Quick Summary:
- In US car hire, excess is usually charged per damage incident.
- Separate claims on one rental can mean paying the deductible twice.
- Ask whether a single accident triggers multiple cover parts and deductibles.
- Confirm the excess amount, currency, and hold taken on your card.
When you hire a car in the United Estates, Loss Damage Waiver (LDW) or Collision Damage Waiver (CDW) is often the key product that limits what you pay if the vehicle is damaged. The detail that catches many drivers out is how the “excess” (also called a deductible) is applied, whether it is charged per claim (per incident) or once per rental agreement. The answer is usually “per incident”, but not always, and the fine print around what counts as an incident can matter as much as the number itself.
This guide explains how deductibles typically apply in US car hire, why different documents can use different wording, and what to confirm before you sign or initial anything at the counter. For a broader overview of vehicles and inclusions, see car hire United States.
What LDW/CDW means in practice
LDW and CDW are often described as “waivers” rather than “insurance”. In everyday terms, they limit the rental company’s ability to charge you for damage to the rental vehicle, subject to conditions and exclusions. In many US rentals, you will see one of these patterns:
LDW/CDW with an excess, where you pay up to a stated amount per incident, and the waiver covers the rest of eligible damage.
LDW/CDW with zero excess, where eligible damage to the car is covered without a deductible. Even then, exclusions can still apply.
No LDW/CDW included, where you remain responsible for damage, and may need to rely on separate cover (such as a travel policy or a card benefit) if permitted and valid.
It is also common to see separate cover parts for theft, wheels and glass, roadside assistance, personal accident cover, and supplemental liability. Each part can have its own rules and, sometimes, its own deductible. If you want a provider specific view, the landing pages for Hertz car rental United States and Enterprise car hire United States are helpful starting points for comparing car hire options.
Per claim vs per rental, what is “typical” in the United Estates?
In most US car hire agreements, the deductible is applied per incident, which is effectively per claim. That means if the vehicle is damaged on two separate occasions during one rental, the deductible can be charged twice, once for each event, up to the stated amount each time.
What creates confusion is that some people interpret “per rental” to mean there is a single cap for the whole trip. That can be true in some policies, but it is not the default assumption you should make. Rental terms more commonly define liability limits and deductibles in a way that resets with each new loss event.
Here is a practical way to think about it:
Per incident (most common): You reverse into a bollard on day two, then a car park scrape happens on day six. Two separate incidents can lead to two deductibles.
Per rental (less common): The agreement says you will not pay more than the deductible once during the rental, even if there are multiple incidents. If this exists, it should be explicit, because it is a valuable customer-friendly feature.
Because wording differs by supplier and state, you should treat “per incident” as the working assumption unless the agreement specifically says otherwise.
What counts as one incident?
Even if excess is “per incident”, you still need to know how an incident is defined. Many agreements treat damage arising from a single event as one incident, but they may separate different types of loss. This is where drivers can be surprised by multiple charges from what felt like one problem.
Examples of how a single event can lead to multiple charge categories include:
Collision damage and towing/storage: The deductible might apply to the vehicle damage, while towing, storage, administrative fees, or impound charges may sit outside the waiver entirely.
Damage and loss of use: Some agreements allow charging “loss of use” (the time the car is off the road) unless the waiver explicitly covers it. This is not always part of the deductible, it can be an additional amount.
Multiple panels or undetermined cause: A supplier may treat two areas of damage as separate if they believe they occurred at different times. Photos and immediate reporting help prevent disputes.
Theft and damage: If the vehicle is stolen and later recovered damaged, theft-related charges and damage-related charges may be handled differently depending on the contract wording.
The key confirmation to seek before signing is not just “Is there an excess?” but “Is the excess per incident, and how do you define one incident?”
Why your pre-paid voucher and counter contract may differ
Many travellers arrange car hire through a broker or comparison site, then collect the vehicle from the supplier. You might receive a booking voucher describing inclusions in plain language. At the counter, you sign the rental agreement and sometimes a separate coverage summary. If there is a discrepancy, the supplier’s rental agreement usually governs what they can charge on return.
This is why it is worth slowing down at the counter and requesting clarification, especially on LDW/CDW deductibles, exclusions, and whether they apply per claim or per rental. If you are comparing options from value-focused suppliers, Payless car hire United States can be a useful reference point for checking what is included and what is optional.
How the card deposit and “excess” relate
Drivers often assume the credit or debit card hold equals the excess. In US car hire, the security deposit can be higher than the deductible, because it may also cover fuel, tolls, extra days, or potential fees. Conversely, some rentals with a high deductible may still take a modest hold if the supplier uses other methods to secure payment.
