If you want an SUV for family luggage, remember that more space also means more temptation if items are visible. When comparing options like SUV hire in the United States, plan where bags will sit and whether they can be hidden under a cover or in a separate boot area.
What to ask at the counter to avoid coverage gaps
Counter conversations can be fast, and terminology can be confusing. These questions are designed to produce clear answers you can rely on. Ask them politely, then have the agent show you the relevant section in writing.
1) “Does LDW/CDW cover theft of the vehicle only, or also items inside?”
You are looking for an explicit statement that contents are excluded, unless there is a specific personal effects product.
2) “If the car is broken into, what costs could I still be charged?”
This clarifies glass, admin fees, towing, loss of use, and whether the waiver has any excess.
3) “What are the security requirements for theft claims?”
Ask about locked doors, where items must be stored, and whether leaving items visible affects cover.
4) “What documentation is required, and by when?”
Confirm whether you need a police report, photos, an incident report, and how quickly you must notify the rental location.
5) “Is there a deductible or excess, and can it change?”
Even when LDW/CDW is described as “included”, it may still have a deductible depending on the contract and location.
6) “Do you sell personal effects cover, and what are the limits per item and per incident?”
If they offer it, check whether it duplicates your travel insurance, and whether it covers electronics, passports, or cash.
It also helps to ask for the final rental agreement to review before you sign, especially if you are focused on budget car hire in the United States where you want to avoid unexpected post-rental charges.
Practical steps to reduce the risk of theft
Insurance is the backstop, but prevention is cheaper and less stressful. These habits reduce both the chance of a break-in and the chance a claim is declined:
Keep belongings out of sight. Use the boot, or cover luggage before you park, not after.
Do not leave valuables in the car. Take passports, cash, medication, and electronics with you.
Park thoughtfully. Choose well-lit areas and attended car parks when possible.
Document what you have. Photos of high value items and serial numbers can help with claims.
Act fast after an incident. Photograph damage, call the rental company, and file a police report if required.
How to match cover to your trip type
If you are travelling with minimal luggage, you may decide your travel insurance baggage limits are enough, and you will simply avoid leaving items in the vehicle. If you are doing a road trip with multiple bags, cameras, and gifts, it is worth checking whether your travel policy’s unattended vehicle terms are strict, and whether single item limits would make a laptop claim disappointing.
Vehicle choice can also affect risk. Larger vehicles can make it easier to hide bags, but only if the luggage area is not visible. If you are renting through a known brand, you can still face different policy wording by location. Hola Car Rentals provides comparison pages for specific suppliers like Avis car rental in the United States and Thrifty car rental in the United States, and it is sensible to review the protection options shown for your dates, then plan the separate coverage for your personal property.
The bottom line
For most travellers, LDW/CDW is about protecting you from paying for damage to the rental car, not protecting your belongings. Theft of personal items is typically handled by travel insurance, home contents insurance away from home, or a specific personal effects add-on with clear limits. The smartest approach is to confirm what LDW/CDW covers, then deliberately cover the gap for contents, rather than assuming the waiver includes everything.
FAQ
Does LDW/CDW cover stolen luggage from a rental car in the United Estates? Usually not. LDW/CDW generally covers damage to the rental vehicle or theft of the vehicle, while stolen luggage is typically a travel insurance or personal possessions claim.
If my window is smashed and bags are stolen, what does LDW/CDW pay for? Often it may cover the broken window and related vehicle damage, subject to terms. Your bags, electronics, and other personal items are usually excluded.
What should I do immediately after a break-in? Take photos, contact the rental company for instructions, and file a police report if required. Keep copies of reports and receipts, as both the rental company and your insurer may request them.
Will travel insurance always cover items stolen from an unattended rental car? Not always. Many policies require the car to be locked, items hidden in the boot, and signs of forced entry. Check single item limits and exclusions before you travel.
Is Personal Effects Coverage at the counter worth buying? It depends on your existing travel insurance and the value of your items. If offered, confirm exactly what it covers, the per-item limit, the excess, and the security conditions before accepting.