Before you sign, confirm:
The deductible amount for LDW/CDW and any separate theft waiver. Ask for the figure in dollars, not just “standard”.
The deposit amount and when it is released. Ask whether it is a hold or an actual charge.
Which card types are accepted, because some locations restrict debit cards or require extra documentation.
What triggers immediate charging, for example damage discovered at return, toll processing, or cleaning fees.
Common situations where you may pay more than the LDW/CDW excess
Even with LDW/CDW, there are scenarios where charges can exceed the deductible. These are not rare edge cases, so it is sensible to understand them before collecting the keys.
Exclusions for prohibited use: Off-road driving, unauthorised roads, racing, driving under the influence, or using the car outside permitted areas can void the waiver.
Unauthorised drivers: If a person not listed on the agreement drives and damage occurs, the waiver may not apply.
Failure to report promptly: Not reporting an accident, not obtaining a police report when required, or not cooperating can affect cover.
Tyres, windscreen, roof, underbody: These areas are sometimes excluded or only covered by an additional product. Whether they are covered varies widely, so it is worth asking a direct question.
Administrative fees and diminished value: Some suppliers may charge admin costs and, in some cases, diminished value, subject to the contract and local rules. These may not be limited by the deductible.
If you are hiring a larger vehicle, remember that damage can be easier to pick up in car parks and tight turns. That makes it even more important to understand how per-incident deductibles work. See minivan rental United States for vehicle category context.
Questions to ask at the counter, in plain language
You do not need to use insurance jargon to get a clear answer. These straightforward questions usually surface the key detail:
1) “If the car gets damaged twice, do I pay the deductible twice?” This is the simplest way to confirm per claim versus per rental.
2) “What counts as one incident?” Ask how they treat multiple dents, scrape plus cracked glass, or a recovered theft.
3) “Does the deductible apply to each type of cover?” For example, CDW and theft waiver can be separate, and roadside plans may have their own fees.
4) “Is loss of use covered under the waiver?” If not, ask what the charging method is and whether documentation is provided.
5) “Are tyres, wheels, glass, roof, and underbody covered?” Get the answer tied to the product you are accepting or declining.
6) “What is the deposit, and when is it released?” This helps avoid confusion between deductible and authorisation hold.
How to protect yourself if a claim happens
If you have an incident during your United Estates car hire, good documentation helps regardless of who ultimately pays.
Take time-stamped photos and video at pick-up and drop-off, including wheels, glass, roofline, and bumpers.
Report damage immediately and follow the supplier’s instructions. If police attendance is required or recommended, do not skip it.
Keep copies of everything, accident report forms, emails, the rental agreement, and any receipts for towing or roadside help.
Do not authorise repairs yourself unless the supplier instructs you to, because unauthorised repairs can complicate liability.
Ask for a final itemised invoice if anything is charged. It is easier to query a line item early than months later.
So, is LDW/CDW excess charged per claim or per rental?
For most US car hire agreements, the LDW/CDW excess is charged per incident, which means it can be charged more than once during a single rental if there are multiple separate damage events. The times you might see “per rental” treatment are when a specific product or negotiated corporate rate explicitly states it, and the contract language supports it.
The safest approach is to treat the deductible as per claim unless you can point to written wording that says otherwise, and to confirm how the supplier defines a single incident. If you are comparing inclusions across different suppliers or vehicle classes, the United Estates landing pages such as car rental United States can help you evaluate options consistently.
FAQ
Q: If I scrape the bumper twice on the same rental, can I pay two excesses?
A: Yes, often. If the supplier treats them as separate incidents on different occasions, the deductible can apply to each claim.
Q: If damage is found at drop-off and I do not know when it happened, is it still “one incident”?
A: The supplier may treat it as a single loss if it appears related, but they can also classify multiple areas as separate. Pick-up and return photos help clarify timing.
Q: Is the security deposit the same as the LDW/CDW excess?
A: Not necessarily. The deposit is a card hold to secure possible charges, and it can be higher or lower than the deductible.
Q: Does LDW/CDW automatically cover tyres, glass, roof, and underbody?
A: Not always. These items are sometimes excluded or only covered with an extra product, so ask for the coverage list before signing.
Q: Can I be charged beyond the excess even if I bought LDW/CDW?
A: Yes. Exclusions, unauthorised drivers, prohibited use, and certain fees like towing or admin charges can fall outside the waiver depending on the agreement.
